Annual report pursuant to Section 13 and 15(d)

INCOME TAXES

v2.4.1.9
INCOME TAXES
12 Months Ended
Nov. 30, 2014
INCOME TAXES [Text Block]
10.

INCOME TAXES

   
 

The Company has non-capital losses of approximately $15,831,371 (2013: $14,371,847) 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   1,073,610  
  2033   1,410,557  
  2034   1,950,600  
    $ 15,831,371  

The reconciliation of income taxes at statutory income tax rates to the income tax expense is as follows:

      November     November  
      30, 2014     30, 2013  
  Loss before income taxes $ (2,722,412 ) $ (2,024,211 )
  Applicable statutory tax rate   35.0%     35.0%  
  Income tax recovery at statutory rate   (952,844 )   (708,474 )
  Permanent differences   270,134     60,566  
  Tax benefit not recognized   682,710     647,908  
  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, 2014 and 2013 are as follows:


      2014     2013  
  Operating losses available to offset future income-taxes $ 15,831,371   $ 14,371,847  
               
  Expected Income tax recovery at statutory rate of 35% (2012: 35.0% $ (5,540,980 ) $ (5,030,146 )
  Undeducted share issue costs   -     (239,958 )
  Valuation Allowance $ 5,540,980   $ 5,270,104  
  Net deferred tax assets   -     -  

As the company has not earned significant revenues, it has provided a 100 per cent valuation allowance on the net deferred tax asset as of November 30, 2014 and 2013. Management believes the Company has no uncertain tax position