8. Income Taxes
The Company has $2,588,674 of net operating losses carried forward to offset taxable income in future years which expire commencing in fiscal 2032. The income tax benefit differs from the amount computed by applying the US federal income tax rate of 30% to net loss before income taxes. As at September 30, 2017 and 2016, the Company had no uncertain tax positions. The Company’s last three years of tax returns are open for examination by taxing authorities.
|
| September 30, 2017 $ |
| September 30, 2016 $ |
|
|
|
|
|
| Net loss before taxes | 2,690,342 |
| 28,356,180 |
| Statutory rate | 30% |
| 30% |
|
|
|
|
|
| Computed expected tax recovery | 807,103 |
| 8,506,854 |
| Permanent differences and other | (340,177) |
| (8,221,376) |
| Change in valuation allowance | (466,926) |
| (285,478) |
| Income tax provision | – |
| – |
The significant components of deferred income tax assets and liabilities as at September 30, 2017 and 2016 after applying enacted corporate income tax rates are as follows:
|
| 2017 $ |
| 2016 $ |
|
|
|
|
|
| Net operating losses carried forward | 776,602 |
| 336,694 |
| Valuation allowance | (776,602) |
| (336,694) |
|
|
|
|
|
| Net deferred tax asset | – |
| – |