12. Income Taxes
The Company has $1,518,526 of net operating losses carried forward to offset taxable income in future years which expire commencing in fiscal 2030. The income tax benefit differs from the amount computed by applying the US federal income tax rate of 34% and the Canada federal and provincial tax rate of 26% to net loss before income taxes for the year ended April 30, 2017 and 2016 as a result of the following:
|
|
| 2017 $ | 2016 $ |
|
|
|
|
|
| Net loss before taxes |
| (2,292,458) | (125,638) |
| Statutory rate |
| 34% | 34% |
|
|
|
|
|
| Computed expected tax recovery |
| (779,435) | (42,717) |
| Permanent differences and other |
| 613,105 | 2,343 |
| Change in valuation allowance |
| 166,330 | 40,374 |
|
|
|
|
|
| Income tax provision |
| - | - |
The significant components of deferred income tax assets and liabilities as at April 30, 2016 and 2015 after applying enacted corporate income tax rates are as follows:
|
|
| 2017 $ | 2016 $ |
|
|
|
|
|
| Net operating losses carried forward |
| 519,662 | 353,332 |
|
|
|
|
|
| Total gross deferred income tax assets |
| 519,662 | 353,332 |
| Valuation allowance |
| (519,662) | (353,332) |
|
|
|
|
|
| Net deferred tax asset |
| – | – |
Future tax benefits, which may arise as a result of these losses, have not been recognized in these financial statements, and have been offset by a valuation allowance. As at April 30, 2017, the Company has no uncertain tax positions.