v3.22.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The domestic and foreign components of income before income taxes and (provision for) recovery of income taxes were as follows:
Years ended
December 31, 2021December 31, 2020
$$
Income before income taxes
Domestic1,920,503 133,757 
Foreign1,220,089 106,607 
3,140,592 240,364 
Current income tax (expense) recovery
Domestic(1,815)54,251 
Foreign(33,155)(19,907)
(34,970)34,344 
Deferred income tax (expense) recovery
Domestic(191,589)(12,552)
Foreign626 57,353 
(190,963)44,801 
(Provision for) recovery of income taxes(225,933)79,145 

The reconciliation of the expected income tax (expense) recovery to the actual (provision for) recovery of income taxes reported in the consolidated statements of operations and comprehensive income for the years ended December 31, 2021 and 2020 is as follows:     
Years ended
 December 31, 2021December 31, 2020
$$
Income before income taxes3,140,592 240,364 
Expected income tax expense at Canadian statutory income tax rate of 26.5% (2020 - 26.5%)
(832,446)(63,711)
Permanent differences
Net unrealized gain on equity and other investments377,707 17,917 
Stock-based compensation155,011 122,882 
Foreign tax rate differential75,940 16,825 
Tax credits recognized during the year27,244 1,900 
Change in valuation allowance(17,805)(18,973)
Other items(11,584)2,305 
(Provision for) recovery of income taxes(225,933)79,145 

The Company assesses whether valuation allowances should be established or maintained against its deferred tax assets, based on consideration of all available evidence, using a "more-likely-than-not" standard. The factors the Company uses to assess the likelihood of realization are its history of losses,
forecasts of future pre-tax income, and tax planning strategies that could be implemented to realize the deferred tax assets.
The significant components of the Company’s deferred income tax assets and liabilities as of December 31, 2021 and 2020 are as follows:     
 December 31, 2021December 31, 2020
$$
Deferred tax assets  
Tax loss carryforwards261,945 101,209 
Accruals and reserves55,337 21,926 
Investment tax credits42,697 13,464 
Capital and intangible assets41,790 50,297 
Stock-based compensation expense33,909 16,653 
Scientific Research and Experimental Development expenditures carryforwards20,189 — 
Lease liabilities62,418 39,220 
Share issuance costs11,403 14,423 
Total deferred tax assets, before valuation allowance529,688 257,192 
Valuation allowance(179,115)(123,345)
Total deferred tax assets350,573 133,847 
Deferred tax liabilities  
Equity and other investments(275,037)(17,917)
Outside basis difference of foreign subsidiaries(130,419)(616)
Lease assets(45,184)(29,928)
Intangible assets(33,652)(32,521)
Other deferred tax liabilities(1,339)(188)
Total deferred tax liabilities(485,631)(81,170)
Total deferred tax (liabilities) assets, net(135,058)52,677 

During the year ended December 31, 2021, the Company assessed whether a valuation allowance should be established or maintained against its deferred tax assets, based on consideration of all available positive and negative evidence, using a "more-likely-than-not" standard. The factors the Company uses to assess the likelihood of realization are its recent operating results, historical losses and the cumulative losses, forecasts of future pre-tax income, and tax planning strategies that could be implemented to realize the deferred tax assets.

As a result of the application of the Company's tax rates on the results of ongoing operations, other discrete items primarily related to share-based compensation, non-taxable gains on unrealized equity and other investments, the change in valuation allowance applied to deferred tax assets in the United States, and the reversal of the valuation allowance related to deferred tax assets in Canada, the Company had a provision for income taxes of $225,933 in the year ended December 31, 2021.

As a result of the application of the Company's tax rates on the results of ongoing operations, other discrete items, primarily related to tax benefits for share-based compensation, the impairment of right-of-use assets and fixed assets, unrealized gains on equity and other investments, and considering the Company's ability
to carry-back losses to prior years in Canada along with the reversal of the valuation allowance related to the deferred tax assets in the United States, Ireland, and Singapore, the Company has a recovery of income taxes of $79,145 in the year ended December 31, 2020.

During the year ended December 31, 2021, the Company released a portion of the valuation allowance against its deferred income tax assets in Canada due to the overall unrealized gain on the Company’s equity and other investments.

During the year ended December 31, 2020, the Company released the valuation allowance against its deferred income tax assets in Ireland and Singapore due to the Company's profits in these taxing jurisdictions, and projections of future taxable income.

During the year ended December 31, 2021, the Company received a development and expansion incentive under the International Headquarters Award in Singapore. The incentives granted by the authorities to the Company are effective April 1, 2021 through March 31, 2026 and provide a concessionary tax rate of 5% to earnings in excess of the base income threshold. As a result of the incentive, the Company received an aggregate tax benefit of $4,663 during the year ended December 31, 2021.

The Company had no material uncertain income tax positions for the years ended December 31, 2021 and 2020. The Company's accounting policy is to recognize interest and penalties related to uncertain tax positions as a component of income tax expense. In the years ended December 31, 2021 and 2020, there was no interest or penalties related to uncertain tax positions.

The Company remains subject to audit by the relevant tax authorities for the years ended 2014 through 2021.

Investment tax credits, which are earned as a result of qualifying R&D expenditures, are recognized and applied to reduce income tax expense in the year in which the expenditures are made and their realization is reasonably assured.

As at December 31, 2021 and 2020, the Company had Canadian and U.S. federal unused non-capital tax losses of approximately $670,312 and $342,308, respectively. In addition, at December 31, 2021 and 2020, the Company had unused non-capital tax losses in various U.S. states of approximately $1,393,831 and $446,442, respectively. Of the December 31, 2021 balance, $403,798 and $17,835 of the federal and state non-capital tax losses respectively have no expiry. The remaining non-capital tax losses of $266,514 and $1,375,996, respectively, are due to expire between 2026 and 2041. In addition, at December 31, 2021 and 2020, the Company had an undeducted R&D expenditure balance totaling $76,166 and $nil, respectively, which does not expire. As at December 31, 2021 and 2020, the Company had investment tax credits of $51,690 and $14,629, respectively. The investment tax credits are due to expire between 2035 and 2041.