INCOME TAX

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

9. INCOME TAX

Potential benefits of income tax losses have not been recognized in these consolidated financial statements because the Corporation cannot be assured it is more likely-than-not it will utilize the net operating losses carried forward in future years.

Income tax recovery differs from that which would be expected by applying the effective rates to net loss as follows:

For the Year Ended June 30, 2018
	$
Net loss for the year		(191,392	)
Statutory and effective rates		21	%
Income tax recovery at effective rate		(40,192	)
Effect of change in tax rate on deferred taxes		645,426
Change in unrecognized deductible temporary differences		(605,234	)
Corporate income tax recovery recognized in the accounts		-

The Corporation has $16,327,053 of loss carry forwards in the United States that expires between 2017 and 2038. The components of the net deferred tax asset are below:

As at June 30, 2018
	$
Non-capital losses carried forward		16,327,053
Deferred tax asset value		3,428,681
Valuation allowance		(3,428,681	)
Deferred tax assets recognized		-