| 8. | Income Tax |
Income tax recovery differs from that which would be expected from applying the effective tax rates to the net loss as follows:
| 2017 | 2016 | |||||||
| Net loss for the year | $ | (46,340 | ) | $ | (28,395 | ) | ||
| Statutory and effective tax rate | 36 | % | 36 | % | ||||
| Income tax recovery at effective rate | $ | (16,220 | ) | $ | (9,940 | ) | ||
| Effective of permanent differences | 470 | - | ||||||
| Income tax benefit not recognized | (15,750 | ) | 9,940 | |||||
| Income tax recovery and income tax asset recognized | $ | - | $ | - | ||||
The Company has accumulated non-capital income tax losses of $219,009. Under normal circumstances the losses will expire in the years 2031 to 2038.
As at August 31, 2017, the tax effect of the temporary timing differences that give rise to significant components of deferred income tax asset are noted below. A valuation allowance has been recorded as management believes it is more likely than not that the deferred income tax asset will not be realized.
| Income tax attributes | 2017 | 2016 | ||||||
| Income tax losses carried forward | $ | 219,009 | $ | 174,002 | ||||
| Deferred income tax assets | $ | 78,840 | $ | 60,900 | ||||
| Valuation allowance | (78,840 | ) | (60,900 | ) | ||||
| Deferred income tax asset recognized | $ | - | $ | - | ||||