| Note 8 |
Income Taxes |
|
A reconciliation of the income tax provision computed at statutory rates to the reported tax provision is as follows: |
| Year Ended | Year Ended | ||||||
| April 30, 2017 | April 30, 2016 | ||||||
| Basic statutory and state income tax rate | 35% | 35% | |||||
| Approximate loss before income taxes | $ | 901,403 | $ | 54,808 | |||
| Expected approximate tax recovery on net loss, before income tax | $ | 315,491 | $ | 19,183 | |||
| Changes in valuation allowance | (315,491 | ) | (19,183 | ) | |||
| Deferred income tax recovery | $ | - | $ | - |
Significant components of the Company’s deferred tax assets and liabilities are as follows:
| April 30, 2017 | April 30, 2016 | ||||||
| Deferred income tax assets | |||||||
| Non-capital losses carried forward | $ | 353,735 | $ | 38,244 | |||
| Less: valuation allowance | (353,735 | ) | (38,244 | ) | |||
| Deferred income tax assets | $ | - | $ | - |
At April 30, 2017, the Company has incurred accumulated net operating losses in the United States of America totalling approximately $1,010,671 which are available to reduce taxable income in future taxation years. These losses expire as follows:
| Year of Expiry | Amount | ||
| 2033 | $ | 1,488 | |
| 2034 | $ | 52,972 | |
| 2035 | $ | 54,808 | |
| 2036 | $ | 901,403 |
|
Section 382 of the Internal Revenue Code of 1986, as amended. Ownership changes may limit the amount of the NOL carry forwards that can be utilized annually to offset future taxable income and tax, respectively. |
|
|
The amount taken into income as deferred tax assets must reflect that portion of the income tax loss carry forwards that is more-likely-than-not to be realized from future operations. The Company has chosen to provide an allowance of 100% against all available income tax loss carry forwards, regardless of their time of expiry. |