6. Income Taxes
The Company has net operating losses carried forward of $860,205 available to offset taxable income in future years which commence expiring in fiscal 2032.
The Company is subject to United States federal and state income taxes at an approximate rate of 34%. The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company’s income tax expense as reported is as follows:
| 2017 $ |
2016 $ |
|||||||
| Income tax provision (recovery) at statutory rate | 80,231 | (62,799 | ) | |||||
| Permanent differences and other | – | 834 | ||||||
| Valuation allowance | (80,231 | ) | 61,965 | |||||
| Provision for income taxes | – | – | ||||||
The significant components of deferred income tax assets and liabilities as at March 31, 2017 and 2016 are as follows:
| 2017 $ |
2016 $ |
|||||||
| Net operating losses carried forward | 292,470 | 372,701 | ||||||
| Resource pools | 14,944 | 14,944 | ||||||
| Valuation allowance | (307,414 | ) | (387,645 | ) | ||||
| Net deferred income tax asset | – | – | ||||||