| Income Tax [Text Block] |
|
17.
|
Income Tax
|
| |
|
| |
The following table reconciles the income tax benefit at the U.S. Federal statutory rate to income tax benefit at the Company’s effective tax rates as at August 31, 2017 and 2016:
|
| |
|
|
August 31 |
|
|
August 31 |
|
| |
|
|
2017 |
|
|
2016 |
|
| |
|
|
$ |
|
|
$ |
|
| |
|
|
|
|
|
|
|
| |
Loss before taxes |
|
(1,933,473
|
) |
|
(1,277,249
|
) |
| |
Expected income tax recovery |
|
(676,716
|
) |
|
(447,037
|
) |
| |
Non-deductible items |
|
242,716
|
|
|
101,040
|
|
| |
Change in estimates |
|
(174,135
|
) |
|
(897,713
|
) |
| |
Change in valuation allowance |
|
608,216
|
|
|
1,243,710
|
|
| |
Total income taxes |
|
-
|
|
|
-
|
|
Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes. Deferred tax assets at August 31, 2017 and 2016 are comprised of the following:
| |
|
|
August 31 |
|
|
August 31 |
|
| |
|
|
2017 |
|
|
2016 |
|
| |
|
|
$ |
|
|
$ |
|
| |
|
|
|
|
|
|
|
| |
Non-capital losses |
|
4,567,920
|
|
|
3,959,704
|
|
| |
Valuation allowance |
|
(4,
567,920
|
) |
|
(3,959,704
|
) |
| |
Net deferred tax assets recognized |
|
-
|
|
|
-
|
|
The Company has net operating loss carryforwards of approximately $13,051,000
which may be carried forward to apply against future year income tax for U.S. tax purposes.
| Year |
|
Amount |
|
| 2025 |
|
76,000
|
|
| 2026 |
|
508,000
|
|
| 2027 |
|
1,056,000
|
|
| 2028 |
|
720,000
|
|
| 2029 |
|
753,000
|
|
| 2030 |
|
552,000
|
|
| 2031 |
|
538,000
|
|
| 2032 |
|
252,000
|
|
| 2033 |
|
344,000
|
|
| 2034 |
|
3,257,000
|
|
| 2035 |
|
2,268,000
|
|
| 2036 |
|
989,000
|
|
| 2037 |
|
1,738,000
|
|
| |
|
13,051,000
|
|
|
|
18.
|
Income Tax
|
| |
|
| |
The following table reconciles the income tax benefit at the U.S. Federal statutory rate to income tax benefit at the Company’s effective tax rates as at August 31, 2016 and 2015:
|
| |
|
|
August 31 |
|
|
August 31 |
|
| |
|
|
2016 |
|
|
2015 |
|
| |
|
|
$ |
|
|
$ |
|
| |
|
|
|
|
|
|
|
| |
Loss before taxes |
|
(1,277,249
|
) |
|
(1,934,352
|
) |
| |
Income tax rate |
|
35.00%
|
|
|
35.00%
|
|
| |
Expected income tax recovery |
|
(447,037
|
) |
|
(677,023
|
) |
| |
Non-deductible items |
|
101,040
|
|
|
98,765
|
|
| |
Change in estimates |
|
(897,713
|
) |
|
646,711
|
|
| |
Change in valuation allowance |
|
1,243,710
|
|
|
(68,453
|
) |
| |
Total income taxes |
|
-
|
|
|
-
|
|
Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes. Deferred tax assets at August 31, 2016 and 2015 are comprised of the following:
| |
|
|
August 31 |
|
|
August 31 |
|
| |
|
|
2016 |
|
|
2015 |
|
| |
|
|
$ |
|
|
$ |
|
| |
|
|
|
|
|
|
|
| |
Non-capital losses |
|
3,959,704
|
|
|
2,715,994
|
|
| |
Valuation allowance |
|
(3,959,704
|
) |
|
(2,715,994
|
) |
| |
Net deferred tax assets recognized |
|
-
|
|
|
-
|
|
The Company has net operating loss carryforwards of approximately $11,313,000
which may be carried forward to apply against future year income tax for U.S. tax purposes.
| Year |
Amount |
| 2025 |
76,000
|
| 2026 |
508,000
|
| 2027 |
1,056,000
|
| 2028 |
720,000
|
| 2029 |
753,000
|
| 2030 |
552,000
|
| 2031 |
538,000
|
| 2032 |
252,000
|
| 2033 |
344,000
|
| 2034 |
3,257,000
|
| 2035 |
2,268,000
|
| 2036 |
989,000
|
| |
11,313,000
|
|