ALMADEN MINERALS LTD | CIK:0001015647 | 3

  • Filed: 3/29/2018
  • Entity registrant name: ALMADEN MINERALS LTD (CIK: 0001015647)
  • Generator: Thunderdome
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1015647/000117184318002347/0001171843-18-002347-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1015647/000117184318002347/aau-20171231.xml
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    • ifrs-full:DisclosureOfIncomeTaxExplanatory

    17.
    Income Taxes
    (a)
    		 The provision for income taxes differs from the amounts computed by applying the Canadian statutory rates to the net loss before income taxes due to the following:
     
        December 31,
    2017    		     December 31,
    2016    		     December 31,
    2015    		  
    Loss before income taxes   $
    (5,231,295
    		 )   $
    (4,023,504
    		 )   $
    (1,549,125
    		 )
    Statutory rate    
    26.00
    		 %    
    26.00
    		 %    
    26.00
    		 %
                             
    Expected income tax    
    (1,360,137
    		 )    
    (1,046,111
    		 )    
    (402,773
    		 )
    Effect of different tax rates in foreign jurisdictions    
    9,728
    		      
    343
    		      
    (8,855
    		 )
    Non-deductible share-based payments    
    700,198
    		      
    485,943
    		      
    247,192
    		  
    Other permanent items    
    3,360
    		      
    2,022
    		      
    213,166
    		  
    Change in deferred tax assets not recognized    
    1,921,226
    		      
    3,518,776
    		      
    (574,942
    		 )
    Impact of change in tax rates    
    (348,020
    		 )    
    -
    		      
    -
    		  
    Impact of change in expected manner of recovery    
    -
    		      
    853,274
    		      
    (306,411
    		 )
    Share issuance costs    
    (399,602
    		 )    
    (39,241
    		 )    
    (21,723
    		 )
    True-ups and other    
    (526,753
    		 )    
    (3,775,006
    		 )    
    449,746
    		  
    Deferred income tax (recovery) expenses   $
    -
    		     $
    -
    		     $
    (404,600
    		 )
     
    In
    September 2017,
    the British Columbia (BC) Government proposed changes to the general corporate income tax rate to increase the rate from
    11%
    to
    12%
    effective
    January 1, 2018
    and onwards. This change in tax rate was substantively enacted on
    October 26, 2017.
    The relevant deferred tax balances have been remeasured to reflect the increase in the Company’s combined Federal and Provincial (BC) general corporate income tax rate from
    26%
    to
    27%.
     
    (b)
    		 The Company’s deferred income tax recovery and deferred income tax liability relates to the Mexican income tax and Special Mining Duty (“SMD”) associated with the Tuligtic project. As a consequence of the Company’s spin-out (Note
    2
    ), management has determined that the Company will most likely recover the carrying amount of the Tuligtic property through use rather than through sale. Before the spin-out was planned, it was management’s expectation that the carrying amount of the Tuligtic property would be recovered through sale rather than through use. Given this change in expected manner of recovery, the Company has reflected the tax impacts in the financial statements.
     
    The significant components of deferral income taxes assets (liabilities) are as follows:
     
        December 31,
    2017    		     December 31,
    2016    		  
                 
    Deferred tax assets                
    Non-capital losses   $
    4,282,555
    		     $
    4,570,832
    		  
                     
    Deferred tax liabilities                
    Exploration and evaluation assets    
    (5,717,437
    		 )    
    (6,005,714
    		 )
                     
    Net deferred tax liabilities   $
    (1,434,882
    		 )   $
    (1,434,882
    		 )
     
    (c)
    		 Deductible temporary differences, unused tax losses and unused tax credits for which
    no
    deferred tax assets have been recognized are attributable to the following:
     
        December 31,
    2017    		     December 31,
    2016    		  
                 
    Non-capital loss carry forwards   $
    17,803,193
    		     $
    13,238,619
    		  
    Capital loss carry forwards    
    24,538,993
    		      
    24,538,993
    		  
    Exploration and evaluation assets    
    8,221,842
    		      
    8,221,842
    		  
    Share issue costs    
    1,778,234
    		      
    548,690
    		  
    Property, plant and equipment    
    10,127
    		      
    33,492
    		  
    Cumulative eligible capital deduction    
    507,429
    		      
    545,623
    		  
    Investment tax credit    
    239,849
    		      
    239,849
    		  
        $
    53,099,667
    		     $
    47,367,108
    		  
     
    At
    December 31, 2017,
    the Company had operating loss carry forwards available for tax purposes in Canada of
    $15,706,045
    (
    2016
    -
    $13,184,889
    ) which expire between
    2032
    and
    2037
    and in Mexico of
    $16,378,174
    (
    2016
    -
    $15,415,208
    ) which expire between
    2022
    and
    2027.