(a) A reconciliation of income tax provision computed at Canadian statutory rates to the reported income tax provision is provided as follows:
| 2017 | 2016 | |||||||
| Net (loss) income for the year | $ | (1,960 | ) | $ | 6,791 | |||
| Canadian statutory tax rate | 26.0 | % | 26.0 | % | ||||
| Income tax expense (benefit) computed at statutory rates | $ | (510 | ) | $ | 1,766 | |||
| Temporary differences | 12 | 125 | ||||||
| Items not taxable/deductible for income tax purposes | 102 | (968 | ) | |||||
| Tax losses and tax offsets recognized/unrecognized in tax asset | 502 | (847 | ) | |||||
| Under (over) provided in prior years | - | (25 | ) | |||||
| Expired losses | 63 | - | ||||||
| Effect of change in tax rates | (107 | ) | - | |||||
| Impact of foreign exchange on tax assets and liabilities | (62 | ) | (51 | ) | ||||
| Deferred income tax recovery | $ | - | $ | - | ||||
Effective January 1, 2013, the Canadian federal corporate tax rate is 15% and the British Columbia provincial tax rate is 11% for a total Canadian statutory tax rate of 26%.
(b) The tax effected items that give rise to significant portions of the deferred income tax assets and deferred income liabilities at December 31, 2017 and 2016 are presented below:
| December 31, | ||||||||
| 2017 | 2016 | |||||||
| Deferred tax assets | ||||||||
| Non-capital losses carried forward | $ | - | $ | 25 | ||||
| Deferred tax assets | - | 25 | ||||||
| Deferred tax liabilities | ||||||||
| Held for trading securities | (25 | ) | ||||||
| Book value over tax value of property, plant and equipment | - | - | ||||||
| Book value over tax value of mineral properties | - | - | ||||||
| Deferred tax liabilities | - | - | ||||||
| Net deferred tax assets | $ | - | $ | - | ||||
(c) The Company recognizes tax benefits on losses or other deductible amounts where the probable criteria for the recognition of deferred tax assets have been met. The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consist of the following amounts:
| December 31, | ||||||||
| 2017 | 2016 | |||||||
| Non-capital losses | $ | 5,573 | $ | 4,095 | ||||
| Held for trading securities | 59 | - | ||||||
| Available for sale securities | 47 | 44 | ||||||
| Share issue costs | 173 | 195 | ||||||
| Unrealized foreign exchange | 186 | - | ||||||
| Tax value over book value of mineral properties | 7,262 | 6,721 | ||||||
| Tax value over book value of equipment | 1,345 | 1,242 | ||||||
| Unrecognized deductible temporary differences | $ | 14,645 | $ | 12,297 | ||||
As at December 31, 2017, the Company’s unrecognized unused non-capital losses have the following expiry dates:
| 2030 | $ | 262 | ||
| 2031 | 846 | |||
| 2032 | 907 | |||
| 2033 | 296 | |||
| 2034 | 885 | |||
| 2035 | 1,046 | |||
| 2036 | - | |||
| 2037 | 1,331 | |||
| $ | 5,573 |