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Income Tax

12 Months Ended

Jun. 30, 2014

NOTE 9 – INCOME TAX

At June 30, 2014, the Company had net deferred tax assets calculated at an expected rate of 25.00% (2013 – 25%) of approximately$1,971,711 (2013 - $1,919,073) principally arising from approximate net operating loss carry forward for income tax purposes, which expire in the years 2017 through 2034. As management of the Company cannot determine that it is more likely than not that the Company will realize the benefit of the net deferred tax asset, a valuation allowance equal to the net deferred tax asset has been recorded. The significant components of the deferred tax asset at June 30, 2014 and June 30, 2013 were as follows:

	June 30, 2014			June 30, 2013

Net operating loss carry forward	$	7,886,845		$	7,676,291

Deferred tax asset	$	1,971,711		$	1,919,073
Deferred tax asset valuation allowance	$	(1,971,711	)	$	(1,919,073	)
Net deferred tax asset	$	-		$	-

The change in the allowance account from June 30, 2013 to June 30, 2014 was approximately $53,000 (2013 - $10,000)

	June 30, 2014			June 30, 2013
Statutory rate		25.00	%		25.00	%
Income taxes recovered at the effective tax rate		52,638			10,411
Change in valuation allowance:		(52,638	)		(10,411	)
Income tax recovery (expense) recognized in year		-			-

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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