INCOME TAXES

12 Months Ended

Dec. 31, 2018

INCOME TAXES [Text Block]

9. INCOME TAXES

Effective January 1, 2018, the enacted statutory tax rate is 21%. The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company’s income tax expense as reported is as follows :

		December 31,			December 31,
		2018			2017
Net income (loss) for the year	$	(770,853	)	$	71,040
Statutory rate		21%			35%
Expected income tax expense (recovery)		(162,000	)		25,000
Impact of statutory tax rate on earnings of subsidiary		(26,000	)		(8,000	)
Non-taxable earnings		24,000			(23,000	)
Effect of change of future enacted tax rate		-			998,000
Effect of foreign exchange on tax assets		-			13,000
Adjustment to prior year tax provision		1,000			(59,000	)
Change in valuation allowance		151,000			(946,000	)
	$	(12,000	)	$	-

The significant components of deferred income tax assets at December 31, 2018 and December 31, 2017 are as follows:

		December 31,			December 31,
		2018			2017
Net operating losses	$	1,706,000		$	1,567,000
Intangible assets		67,000			55,000
		1,773,000			1,622,000
Valuation allowance		(1,773,000	)		(1,622,000	)
	$	-		$	-

At December 31, 2018, the Company had accumulated non-capital loss carry-forwards of approximately $7,400,000 that expire from 2025 through 2037. The potential future tax benefits of these expenses and losses carried-forward have not been reflected in these financial statements due to the uncertainty regarding their ultimate realization. Tax attributes are subject to review, and potential adjustment by tax authorities.