NOTE 6–INCOME TAXES
A reconciliation of the expected income tax recovery to the actual income tax recovery is as follows:
| 2016 | 2015 | |||||||
| Net loss | $ | (168,911 | ) | $ | (113,636 | ) | ||
| Statutory tax rate | 34 | % | 34 | % | ||||
| Expected income tax recovery at statutory rate | (57,430 | ) | (38,636 | ) | ||||
| Non-deductible expenditures | 839 | 753 | ||||||
| Share issue costs | - | 774 | ||||||
| Other | 456 | (774 | ) | |||||
| Change in unrecognized deferred assets | 56,135 | 36,883 | ||||||
| Total income tax expense | $ | - | $ | - | ||||
The Company has the following deductible temporary differences:
| 2016 | 2015 | |||||||
| Deferred income tax assets (liabilities): | ||||||||
| Share issuance costs | $ | (1,367 | ) | $ | (455 | ) | ||
| Non-capital loss carry-forward | 95,385 | 38,338 | ||||||
| Total deferred income tax assets | 94,018 | 37,883 | ||||||
| Less: Valuation allowance | (94,018 | ) | (37,883 | ) | ||||
| 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.
As at December 31, 2016, the Company has non-capital losses of approximately $281,000 (2015 – $113,000) which will expire between 2035 to 2036.