| 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, 2019 and 2018: |
|
|
|
August 31
2019
$
|
|
|
August 31
2018
$
|
|
|
|
|
|
|
|
|
|
Loss before taxes
|
|
|
(4,158,413
|
)
|
|
|
(6,609,187
|
)
|
|
Expected income tax recovery
|
|
|
(883,841
|
)
|
|
|
(1,322,068
|
)
|
|
Non-deductible items
|
|
|
8,544
|
|
|
|
2,724
|
|
|
Change in estimates
|
|
|
948
|
|
|
|
(54,057)
|
|
|
Effect of changes in foreign and long-term tax rates
|
|
|
-
|
|
|
|
1,816,659
|
|
|
Change in valuation allowance
|
|
|
874,349
|
|
|
|
(443,258
|
)
|
|
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, 2019 and 2018 are comprised of the following:
|
|
|
|
August 31
2019
$
|
|
|
August 31
2018
$
|
|
|
Non-capital losses
|
|
|
5,022,441
|
|
|
|
4,130,915 |
|
|
Marketable securities
|
|
|
2,300 |
|
|
|
1,789 |
|
|
Property plant and equipment
|
|
|
- |
|
|
|
24 |
|
|
Total unrecognized deferred tax assets
|
|
|
5,024,741
|
|
|
|
4,132,728 |
|
|
The Company has net operating loss carry-forwards of approximately $24,457,000 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
|
|
|
1,934,000
|
|
|
2036
|
|
|
1,150,000
|
|
|
2037
|
|
|
1,857,000
|
|
|
Indefinite
|
|
|
11,249,000
|
|
|
|
|
|
24,246,000
|
|
|