| 7 | Current and deferred income taxes |
The Company has the following non-capital losses available to reduce taxable income of future years:
| Expiry date | $ | ||||
| 2029 | 59,064 | ||||
| 2030 | 936,786 | ||||
| 2031 | 1,014,530 | ||||
| 2033 | 3,658,407 | ||||
| 2034 | 5,016,448 | ||||
| 2035 | 4,334,239 | ||||
| 2036 | 5,483,466 | ||||
| 2037 | 5,249,468 | ||||
In addition, the Company has non-refundable Federal investment tax credits of $207,080 that expire between 2029 and 2037 and non-refundable British Columbia investment tax credits of $112,448 that expire between 2019 and 2027.
Significant components of the Company’s deferred tax assets and tax liabilities are shown below:
| June 30, 2017 $ |
June 30, 2016 $ |
||||||||
| Deferred tax assets: | |||||||||
| Non-capital losses carried forward | 7,340,286 | 4,997,819 | |||||||
| Capital losses carried forward | 17,925 | - | |||||||
| Financing costs | 5,512 | 7,448 | |||||||
| Scientific research and development | 350,435 | 233,773 | |||||||
| Scientific research and development - ITC | 319,528 | - | |||||||
| 8,033,686 | 5,239,040 | ||||||||
| Deferred tax liabilities: | |||||||||
| Scientific research and development – ITC | (53,841 | ) | - | ||||||
| 7,979,845 | 5,239,040 | ||||||||
| Valuation allowance | (7,979,845 | ) | (5,239,040 | ) | |||||
| Net deferred tax assets | - | - | |||||||
The income tax benefit of these tax attributes has not been recorded in these consolidated financial statements because of the uncertainty of their recovery.
The Company’s effective income tax rate differs from the statutory income tax rate of 34% (2016 – 34%).
The differences arise from the following items:
| June 30, 2017 $ |
June 30, 2016 $ |
||||||||
| Tax recovery at statutory income tax rates | (2,747,800 | ) | (2,885,559 | ) | |||||
| Permanent differences | (15,342 | ) | 1,119,908 | ||||||
| Effect of rate differentials between jurisdictions | 464,938 | 257,900 | |||||||
| Other | (62,962 | ) | 34,116 | ||||||
| Change in valuation allowance | 2,361,166 | 1,473,635 | |||||||
| - | - | ||||||||