Till's income tax expense (recovery) is as follows:

 

		Year Ended December 31
		2017				2016
Current:
Canada		$	135,903			$	16,431
U.S. and Foreign			—				—
Current income tax expense		$	135,903			$	16,431
Deferred:
Canada		$	(6,931	)		$	(260,569	)
U.S. and Foreign			—				—
Deferred income tax recovery		$	(6,931	)		$	(260,569	)
Income tax expense (recovery)		$	128,972			$	(244,138	)

 

Till's income (loss) from continuing operations before income taxes and loss on equity method investment consisted of:

 

		Year Ended December 31
		2017				2016
Canada		$	(67,142	)		$	(745,786	)
U.S.			1,123,862				(420,504	)
Foreign			(2,425,121	)			1,662,452
Total		$	(1,368,401	)		$	496,162

 

A reconciliation of income taxes at statutory rates with the reported taxes is as follows:

 

		Year Ended December 31
		2017				2016
Income (loss) from continuing operations before income taxes and loss on equity method investment		$	(1,368,401	)		$	496,162
Impact of different foreign statutory rates on earnings of subsidiaries		$	425,000			$	14,000
Permanent differences			(286,000	)			(345,000	)
Impact on changes in future tax rates			6,136,000				—
True up of prior-year provision to statutory tax returns			2,977,000				(476,000	)
Impact of foreign withholding taxes on income earned			136,000				—
Change in valuation allowance and above items			(9,259,028	)			562,862
Total income tax expense (recovery)		$	128,972			$	(244,138	)
Current income tax expense		$	135,903			$	16,431
Deferred income tax expense (recovery)			(6,931	)			(260,569	)
Total income tax expense (recovery)		$	128,972			$	(244,138	)

 

In the United States Government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act of The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates, implementing a modified territorial tax system, and imposing a transition tax on deemed repatriated earnings of foreign subsidiaries. Proposed changes to the U.S. Federal corporate income tax rate to reduce the rate from to effective and onwards was enacted on The relevant net deferred tax asset balances have been reduced by approximately million to reflect the decrease in Till's U.S. Federal income tax rate from to applicable to Till's U.S. subsidiaries. A corresponding valuation allowance in the amount of approximately million was previously applied to Till's deferred tax asset balance in the prior year and as such the change in U.S. tax rate in the current year resulted in a impact to Till's consolidated balance sheet and consolidated statement of loss and comprehensive loss.

 

In the British Columbia (BC) Provincial Government of Canada proposed changes to the provincial general corporate income tax rate to increase the rate from to effective and onwards. That change in tax rate was enacted on The relevant deferred tax balances have been remeasured to reflect the increase in Till's combined Canadian Federal and Provincial (BC) general corporate income tax rate from to

 

The significant components of Till's deferred income tax items are as follows:

 

		Year Ended December 31
		2017				2016
Deferred income tax items:
Losses available for future periods		$	8,588,000			$	11,113,000
Exploration and evaluation assets			5,167,000				6,979,000
Property and equipment			29,000				73,000
Marketable securities			(20,000	)			(97,000	)
Reserves and other			—				32,000
Deferred income tax		$	13,764,000			$	18,100,000
Valuation allowance			(13,764,000	)			(18,100,000	)
Reported deferred income tax asset		$	—			$	—

 

Tax attributes are subject to review and potential adjustment by tax authorities. Till's reorganization involved multiple transactions with various tax considerations that Till believes have material effect on its current or deferred income tax position.

 

In assessing the net carrying amount of the deferred tax asset, Till considers whether it is more-likely-than- that Till will realize some portion or all of the deferred tax asset. The ultimate realization of the deferred tax asset depends on the availability of future taxable income during the periods in which those temporary differences become deductible. Till considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making that assessment.