| 13. |
DEFERRED INCOME TAXES |
| a) |
A reconciliation of income tax provision computed at Canadian statutory rates to the reported income tax provision is provided as follows: |
| 2017 | 2016 | |||||
| Loss for the year | $ | (1,240 | ) | $ | ( 1,865 | ) |
| Canadian statutory tax rate | 26% | 26% | ||||
| Income tax benefit computed at statutory rates | (323 | ) | (485 | ) | ||
| Foreign tax rates different from statutory rates | (29 | ) | (145 | ) | ||
| Other | - | (77 | ) | |||
| Rate difference between current and deferred taxes | 4,312 | (138 | ) | |||
| Foreign exchange gains or losses | (425 | ) | - | |||
| Permanent differences | (33 | ) | 513 | |||
| Change in unused tax losses and tax offsets | (3,502 | ) | 332 | |||
| $ | - | $ | - |
The Company recognizes tax benefits on losses or other deductible amounts generated in countries where it is probable the deferred tax assets will be recovered. The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consist of the following amounts:
| 2017 | 2016 | |||||
| Non-capital losses | $ | 9,255 | $ | 33,583 | ||
| Capital loss | 2,337 | - | ||||
| Tax value over book value of mineral properties | 3,352 | 4,329 | ||||
| Tax value over book value of equipment | 12 | 69 | ||||
| Tax value over book value of investments and share issue costs | 16 | 90 | ||||
| Unrecognized deductible temporary differences | $ | 14,972 | $ | 38,071 |
The Company’s unused non-capital losses expire as follows:
| Canada | United States | |||||
| 2022 - 2026 | $ | 557 | $ | 713 | ||
| 2027 - 2036 | 18,313 | 19,098 | ||||
| Total | $ | 18,870 | $ | 19,811 |
The Company’s unused capital losses of $17.3 million are available to carry forward indefinitely.