| INCOME TAXES [Text Block] |
The Company has non-capital losses of approximately $17,700,863
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
|
|
| |
$ |
15,486,137
|
|
|
2,214,726
|
|
|
17,700,863
|
|
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, 2015 |
|
|
30, 2014 |
|
| Loss before income taxes |
$ |
(2,550,438
|
) |
$ |
(2,722,412
|
) |
| Income tax recovery at statutory rate |
|
(797,039
|
) |
|
(868,496
|
) |
| Permanent differences |
|
245,949
|
|
|
270,134
|
|
| Tax benefit not recognized |
|
551,090
|
|
|
598,362
|
|
| 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, 2015 and 2014 are as follows:
| |
|
2015 |
|
|
2014 |
|
| Non capital losses available to offset future income-taxes |
$ |
17,700,863
|
|
$ |
15,853,134
|
|
| |
|
|
|
|
|
|
| Expected Income tax recovery at statutory rates |
$ |
(6,007,050
|
) |
$ |
(5,455,960
|
) |
| Valuation Allowance |
$ |
6,007,050
|
|
$ |
5,455,960
|
|
| 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, 2015 and 2014. Management believes the Company has no uncertain tax position
|