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NOTE 17: INCOME TAXES
12 Months Ended
Dec. 31, 2018
Note 17 Income Taxes  
INCOME TAXES

NOTE 17: INCOME TAXES

 

a)Rate reconciliation

 

Income tax expense differs from the amount that would result by applying the combined Canadian federal and provincial income tax rates to earnings before income taxes. The reconciliation of the combined Canadian federal and provincial statutory income tax rate of 27% (2017 - 26%, 2016 – 26%) to the effective tax rate is as follows:

   Years ended December 31,
   2018  2017  2016
Loss before taxes  $(3,789,918)  $(3,109,921)  $(1,669,736)
Combined Canadian federal and provincial income tax rates   27%    26%    26% 
Expected income tax recovery   (1,023,280)   (808,580)   (434,130)
Items that cause an increase (decrease):               
Effect of different tax rates in foreign jurisdiction   35,690    (219,015)   (52,060)
Non-deductible expenses   294,780    10,988    32,390 
Tax rate changes   152,650    233,990    1,834 
Change in prior year estimates       165,538     
Other   1,690    (561)    
Change in unrecognized deferred income tax assets   538,470    617,640    295,670 
Income tax recovery  $   $   $78,146 

 

b)Unrecognized deferred tax assets and liabilities

 

Deferred taxes are provided as a result of temporary differences that arise due to the differences between the income tax values and the carrying amount of assets and liabilities. Deferred tax assets have not been recognized in respect of the following deductible temporary differences:

 

   As at December 31,
   2018  2017
Deferred tax assets:          
Non-capital losses   7,291,370   $4,357,960 
Property and equipment   59,640    7,010 
Intangible assets   366,070    225,750 
Accrued professional fees   23,000     
Accrued compensation   34,378     
Convertible debenture       569,010 
Share issue costs   179,640    12,000 
Capital losses carried forward   5,417     
Unrealized foreign exchange loss issuance costs   1,880    1,880 
Deferred tax assets, net   7,961,384   $5,173,610