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INCOME TAXES
 6 Months Ended
Mar. 31, 2016
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES
 
The components of loss before income taxes, after adjusting the loss for non-controlling interests, are as follows:
 
 
Three months ended 
 March 31,
 
Six months ended 
 March 31,
 
2016
 
2015
 
2016
 
2015
United States
$
(682,000
)
 
$
(179,000
)
 
$
(1,408,000
)
 
$
(415,000
)
Canada
(1,190,000
)
 
(1,449,000
)
 
(2,066,000
)
 
(1,769,000
)
 
$
(1,872,000
)
 
$
(1,628,000
)
 
$
(3,474,000
)
 
$
(2,184,000
)

 
The components of the income tax provision (benefit) are as follows:
 
Three months ended 
 March 31,
 
Six months ended 
 March 31,
 
2016
 
2015
 
2016
 
2015
Current
$
(159,000
)
 
$
(350,000
)
 
$
(368,000
)
 
$
(347,000
)
Deferred
(105,000
)
 
739,000

 
(89,000
)
 
647,000

 
$
(264,000
)
 
$
389,000

 
$
(457,000
)
 
$
300,000


 
In the second quarter of fiscal 2015, Barnwell determined that it was not more likely than not that all of our oil and natural gas deferred tax assets under Canadian tax law were realizable due to significant declines in oil and natural gas prices, which in turn restricted funds available for the oil and natural gas capital expenditures needed to replace production and abate declining reserves. As a result, the Company recorded a valuation allowance of $785,000 during the quarter ended March 31, 2015 for the portion of Canadian tax law deferred tax assets related to asset retirement obligations that may not be realizable. Included in the deferred income tax benefit for the three and six months ended March 31, 2016, was a charge of $85,000 and $138,000, respectively, for the additional valuation allowance necessary for the portion of Canadian tax law deferred tax assets that may not be realizable.

Consolidated taxes do not bear a customary relationship to pretax results due primarily to the fact that the Company is taxed separately in Canada based on Canadian source operations and in the U.S. based on consolidated operations, Canadian income taxes are not estimated to have a future benefit as foreign tax credits or deductions for U.S. tax purposes, and U.S. consolidated net operating losses and other deferred tax assets under U.S. tax law are not estimated to have any future U.S. tax benefit. In addition, consolidated taxes include the aforementioned valuation allowances for a portion of deferred tax assets under Canadian tax law.