| INCOME TAXES [Text Block] |
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10. |
INCOME TAXES
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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:
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2025 |
$ |
188,494 |
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2026 |
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609,991 |
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2027 |
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1,731,495 |
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2028 |
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3,174,989 |
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2029 |
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2,792,560 |
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2030 |
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2,044,857 |
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2031 |
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854,218 |
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2032 |
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1,073,610 |
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2033 |
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1,410,557 |
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2034 |
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1,950,600 |
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$ |
15,831,371 |
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The reconciliation of income taxes at statutory income tax rates to the income tax expense is as follows:
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November |
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November |
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30, 2014 |
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30, 2013 |
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Loss before income taxes |
$ |
(2,722,412 |
) |
$ |
(2,024,211 |
) |
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Applicable statutory tax rate |
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35.0% |
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35.0% |
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Income tax recovery at statutory rate |
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(952,844 |
) |
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(708,474 |
) |
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Permanent differences |
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270,134 |
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60,566 |
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Tax benefit not recognized |
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682,710 |
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647,908 |
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Income taxes – current and deferred |
$ |
- |
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$ |
- |
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Reconciliation of statutory tax rate to the effective income tax rate is as follows:
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Federal statutory income tax rate |
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35.0% |
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Deferred tax asset valuation allowance |
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(35.0)% |
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Deferred tax asset components as of November 30, 2014 and 2013 are as follows:
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2014 |
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2013 |
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Operating losses available to offset future income-taxes |
$ |
15,831,371 |
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$ |
14,371,847 |
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Expected Income tax recovery at statutory rate of 35% (2012: 35.0% |
$ |
(5,540,980 |
) |
$ |
(5,030,146 |
) |
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Undeducted share issue costs |
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- |
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(239,958 |
) |
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Valuation Allowance |
$ |
5,540,980 |
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$ |
5,270,104 |
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Net deferred tax assets |
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- |
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- |
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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
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