| 13. | Income taxes |
The Company recognized a current income tax recovery of $9,392,836 for the year ended December 31, 2017 (2016 – expense of $501,315; 2015 – nil).and a deferred income tax expense of $333,187 for the year ended December 31, 2017 (2016 – recovery of $331,095; 2015 – recovery of $379,000).
As at December 31, 2017 and 2016, deferred tax assets and liabilities have been recognized with respect to the following items:
| As at December 31 | 2017 | 2016 | ||||||
| Deferred tax assets | ||||||||
| Non-capital loss carryforwards | $ | 326,108 | $ | 701,000 | ||||
| Total deferred tax assets | $ | 326,108 | $ | 701,000 | ||||
| Deferred tax assets/(liabilities) | ||||||||
| Non-capital loss carryforwards | $ | - | $ | 1,101,000 | ||||
| Research and development credits | - | 922,000 | ||||||
| Intangible assets | - | (38,720,000 | ) | |||||
| Other | - | (1,446,000 | ) | |||||
| Total deferred tax liabilities | $ | - | $ | (38,143,000 | ) | |||
As at December 31, 2017 and 2016, deferred tax assets have not been recognized with respect to the following items:
| As at December 31 | 2017 | 2016 | ||||||
| Deferred tax assets | ||||||||
| Non-capital loss carryforwards | $ | - | $ | 6,449,000 | ||||
| Scientific research and experimental development | 3,574,000 | 3,793,000 | ||||||
| Other | 315,000 | 256,000 | ||||||
| Total deferred tax assets | $ | 3,889,000 | $ | 10,498,000 | ||||
The reconciliation of the Canadian statutory rate to the income tax rate applied to the net income before discontinued operations for the years ended December 31, 2017, 2016 and 2015 to the income tax expense is as follows:
| Year ended December 31 | 2017 | 2016 - Restated | 2015 | |||||||||
| Income (loss) for the year | ||||||||||||
| Canadian | $ | (2,178,334 | ) | $ | (4,012,706 | ) | $ | (2,972,573 | ) | |||
| Foreign | 4,615,378 | 7,807,249 | 4,262,002 | |||||||||
| $ | 2,437,044 | $ | 3,794,543 | $ | 1,289,429 | |||||||
| Year ended December 31 | 2017 | 2016 - Restated | 2015 | |||||||||
| Canadian federal and provincial income taxes at 27% (2016 – 27%; 2015 – 27%) | $ | (658,000 | ) | $ | (1,025,000 | ) | $ | (348,000 | ) | |||
| Permanent differences and other items | (335,000 | ) | (758,000 | ) | (537,000 | ) | ||||||
| Foreign tax rate in foreign jurisdictions | 656,000 | 2,159,000 | 652,000 | |||||||||
| Change in unrecognized deferred tax assets | 9,397,000 | (546,000 | ) | 612,000 | ||||||||
| $ | 9,060,000 | $ | (170,000 | ) | $ | 379,000 | ||||||
The foreign tax rate differential is the difference between the Canadian federal and provincial statutory income tax rate and the tax rates in Barbados (2.50%), Mauritius (15.00%), Ireland (12.50%), India (33.06%) and the United States (38.00%) that is applicable to income or losses incurred by the Company's subsidiaries.
At December 31, 2017, the Company has the following Barbados losses available for application in future years:
| 2018 | $ | 8,366,000 | ||
| 2019 | 2,278,000 | |||
| 2020 | 1,169,000 | |||
| 2022 | 1,231,000 | |||
| $ | 13,044,000 |