| 13. |
INCOME TAXES |
|
The following table reconciles the income tax benefit at the U.S. Federal statutory income tax rates to income tax benefit at the Company’s effective tax rates at August 31, 2017 and 2016: |
| August 30, | August 30, | ||||||
| 2017 | 2016 | ||||||
| Loss before taxes | $ | (801,166 | ) | $ | (525,501 | ) | |
| Statutory tax rate | 34% | 34% | |||||
| Expected income tax recovery | (272,396 | ) | (178,670 | ) | |||
| Non-deductible items | 77,326 | 12,616 | |||||
| Change in estimates | (40,132 | ) | (63,512 | ) | |||
| Share issuance costs | (17,769 | ) | (2,706 | ) | |||
| Change in valuation allowance | 252,971 | 232,271 | |||||
| Income tax expense (recovery) | $ | - | $ | - |
Deferred taxes reflect the tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes. Deferred tax assets (liabilities) at August 31, 2017 and 2016 are comprised of the following:
| August 30, | August 30, | ||||||
| 2017 | 2016 | ||||||
| Net operating loss carry forwards | $ | 4,110,965 | $ | 3,903,237 | |||
| Marketable securities | 9,225 | 9,225 | |||||
| Financing costs | 15,839 | 2,165 | |||||
| Mineral property | 32,555 | - | |||||
| Capital loss carry forwards | 7,328 | 8,313 | |||||
| 4,175,912 | 3,922,940 | ||||||
| Valuation allowance | 4,175,912 | 3,922,940 | |||||
| Deferred tax assets (liabilities) | $ | - | $ | - |
|
The Company has net operating loss carry forwards of approximately $11,565,488 which may be carried forward to apply against future taxable income for US tax purposes, subject to the final determination by the taxation authority, expiring in the following years. Future tax assets have not been recognized because it is not probable that future taxable profit will be available against which the Company can utilize the benefits therefrom. |