Obtain the 2016 annual report for Telus Corporation either through the company’s website or from SEDAR (www.sedar.com). 

Required: 

a. How much was income tax expense in 2016? How much was current and how much was deferred? 

b. How much was the average effective tax rate faced by the company (calculated as income tax expense divided by pre-tax income)? How does this figure compare with the statutory tax rate according to the company? 

c. How much would tax expense have been in 2016 had the statutory tax rate applied to pretax income? 

d. What was the most significant factor in explaining the difference between the effective and statutory tax rates? 

e. How much was the amount of deferred income tax liability on the balance sheet at the end of 2016? 

f. What was the source of the largest temporary difference contributing to the deferred income tax liability? Explain the nature of this temporary difference; that is, how does this temporary difference arise? 

g. Compute the amount of the temporary difference identified in part (f).