A reconciliation of income tax expense to the amount computed at the statutory rates is as follows:
| 2017 | 2016 | |||||||
| Operating loss for the years ended July 31 | $ | 1,801,080 | $ | (10,006,245 | ) | |||
| Average statutory tax rate | 34 | % | 34 | % | ||||
| Deferred tax Liability (asset) attributable to net operating loss carry-forwards | $ | 612,367 | $ | (3,402,123 | ) | |||
Significant components of the Company’s deferred tax assets and liabilities as at July 31, 2017 after applying enacted corporate tax rates, are as follows:
| 2017 | ||||
| Deferred tax asset attributable to net operating loss carry-forwards | $ | 612,367 | ||
| Less: valuation allowance | $ | (3,402,123 | ) | |
| Net deferred income tax assets | $ | (2,789,756 | ) | |
The Company has net operating losses carried forward of approximately $2,789,756 for tax purpose which may be recognized in future periods, not to exceed 20 years.