|
| Income Tax Rate Reconciliation |
|
|
(millions of dollars)
Year ended December 31, |
2006 |
2005 |
| Earnings before income taxes |
|
15.8 |
| Combined statutory income tax rate |
32.5% |
33.6% |
| Income taxes at statutory rate |
5.0 |
5.3 |
| Increase/(decrease) resulting from: |
|
|
| Interest deductions of subsidiaries arising from intercorporate debt |
(20.1) |
(24.4) |
| Tax rate reductions on future income tax balances |
(16.3) |
– |
| Distributions on ECT preferred units |
11.4 |
11.6 |
| Deductions allocated to unitholders |
4.9 |
4.8 |
| Large corporations tax |
– |
2.7 |
| Future income taxes related to regulated operations |
(3.8) |
2.1 |
| Other |
(0.9) |
(1.5) |
| Income taxes/(recovery) |
(19.8) |
0.6 |
| |
|
|
| Effective income tax rate |
(127.7%) |
3.8% |
| Components of Future Income Taxes |
|
|
(millions of dollars)
December 31, |
2006 |
2005 |
| Future income tax liabilities/(assets) |
|
|
| Differences in accounting and tax bases of: |
|
|
| Property, plant and equipment and intangibles |
91.2 |
112.8 |
| Fair value increment on long-term debt acquired |
(14.2) |
(18.9) |
| Other |
(4.2) |
(4.7) |
| |
72.8 |
89.2 |
At December 31, 2006, the Fund has recognized the benefit of unused loss carryforwards of $6.3 million (2005 – $3.8 million). Unused tax loss carryforwards expire as follows: 2010 – $2.1 million, 2014 – $0.9 million, 2015 – $0.9 million and
2026 – $2.4 million.
|
|
