Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes [Text Block]

6.  Income Taxes

The Company accounts for income taxes under the FASB Accounting Standards Codification Topic 740, Income taxes. Under Topic 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under FASB Accounting Standards Codification Topic 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The provision for income taxes has been computed as follows:

	2012		2011
	$		$
Expected income tax recovery (expense) at the statutory rate of 34%	43,592		14,402
Tax effect of expenses that are not deductible for income tax purpose (net of other amounts deductible for tax purposes)	(24,365	)	(4,053	)
Change in valuation allowance	(19,227	)	(10,349	)
Provision for income taxes	-		-
The components of deferred income taxes are as follows:
	2012		2011
	$		$
Deferred income tax asset:
Net operating loss carryforwards	2,417,803		2,398,576
Valuation allowance	(2,417,803	)	(2,398,576	)
Deferred income taxes	-		-

The Company has tax losses available to be applied against future taxable income through 2032 and 2031, respectively. The net change in the valuation allowance for the years ended December 31, 2012 and 2011 was an increase of $ $19,227 and $10,349 respectively. Due to the losses incurred in the current year and expected future operating results, management determined that it is more likely than not that the deferred tax asset resulting from the tax losses available for carryforward will not be realized through the reduction of future income tax payments. Accordingly, a 100% valuation allowance has been recorded for the deferred income tax asset.

The Organization's income tax returns for years 2009 - 2012 are currently open for review by statute by the Internal Revenue Service. However, there are no examinations currently in progresses and the Company is not aware of any pending audits. The Company has filed all income tax returns.