52 AKITA DRILLING LTD.  ANNUAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Income tax expense is comprised of the following: The following table reconciles the income tax expense using a weighted average Canadian federal and  provincial rate of 25.49% (2012 – 25.36%) to the reported tax expense. The rate increase is due to more of  the Company’s revenue being earned in provinces with higher tax rates. The reconciling items represent, aside  from the impact of tax rate differentials and changes, non-taxable benefits or non-deductible expenses arising  from permanent differences between the local tax base and the reported financial statements, in accordance  with IFRS. Deferred income taxes are the result of temporary differences between the carrying amounts of certain assets  and liabilities in the financial statements and their tax bases. No portion of deferred income taxes is expected  to be recovered within 12 months. 11. Income Taxes $Thousands   Year Ended  December 31 2013 December 31  2012 Current tax expense  $ 5,352   $ 2,916  Deferred tax expense  3,815  6,742  $ 9,167   $ 9,658  $Thousands   Year Ended  December 31 2013 December 31  2012 Income before income taxes   $ 35,682  $ 38,413  Expected income tax at statutory rate of 25.49% (2012 – 25.36%)  9,095  9,724  Add (Deduct): Change in deferred income tax rates 94  (15) Permanent differences  103   169  Return to provision adjustment  (11)  (97) Other  (114) (123) Income tax expense  $ 9,167  $ 9,658  Deferred Income Taxes  $Thousands  Property,  plant and  equipment Employee  pension  benefits Other Total Balance as at December 31, 2011  $ 12,146   $ (503)  $ 508  $ 12,151  Charged/(credited) to net income 6,770  (85)  57  6,742 Charged/(credited) to OCI -  (7) - (7) Balance as at December 31, 2012 18,916  (595)  565   18,886  Charged/(credited) to net income 3,885  (94)  24   3,815 Charged/(credited) to OCI - 37 - 37 Balance as at December 31, 2013  $ 22,801  $ (652)  $ 589   $ 22,738