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11. INCOME TAXES

(a) Income tax (recovery) expense

The reconciliation of income tax calculated at the Canadian statutory tax rate to the income tax (recovery) expense at the effective tax rate recorded in net (loss) income in the consolidated statement of comprehensive income is provided in the table below:

2016 Income tax (recovery) expense recorded in net (loss) income
(in thousands of dollars) 2016 2015
Income tax (recovery) expense calculated based on statutory tax rates 26.7% $ Loss: (10,676) 26.7% $ 61,333
Canadian dividend income not subject to tax 21.8%   Loss: (8,698) Loss: (3.3%)   Loss: (7,607)
Effect of change in tax rates 0.0%   Loss: (0.1%)   Loss: (260)
Non-deductible expenses Loss: (1.0%)   406 0.2%   435
Rate differential on recognized gains on AFS equity instruments Loss: (0.4%)   167 0.1%   191
Other 2.2%   Loss: (911) Loss: (0.1%)   Loss: (332)
Income tax (recovery) expense recorded in net (loss) income 49.3% $ Loss: (19,712) 23.5% $ 53,760
2016 Income tax (recovery) expense
(in thousands of dollars) 2016 2015
Current income taxes $ Loss: (33,328) $ 53,535
Deferred income taxes   13,616   225
Income tax (recovery) expense $ Loss: (19,712) $ 53,760

The major components of the current income tax (recovery) expense are as follows:

2016 Major Components of the Current Income Tax (Recovery) Expense
(in thousands of dollars) 2016 2015
Income taxes related to current year $ Loss: (30,405) $ 51,400
Income taxes related to prior years   Loss: (2,923)   2,135
  $ Loss: (33,328) $ 53,535

Income taxes included in OCI are as follows:

2016 Income taxes included in OCI
(in thousands of dollars) 2016 2015
Items that may be reclassified subsequently to net (loss) income:
Net unrealized gains (losses) on AFS investments $ 28,200 $ Loss: (19,245)
Reclassification to net (loss) income of net recognized gains on AFS investments   Loss: (12,916)   Loss: (12,520)
    15,284   Loss: (31,765)
Items that will not be reclassified subsequently to net (loss) income:
Post-employment benefit obligation gain   117   1,618
Income tax expense (recovery) $ 15,401 $ Loss: (30,147)

(b) Deferred income taxes

The components comprising net deferred income tax assets are as follows:

2016 Income taxes included in OCI
(in thousands of dollars) 2016 2015
Net claim liabilities $ 30,730 $ 29,886
Post-employment benefit plans   12,456   11,516
DPAE   332   1,338
Property and equipment   Loss: (18,557)   Loss: (3,281)
Investments   Loss: (25)   Loss: (23)
Other   2,413   1,646
  $ 27,349 $ 41,082

The components comprising deferred income tax expense are as follows:

2016 Income taxes included in OCI
(in thousands of dollars) 2016 2015
Net claim liabilities $ Loss: (844) $ 214
Post-employment benefit plans   Loss: (1,057)   Loss: (404)
DPAE   1,006   846
Property and equipment   15,276   Loss: (1,621)
Investments   2   10
Other   Loss: (767)   1,180
  $ 13,616 $ 225