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## (D) Rate Reconciliation 

The following table reconciles the expected income tax expense using the statutory tax rate to the expense: 

<img src='content_image/163758.jpg'>

The statutory income tax rate of 25.9% (2012 – 25.5%) increased due to changes in Capstone's allocation of provincial taxable income. 

## (E) Current Income Taxes 

Current income taxes payable of $2,581 are included in accounts payable and other liabilities on the statement of financial position (see note 17(a)). 

## NOTE 17. ACCOUNTS PAYABLE AND OTHER LIABILITIES 

## (A) Current Payables and Accrued Liabilities 

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Income taxes payable primarily comprised $318 (2012 - $1,099) for Part V.1 on preferred dividends and $1,494 (2012 - Nil) for Part XII.6 for Canadian Renewable and Conservation Expense ("CRCE") CRCE penalties, as well as potential claims which may arise as a result of possible reassessments denying personal tax deductions to the investors. Part XII.6 taxes arose from the acquisition of ReD as a result of obligations to incur qualifying CRCE for previously issued flow-through shares. The remaining $769 $  are attributable to current income taxes payable (2012 - $1,087). 

## (B) Deferred Revenue 

Deferred revenue represents grants and contributions received by the utilities – water segment in respect of assets that are not related to the water network less amounts amortized to the statement of income: 

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## NOTE 18. FINANCE LEASE OBLIGATIONS 

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For the year ended December 31, 2013, the Corporation repaid $3,339 (December 31, 2012 - $5,172) on finance leases, including interest of $126 (December 31, 2012 – $221). 

