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INCOME TAXES
 12 Months Ended
Dec. 31, 2021
Income taxes paid (refund) [abstract]  
INCOME TAXES [Text Block]

13. INCOME TAXES

The Company has $Nil in non-capital losses in the US that may be applied against future taxable income.

The tax effect items that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities at December 31, 2021 and 2020 are as follows:

    December 31,
2021		     December 31,
2020		  
Deferred income tax assets            
Non-capital loss carry-forwards $ 216,826   $ 22,609  
Deferred income tax assets $ 216,826   $ 22,609  
Deficiency (excess) of carrying value over tax value
of property, plant and equipment		 $ (216,826 ) $ -  
Excess of carrying value over tax value of intangible assets   -     (22,609 )
Deferred income tax liability $ (216,826 ) $ (22,609 )
Net deferred tax asset (liability) $ -   $ -  

 

Significant unrecognized tax benefits and unused tax losses for which no deferred tax assets is recognized as of December 31, 2021 and 2020 are as follows:

 

    December 31,
2021 		    December 31,
2020		  
Excess of tax value over carrying value of mineral properties $ 1,135   $ 1,536  
Non-capital losses carried forward   1,411,411     936,086  
Property, plant and equipment   -     14,809  
Intangible assets   49,992     -  
Lease liability   77,682     40,297  
Unrecognized deductible temporary differences $ 1,540,220   $ 992,728  

 

Income tax expense differs from the amount that would be computed by applying the Canadian statutory income tax rate of 27.00% (2020 - 27.00%; 2019 - 27.00%) to income (loss) before income taxes as follows:

 

    December 31,
2021 		    December 31,
2020		     December 31,
2019		  
Income (loss) before income taxes $ (2,758,567 ) $ (1,307,890 ) $ 3,334,043  
Statutory income tax rate   27.00%     27.00%     27.00%  
Income tax (benefit) liability computed at statutory tax rate   (744,813 )   (353,130 )   900,192  
Items not deductible for income tax purposes   (107,916 )   147,116     (12,564 )
Under provision of taxes in prior years   99,873     (84,532 )   36,225  
Change in timing differences   91,007     499,718     135,130  
Impact of foreign exchange on tax assets and liabilities   4,444     (7,163 )   (39,116 )
Unused tax losses and tax offsets not recognized   813,044     33,082     (983,204 )
Income tax expense   155,639     235,091     36,663  
Penalties and interest included in income tax expense   -     -     27,989  
Texas margin tax and branch tax   17,000     13,901     34,425  
Income tax expense $ 172,639   $ 248,992   $ 99,077