Annual report pursuant to Section 13 and 15(d)

INCOME TAXES

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INCOME TAXES
 12 Months Ended
Nov. 30, 2011
INCOME TAXES [Text Block]
10.

INCOME TAXES

   
 

The Company has certain non-capital losses of approximately $11,387,337 (2010: $10,528,821) available, which can be applied against future taxable income and which expire as follows:


  2025 $  188,494  
  2026 $  609,991  
  2027 $  1,731,495  
  2028 $  3,174,989  
  2029 $  2,792,560  
  2030 $  2,031,292  
  2031 $  858,516  
    $  11,387,337  

Reconciliation of statutory tax rate to the effective income tax rate is as follows:

  Federal statutory income tax rate   35.0    %
  Deferred tax asset valuation allowance   (35.0 ) %
  Effective rate   (0.0 ) %
   
 

Deferred tax asset components as of November 30, 2011 and 2010 are as follows:


      2011     2010  
  Operating losses available to offset future income-taxes $ 11,387,337   $ 10,528,821  
               
  Expected Income tax recovery at statutory rate of 35% (2010: 35.0%) $ (3,985,568 ) $ (3,685,087 )
  Valuation Allowance $ 3,985,568   $ 3,685,087  
  Net deferred tax assets   -     -  

 

As the company is in the development stage and has not yet earned any revenue, it has provided a 100 per cent valuation allowance on the net deferred tax asset as of November 30, 2011 and 2010.