The provision / (benefit) for income taxes for the year ended December 31, 2016 differs from the amount which would be expected as a result of applying the statutory tax rates to the losses before income taxes due primarily to changes in the valuation allowance to fully reserve net deferred tax assets.

Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and carry-forwards are expected to be available to reduce taxable income.

		December 31,				December 31,
		2016				2015
		$				$
Deferred tax assets:
Pre-tax loss as reported			(642,289)				(446,665)
U.S. statutory tax rate			34	%			34	%
Expected tax expense (benefit)			218,378				151,866
Total deferred tax assets			218,378				151,866
Less: Valuation allowance			(218,378)				(151,866)
Net deferred tax assets			-

 

The Company has provided a valuation allowance against the full amount of the deferred tax asset due to management’s uncertainty about its realization. As of December 31, 2016, the Company had approximately $642,289 in tax loss carryforwards that can be utilized future periods to reduce taxable income, and expire by the year 2036.