Page 111 - Suncor AR English

Reconciliation of Effective Tax Rate

The provision for income taxes reflects an effective tax rate that differs from the statutory tax rate. A reconciliation of the
difference is as follows:

($ millions) 2013 2012

(restated –
note 6)

Earnings before income tax 6 376 4 984
.......................................................................................................................................................................................................................................................
Canadian statutory tax rate 25.64% 25.67%
.......................................................................................................................................................................................................................................................
Statutory tax 1 635 1 279
.......................................................................................................................................................................................................................................................
Add (deduct) the tax effect of:
.......................................................................................................................................................................................................................................................
Non-taxable component of capital gains and losses 71 (22)
.......................................................................................................................................................................................................................................................
Share-based compensation and other permanent items 5 15
.......................................................................................................................................................................................................................................................
Assessments and adjustments (38) —
.......................................................................................................................................................................................................................................................
Impact of income tax rate and legislative changes(1) — 88
.......................................................................................................................................................................................................................................................
Canadian tax rate differential 4 1
.......................................................................................................................................................................................................................................................
Foreign tax rate differential 691 763
.......................................................................................................................................................................................................................................................
Non-taxable impairment charge 134 127
.......................................................................................................................................................................................................................................................
Other (37) (7)

2 465 2 244

(1) In the second quarter of 2012, the Ontario government substantively enacted legislation to freeze the general corporate income tax rate at 11.5%
instead of the planned reduction to 10%. Accordingly, the company recognized an increase in deferred tax expense of $88 million related to the
revaluation of deferred income tax balances.

Deferred Income Tax Balances

Deferred income tax expense and net liabilities in the company’s consolidated financial statements were comprised of
the following:

Consolidated Statements of
Comprehensive Income
Consolidated Balance Sheets(2)

Dec 31 Dec 31 Jan 1
2013 2012 ($ millions)
2013
2012
2012

(restated –
(restated – (restated –
note 6)
note 6)
note 6)

758 1 266 12 134
Property, plant and equipment
11 991
10 725
.......................................................................................................................................................................................................................................................
Decommissioning and restoration provision (54) (625) (1 017) (1 132) (507)
.......................................................................................................................................................................................................................................................
Employee retirement benefit plans (103) (69) (541) (636) (521)
.......................................................................................................................................................................................................................................................
Tax loss carry-forwards 136 391 (31) (167) (558)
.......................................................................................................................................................................................................................................................
Partnership deferral reserve (213) (189) 192 405 594
.......................................................................................................................................................................................................................................................
Other (142) (45) (18) (95) (91)

382 729 10 719 10 366 9 642

(2) The current and non-current portion of the deferred income tax liability and asset are as follows:

SUNCOR ENERGY INC. ANNUAL REPORT 2013 107