The Company has a net operating loss carried forward of $3,509,374 available to offset taxable income in future years which commence expiring in fiscal 2030.
The income tax benefit has been computed by applying the weighted average income tax rates of Canada (federal and provincial statutory rates) and of the United States (federal and state rates) of 27% and 27%, respectively, to the net loss before income taxes calculated for each jurisdiction. The tax effect of the significant temporary differences, which comprise future tax assets and liabilities, are as follows:
| |
|
2016 |
|
|
2015 |
|
| Income tax recovery at statutory rate |
|
$ |
171,955 |
|
|
$ |
195,612 |
|
| Valuation allowance change |
|
|
(171,955 |
) |
|
|
(195,612 |
) |
| Provision for income taxes |
|
$ |
- |
|
|
$ |
- |
|
The significant components of deferred income tax assets and liabilities at December 31, 2016 and 2015 are as follows:
| |
|
2016 |
|
|
2015 |
|
| Income tax recovery at statutory rate |
|
$ |
491,300 |
|
|
$ |
824,952 |
|
| Valuation allowance change |
|
|
(491,300 |
) |
|
|
(824,952 |
) |
| Provision for income taxes |
|
$ |
- |
|
|
$ |
- |
|
Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards for Federal income tax reporting purposes are subject to annual limitations. When a change in ownership occurs, net operating loss carry forwards may be limited.