| INCOME TAXES [Text Block] |
The Company has non-capital losses of approximately $1
available, which can be applied against future taxable income and which expire as follows:
| |
|
|
USA
|
|
|
Canada
|
|
|
Total
|
|
| |
2025 |
$ |
188,494
|
|
|
|
|
|
188,494
|
|
| |
2026 |
|
609,991
|
|
|
|
|
|
609,991
|
|
| |
2027 |
|
1,731,495
|
|
|
|
|
|
1,731,495
|
|
| |
2028 |
|
3,174,989
|
|
|
|
|
|
3,174,989
|
|
| |
2029 |
|
2,792,560
|
|
|
|
|
|
2,792,560
|
|
| |
2030 |
|
2,044,857
|
|
|
|
|
|
2,044,857
|
|
| |
2031 |
|
854,218
|
|
|
|
|
|
854,218
|
|
| |
2032 |
|
1,073,610
|
|
|
|
|
|
1,073,610
|
|
| |
2033 |
|
1,410,557
|
|
|
|
|
|
1,410,557
|
|
| |
2034 |
|
882,513
|
|
|
1,089,850
|
|
|
1,972,363
|
|
| |
2035 |
|
722,853
|
|
|
1,124,876
|
|
|
1,847,729
|
|
| |
2036 |
|
600,185
|
|
|
963,545
|
|
|
1,563,730
|
|
| |
|
$ |
16,086,322
|
|
|
3,178,271
|
|
|
19,264,593
|
|
The reconciliation of income taxes at statutory income tax rates (U.S –
35% and Canada –
26.5% on their respective losses) to the income tax expense is as follows:
| |
|
|
November |
|
|
November |
|
| |
|
|
30, 2016
|
|
|
30, 2015
|
|
| |
|
|
|
|
|
(Restated) |
|
| |
|
|
|
|
|
(See Note 17 |
) |
| |
Loss before income taxes |
$ |
(1,924,110
|
) |
$ |
(2,331,734
|
) |
| |
Income tax recovery at statutory rate |
|
(592,327
|
) |
|
(728,692
|
) |
| |
Permanent differences |
|
49,587
|
|
|
245,949
|
|
| |
Tax benefit not recognized |
|
542,740
|
|
|
482,743
|
|
| |
Income taxes – current and deferred |
$ |
-
|
|
$ |
-
|
|
Reconciliation of statutory tax rate to the effective income tax rate is as follows:
| |
Statutory income tax rate – USA |
|
35.0%
|
|
| |
Deferred tax asset valuation allowance - USA |
|
(35.0)%
|
|
| |
|
|
|
|
| |
Statutory income tax rate – Canada |
|
26.5%
|
|
| |
Deferred tax asset valuation allowance - Canada |
|
(26.5)%
|
|
Deferred tax asset components as of November 30, 2016 and 2015 are as follows:
| |
|
|
2016 |
|
|
2015 |
|
| |
Non capital losses available to offset future income-taxes |
$ |
19,264,593
|
|
$ |
17,700,863
|
|
| |
|
|
|
|
|
|
|
| |
Expected Income tax recovery at statutory rates |
$ |
(6,472,455
|
) |
$ |
(6,007,050
|
) |
| |
Valuation Allowance |
$ |
6,472,455
|
|
$ |
6,007,050
|
|
| |
Net deferred tax assets |
|
-
|
|
|
-
|
|
As the Company has recognized substantial cumulative losses from operations and has not earned significant revenues, it has provided a
100
per cent valuation allowance on the net deferred tax asset as of November 30, 2016 and 2015. Management believes the Company has no uncertain tax position.
|