NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
(All amounts in US$’000’s unless otherwise stated)
92
FORTUNA SILVER MINES INC. | 2014 ANNUAL REPORT
b) The tax effected items that give rise to significant portions of the deferred income tax assets and deferred income
tax liabilities at December 31, 2014 and 2013 are presented below:
December 31,
December 31,
2014
2013
Deferred income tax assets:
Non-capital losses
$
–
$
6,148
Provisions and other
3,889
3,301
Equipment
–
–
Other
2,515
898
Net deferred income tax assets
6,404
10,347
Deferred income tax liabilities:
Mineral properties – Peru
$ (11,280)
$ (10,393)
Mineral properties – Mexico
(10,302)
(8,241)
Special Mining Royalty
(5,870)
(7,677)
Equipment
(7,541)
(9,169)
Other
(311)
–
Total deferred income tax liabilities
$ (35,304)
$ (35,480)
Net deferred income tax liabilities
$ (28,900)
$ (25,133)
Classification
Non-current assets
$ 126
$
151
Non-current liabilities
(29,026)
(25,284)
Net deferred income tax liabilities
$ (28,900)
$ (25,133)
c) The Company recognizes tax benefits on losses or other deductible amounts generated in countries where the probable
criteria for the recognition of deferred tax assets has been met. The Company’s unrecognized deductible temporary
differences and unused tax losses for which no deferred tax asset is recognized consist of the following amounts:
December 31,
December 31,
2014
2013
Non-capital losses
$ 46,166
$ 44,961
Provisions and other
6,009
2,941
Share issue cost
639
1,119
Mineral properties, plant and equipment
1,704
1,593
Capital losses
1,004
–
Unrecognized deductible temporary differences
$ 55,522
$ 50,614
The Company’s unrecognized taxable temporary difference consists of the following amounts:
December 31,
December 31,
2014
2013
Investment in subsidiaries
$ 22,775
$ 13,599
Unrecognized taxable temporary differences
$ 22,775
$ 13,599
The Company’s tax losses have the following expiry dates:
Expiry Date
Non-capital losses, expiring as follows:
Canada
$ 45,634
2025 - 2034
Mexico
419
2021 - 2026
Barbados
113
2022 - 2023
$ 46,166
12. Income Tax (Continued)
