INCOME TAXES

12 Months Ended

Aug. 31, 2019

Notes to Financial Statements [Abstract]

20. INCOME TAXES

The income taxes shown in the consolidated earnings differ from the amounts obtained by applying statutory rates to the earnings before provision for income taxes due to the following:

		2019			2018			2017

Loss before income taxes	$	16,670		$	40,024		$	588,716

Income tax recovery at statutory rates		(4,503	)		(10,941	)		(153,066	)
Difference of foreign tax rates		(2	)		(231	)		(11,774	)
Non-deductible expenses and non-taxable portion of capital gains		1,316			358			158,059
Changes in unrecognized deferred tax assets and other		3,295			10,814			8,436
Income tax expense (recovery)		106			-			1,655

Income tax expense (recovery) consists of:
Current income taxes	$	-		$	-		$	-
Deferred income taxes		106			-			1,655
	$	106		$	-		$	1,655

The gross movement on the net deferred income tax account is as follows:
		2019			2018			2017
Deferred tax liability at the beginning of the year	$	-		$	-		$	-
Tax recovery relating to the loss (income) from continuing operations					(15,527	)		(1,655	)
Tax (expense) recovery relating to components of other comprehensive income		(106	)		-			1,655
Tax (expense) recovery recorded in deficit		(106	)		15,527			-
Deferred tax liability at the end of the year	$	-		$	-		$	-

The significant components of the Company's net deferred income tax liabilities are as follows:

		2019			2018			2017
Convertible notes	$	(1,024	)		-		$	-
Loans payable		(339	)		-			-
Mineral properties		(2,354	)		(2,434	)		(4,635	)
Loss carry-forwards		3,717			2,434			4,635
	$	-		$	-		$	-

Unrecognized deductible temporary differences, unused tax losses and unused tax credits are attributed to the following:


		2019		2018		2017
Tax Losses:
Operating loss carry-forwards - Canada	$	125,851	$	106,058	$	85,898
Operating loss carry-forwards - South Africa		28,925		23,026		204,500
Net capital loss carry-forwards		204		621		-
	$	154,980	$	129,705	$	290,398

Temporary Differences:
Mineral properties	$	7,526	$	7,664	$	305,515
Financing Costs		13,357		18,831		16,481
Property, plant and equipment		807		735		692
Other		381		254		368
	$	22,071	$	27,484	$	323,056


Investment Tax Credits:	$	312	$	318	$	331

The Company's Canadian operating loss carry-forwards expire between 2026 and 2039. The Company's South African operating loss carry-forwards do not expire. The Company's Canadian unused investment tax credit carry-forwards expire between 2029 and 2035. The Company's Canadian net capital loss carry-forwards do not expire.