NOTE 10 – INCOME TAXES
A reconciliation of the differences between the statutory Canadian income tax rate and the Company's effective tax rate is as follows:
During the period ended December 31, 2016, the Company's long-term Canadian effective tax rate was 35%.
| For the period ended December 31, | ||||
| 2016 | ||||
| Net loss for the year before income taxes | $ | (13,984,951 | ) | |
| Expected income tax recovery | (4,894,733 | ) | ||
| Impact of tax rate differences in foreign jurisdictions | 879,845 | |||
| Tax rate changes and other adjustments | 45 | |||
| Permanent differences | 3,721,637 | |||
| Change in valuation allowance | 293,206 | |||
| Total current year permanent items | $ | - | ||
| As at December 31, | ||||
| 2016 | ||||
| Deferred tax assets: | ||||
| Net operating loss carryforwards | $ | 48,300 | ||
| Non-capital loss carryforwards - Canada | 234,423 | |||
| Equipment | 2,513 | |||
| Other | 7,970 | |||
| 293,206 | ||||
| Valuation allowance | (293,206 | ) | ||
| Net deferred tax assets | $ | - | ||
The Company has $138,001 of net operating loss carryforwards in the US, expiring in 2036, and $884,615 non-capital loss carryforwards in Canada also expiring in 2036.