As at November 30, 2016, the Company has $827,000 of net operating losses carried forward to offset taxable income in future years which expire commencing in fiscal 2030. The income tax benefit differs from the amount computed by applying the US federal income tax rate of 34% to net loss before income taxes. As at November 30, 2016, the Company had no uncertain tax positions and has not filed tax returns since its inception. All prior tax years from inception will be subject to examination by major tax jurisdictions when they are filed.
| 2016 $ | 2015 $ | |||||||
| Net loss before taxes | (170,176 | ) | (679,466 | ) | ||||
| Statutory rate | 34% | 34% | ||||||
| Computed expected tax recovery | (57,860 | ) | (231,017 | ) | ||||
| Permanent differences | – | 114,177 | ||||||
| Redetermination of prior year taxes | (86,588 | ) | – | |||||
| Change in Valuation allowance | 144,448 | 116,840 | ||||||
| Income tax provision | – | – | ||||||
The significant components of deferred income tax assets and liabilities at November 30, 2016 and 2015 are as follows:
| 2016 $ | 2015 $ | |||||||
| Net operating losses carried forward | 281,180 | 248,445 | ||||||
| Related party share based compensation | 21,498 | – | ||||||
| Share based compensation | 58,269 | – | ||||||
| Payables to related parties | 31,946 | – | ||||||
| Valuation allowance | (392,893 | ) | (248,445 | ) | ||||
| Net deferred income tax asset | – | – | ||||||