Annual report pursuant to Section 13 and 15(d)

Income Tax

v2.4.0.6
Income Tax
 12 Months Ended
Oct. 31, 2011
Income Tax [Text Block]
11.

Income Tax

   
 

The Company’s provision for income taxes comprise of the following:


      2011     2010  
  Current Tax Provision $  Nil   $  Nil  
  Deferred Tax Provision $  Nil   $  Nil  
  Tax Expense $  Nil   $  Nil  

Rate Reconciliation

Income taxes vary from the amount that would be computed by applying the statutory federal income tax rate of 35%.

      2011     2010  
  U.S. Federal Statutory Rate $  (125,453 ) $  (132,973 )
  Tax Benefit Not Recognized $  125,453   $  132,973  
  Tax Expenses $  Nil   $  Nil  

The tax effects of temporary differences that give rise to the Company’s deferred tax asset (liability) are as follows:

      2011     2010  
  Deferred Tax Assets:            
  Net Operating Loss Carry forward $  1,408,175   $  1,191,357  
  Valuation Allowance $  (1,408,175 ) $  (1,191,357 )
  Net Deferred Tax Assets $  Nil   $  Nil  

Changes in the valuation allowance relate primarily to net operating losses, resources expenditures and others which are not currently recognized. The Company has reviewed its net deferred tax assets and has not recognized potential tax benefits arising there from because at this time management believes it is more likely than not that the benefits will not be realized in future year.

For tax purpose, as of October 31, 2011, the Company has operating loss carry forwards of approximately $4,023,000 which expire in 2025 through 2031 as follow:

Year   Amount  
2025 $  76,000  
2026   508,000  
2027   1,056,000  
2028   720,000  
2029   753,000  
2030   552,000  
2031   358,000  
       
Total $  4,023,000