17.  Income Taxes

Reconciliation of the Company’s income tax expenses are as follows:

Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting processes. The components of deferred income tax assets are as follows:

The Company has adopted FASB ASC 740-10 to account for income taxes.  The Company currently has no issues creating timing differences that would mandate deferred tax expense.  Net operating losses would create possible tax assets in future years.  Due to the uncertainty of the utilization of net operating loss carry forwards, an evaluation allowance has been made to the extent of any tax benefit that net operating losses may generate. As at December 31, 2016, a provision for income taxes has not been made due to net operating loss carry-forwards of $5,954,978 (2015 - $5,326,905), which may be offset against future taxable income, expiring in the following years:

The Company did not have any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months.

The tax years that remain subject to examination by major taxation jurisdictions are those for the years ended December 31, 2016, 2015, 2014, 2013, 2012 and 2011. The actual losses available could differ from these estimates.