NOTE 7 – INCOME TAXES
A reconciliation of the expected income tax recovery to the actual income tax recovery is as follows:
| 2016 | 2015 | |||||||
| Net loss | $ | (297,509 | ) | $ | (87,035 | ) | ||
| Statutory tax rate | 34 | % | 34 | % | ||||
| Expected income tax recovery at statutory rate | (101,153 | ) | (29,592 | ) | ||||
| Non-deductible expenditures | 908 | 655 | ||||||
| Change in valuation allowance | 100,245 | 28,937 | ||||||
| Total income tax expense | $ | - | $ | - | ||||
The Company has the following deductible temporary differences:
| 2016 | 2015 | |||||||
| Deferred income tax assets: | ||||||||
| Non-capital loss carry-forward | $ | 151,960 | $ | 51,715 | ||||
| Total deferred income tax assets | 151,960 | 51,715 | ||||||
| Less: Valuation allowance | (151,960 | ) | (51,715 | ) | ||||
| Net deferred income tax asset | $ | - | $ | - | ||||
Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and carry-forwards are expected to be available to reduce taxable income. As the achievement of required future taxable income is uncertain, the Company recorded a valuation allowance.
The Company has non-capital losses of approximately $446,942 which expire between 2034 to 2036. Tax attributes are subject to review, and potential adjustment, by tax authorities.