Annual report pursuant to Section 13 and 15(d)

Income Tax

v3.20.2
Income Tax
12 Months Ended
Aug. 31, 2020
Income Tax Disclosure [Abstract]  
Income Tax
20. 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, 2020 and 2019:

 

 

 

August 31

2020

$

 

 

August 31

2019

$

 
           

 

Loss before taxes

 

 

(3,987,018

)

 

 

(4,158,413

)

Expected income tax recovery

 

 

(856,424

)

 

 

(883,841

)

Non-deductible items

 

 

200,573

   

 

8,544

 

Change in estimates

 

 

92,083

   

 

948

 

Effect of changes in foreign and long-term tax rates

 

 

   

 

 

Change in valuation allowance

 

 

566,087

   

 

892,013

 

Total income taxes

 

 

2,319

   

 

17,664

 
 

 

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, 2020 and 2019 are comprised of the following:

 

 

 

August 31

2020

$

 

 

August 31

2019

$

 

Non-capital losses

 

 

5,588,526

 

 

 

5,022,440

 

Marketable securities

 

 

2,300

 

 

 

2,300

 

Total unrecognized deferred tax assets

 

 

5,590,826

 

 

 

5,024,740

 

 

 

The Company has net operating loss carry-forwards of approximately $26,891,000 which may be carried forward to apply against future year income tax for U.S. tax purposes.

 

Year

Amount

Canada

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

1,934,000

2036

1,150,000

2037

1,857,000

2038

2039

242,000

2040

309,000

Indefinite

13,343,000

 

26,340,000

551,000

Total

 

26,891,000