NOTE 14. INCOME TAXES
The components of the cumulative net deferred tax asset at December 31, 2015 and 2014, the statutory tax rate, the effective tax rate and the amount of the valuation allowance are indicated below:
| December 31, 2015 | December 31, 2014 |
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|
|
|
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| Income (loss) before taxes | $ | (3,719,898 | ) | $ | (1,113,197 | ) |
| Statutory rate |
| 34% |
|
| 34% |
|
|
|
|
|
|
|
| |
| Computed expected tax payable (recovery) | $ | (1,264,800 | ) | $ | (378,500 | ) |
| Non-deductible expenses |
| 4,500 |
| –– |
| |
| Change in valuation allowance |
| 1,260,300 |
| 378,500 |
| |
| Reported income taxes | $ | –– |
| $ | –– |
|
The significant components of deferred income tax assets and liabilities at December 31, 2015 and 2014 are as follows:
|
| December 31, 2015 | December 31, 2014 |
| |||
|
|
|
|
|
|
| |
| Net operating loss carried forward | $ | 2,227,300 | $ | 1,017,000 |
| |
|
|
|
|
| |||
| Valuation allowance |
| (2,227,300 | ) |
| (1,017,000 | ) |
|
|
|
|
|
|
| |
| Net deferred income tax asset | $ | –– | $ | –– |
| |
As at December 31, 2015, the Company had approximately $6,698,000 of federal net operating losses which expire commencing in the year 2026.