| INCOME TAXES [Text Block] |
| 10. |
INCOME TAXES
|
| |
|
| |
The Company has certain non-capital losses of approximately $14,371,847
(2012: $12,453,120) 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 |
|
2,044,857
|
|
| |
2031 |
|
854,218
|
|
| |
2032 |
|
1,056,516
|
|
| |
2033 |
|
1,918,727
|
|
| |
|
$ |
14,371,847
|
|
The reconciliation of income taxes at statutory income tax rates to the income tax expense is as follows:
| |
|
|
$ November |
|
|
$ November |
|
| |
|
|
30, 2013
|
|
|
30, 2012
|
|
| |
Loss before income taxes |
|
(2,024,211
|
) |
|
(2,019,938
|
) |
| |
Applicable statutory tax rate |
|
35.0%
|
|
|
35.0%
|
|
| |
Income tax recovery at statutory rate |
|
(708,474
|
) |
|
(706,978
|
) |
| |
Permanent differences |
|
60,566
|
|
|
337,198
|
|
| |
Tax benefit not recognized |
|
647,908
|
|
|
369,780
|
|
| |
Income taxes – current and deferred |
$ |
-
|
|
$ |
-
|
|
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)%
|
| |
|
| |
Deferred tax asset components as of November 30, 2013 and 2012 are as follows:
|
| |
|
|
2013 |
|
|
2012 |
|
| |
Operating losses available to offset future income-taxes |
$ |
14,371,847
|
|
$ |
12,453,120
|
|
| |
|
|
|
|
|
|
|
| |
Expected Income tax recovery at statutory rate of
35% (2012:
35.0%)
|
$ |
(5,030,146
|
) |
$ |
(4,358,592
|
) |
| |
Undeducted share issue costs
|
|
(239,958)
|
|
|
-
|
|
| |
Valuation Allowance |
$ |
5,270,104
|
|
$ |
4,358,592
|
|
| |
Net deferred tax assets |
|
-
|
|
|
-
|
|
| |
As the company is in the development stage 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, 2013 and 2012. Management believes the Company has no uncertain tax position
|
| |
|
|