The following table reconciles the expected income taxes (recovery) at the Canadian statutory income tax rates to the amounts recognized in the statements of financial position as at 31 December 2017 and 2016. The presentation of the prior year income tax note has been updated to conform with the current year presentation.
31 December 2017 |
31 December 2016 |
|||||||
| Net loss and comprehensive loss for the year | $ | 314,338 | $ | (272,193 | ) | |||
| Statutory income tax rate | 26.00 | % | 26.00 | % | ||||
| Deferred tax (recovery) | 81,728 | (70,770 | ) | |||||
| Differences resulting from: | ||||||||
| Non-deductible items | 5,531 | 4,391 | ||||||
| Change in estimates | (22,138 | ) | 44,611 | |||||
| Losses expired | - | 17,052 | ||||||
| Foreign tax rate difference | - | (29,048 | ) | |||||
| Change in deferred tax asset not recognized and others | (65,121 | ) | 33,764 | |||||
| Provision for income taxes | $ | - | $ | - | ||||
Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their corresponding values for tax purposes. The unrecognized deductible temporary differences are as follows:
31 December 2017 |
31 December 2016 |
|||||||
| Canada | ||||||||
| Non-capital loss carryforwards | $ | 7,032,919 | $ | 6,489,308 | ||||
| Exploration and evaluation assets | 10,485,844 | 9,861,577 | ||||||
| Capital losses | 15,731 | 14,699 | ||||||
| Property and equipment | 11,556 | 17,591 | ||||||
| Financial instrument | - | 14,850 | ||||||
| Investment tax credit | 58,463 | 54,627 | ||||||
| Financing cost | 321 | 756 | ||||||
| Unrecognized deductible temporary differences | 17,604,834 | 16,453,408 | ||||||
| USA | ||||||||
| Net operating loss carryforwards | $ | 25,290,182 | $ | 25,171,390 | ||||
| Property and equipment | 84,433 | 104,260 | ||||||
| Mineral property | 1,269,948 | 1,719,145 | ||||||
| Unrecognized deductible temporary differences | 26,644,563 | 26,994,795 | ||||||
The Company has non-capital loss carryforwards of $7,032,919 (2016 - $6,489,308) which may be carried forward to apply against future year income tax for Canadian income tax purposes, subject to the final determination by taxation authorities, expiring in the following years:
| Year of Expiry | Taxable Loss | |||
| 2026 | 1,317,832 | |||
| 2027 | 1,469,041 | |||
| 2028 | 928,047 | |||
| 2029 | 894,907 | |||
| 2030 | 577,424 | |||
| 2031 | 635,629 | |||
| 2032 | 851,237 | |||
| 2033 | 176,918 | |||
| 2035 | 115,755 | |||
| 2036 | 66,129 | |||
| Total | $ | 7,032,919 | ||
In addition, the Company has capital losses of approximately $39,471, which may be carried forward indefinitely to reduce future capital gains.
The Company has net operating loss carryforwards of $25,290,182 (2016 -$25,171,390) which may be carried forward to apply against future year income tax for US tax purposes, as follows:
| Year of Expiry | Taxable Loss | |||
| 2018 | 419,779 | |||
| 2019 | 363,828 | |||
| 2020 | 266,513 | |||
| 2021 | 153,755 | |||
| 2022 | 289,940 | |||
| 2023 | 228,989 | |||
| 2024 | 1,582,719 | |||
| 2025 | 1,056,097 | |||
| 2026 | 1,063,847 | |||
| 2027 | 1,441,550 | |||
| 2028 | 1,999,239 | |||
| 2029 | 1,334,762 | |||
| 2030 | 1,700,442 | |||
| 2031 | 1,721,728 | |||
| 2032 | 1,336,369 | |||
| 2033 | 1,317,217 | |||
| 2034 | 1,271,214 | |||
| 2035 | 1,017,605 | |||
| 2036 | 6,572,916 | |||
| 2037 | 151,673 | |||
| Total | $ | 25,290,182 | ||