NOTE 9 – INCOME TAXES
The Company.uses the liability method, where deferred tax assets and liabilities are determined based on the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reporting purposes. During the years ended February 28, 2017, and February 29, 2016, the Company incurred net losses and, therefore, has no tax liability. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward amounted to $1,688,424 at February 28, 2017, and will start to expire in 2035.
As at February 28, 2017 and February 29, 2016, deferred tax assets consisted of the following:
| 2016 | 2016 | |||||||
| Net operating loss carryforwards | $ | 1,688,424 | $ | 1,096,521 | ||||
| Deferred tax asset | $ | 574,064 | $ | 372,817 | ||||
| Less: Valuation allowance | (574,064 | ) | (372,817 | ) | ||||
| Net deferred tax asset | $ | - | $ | - | ||||