| 16. | Income Taxes |
The following table reconciles the income tax benefit at the statutory rates to income tax benefit at the Company’s effective tax rate.
| 2017 $ |
2016 $ |
||||||||
| Net loss before taxes | (3,427,417 | ) | (7,446,232 | ) | |||||
| Statutory tax rate | 34 | % | 34 | % | |||||
| Expected income tax recovery | 1,165,322 | 2,531,719 | |||||||
| Permanent differences and other | (162,898 | ) | (1,704,462 | ) | |||||
| Change in enacted tax rate | 9,257 | – | |||||||
| Foreign tax rate difference | (171,846 | ) | (101,112 | ) | |||||
| Change in valuation allowance | (839,835 | ) | (726,145 | ) | |||||
| Income tax provision | – | – | |||||||
Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting processes. Deferred income tax assets and liabilities at March 31, 2017 and 2016 are comprised of the following:
| 2017 $ |
2016 $ |
||||||||
| Net operating losses carried forward | 7,908,277 | 7,068,442 | |||||||
| Valuation allowance | (7,908,277 | ) | (7,068,442 | ) | |||||
| Net deferred tax asset | – | – | |||||||
The Company has net operating losses carried forward of $24,237,934 which may be carried forward to apply against future years’ taxable income, subject to the final determination by taxation authorities, expiring in the following years:
| $ | |||||
| 2022 | 71,014 | ||||
| 2028 | 7,372 | ||||
| 2029 | 1,030 | ||||
| 2030 | 469,466 | ||||
| 2031 | 221,276 | ||||
| 2032 | 248,075 | ||||
| 2033 | 1,223,832 | ||||
| 2034 | 14,688,151 | ||||
| 2035 | 1,884,636 | ||||
| 2036 | 2,433,757 | ||||
| 2037 |
2,989,325 |
||||
|
24,237,934 |
|||||
As at March 31, 2017, the Company is in arrears on filing its statutory corporate income tax returns and the amounts presented above are based on estimates. The actual losses available could differ from these estimates.