NOTE 6 - INCOME TAXES
The provision for income taxes differs from the amount that would have resulted in applying the combined federal statutory tax rate as follows:
|
| January 31, 2017 |
| January 31, 2016 | ||
| Net loss | $ | (309,480) |
| $ | (512,288) |
| Statutory income tax rate |
| 34% |
|
| 34% |
| Expected in tax recovery at statutory income tax rates |
| (105,000) |
|
| (174,000) |
| Permanent differences and other |
| 42,000 |
|
| -- |
| Difference in foreign tax rates, foreign exchange, other |
| -- |
|
| 37,000 |
| Adjustment to prior year provisions versus statutory tax returns |
| (116,000) |
|
| (235,000) |
| Change in valuation allowance |
| 179,000 |
|
| 372,000 |
| Income tax recovery | $ | -- |
| $ | -- |
Temporary differences that give rise to the following deferred tax assets and liabilities at are:
|
| January 31, 2017 |
| January 31, 2016 | ||
| Deferred tax assets (liabilities) |
|
|
| ||
| Federal loss carry forwards | $ | 1,179,000 |
| $ | 1,128,000 |
| Foreign loss carry forwards |
| 1,065,000 |
|
| 663,000 |
| Mineral properties |
| (199,000) |
|
| 93,000 |
|
|
| 2,045,000 |
|
| 1,884,000 |
| Valuation allowance |
| (2,045,000) |
|
| (1,884,000) |
|
| $ | -- |
| $ | -- |
The Company has approximately $3,470,000 of United States federal net operating loss carry forwards that may be offset against future taxable income. These losses expire between 2026 and 2036.
The Company also has approximately $3,112,000 of Chilean tax losses. The Chilean tax losses can be carried forward indefinitely.