Income Taxes

12 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

11. Income Taxes

Income tax expense differs from the amount that would result from applying the federal income tax rate to earnings before income taxes. During the years ended 30 June 2014, 2013 and 2012, these differences result from the following items:

	2014	2013	2012
	$	$	$
Loss before income taxes	(116,928)	(209,900)	(179,382)
Federal income tax rates	35.0%	35.0%	34.0%
Income tax recovery based on the above rates	(40,925)	(73,465)	(60,990)
Increase (decrease) due to:
Difference between U.S. and foreign tax rates	3,251	8,124	5,215
Change in tax rates	-	(7,567)	-
Change in valuation allowance	49,520	17,041	39,496
Foreign exchange and other	(11,846)	55,867	16,279
Income tax expense	-	-	-

The composition of the Company’s deferred tax assets as at 30 June 2014 and 30 June 2013 are as follows:

	2014	2013
	$	$
Net income tax operating loss carry-forward	2,281,689	2,125,274
Deferred tax assets	727,309	677,789
Less: Valuation allowance	(727,309)	(677,789)
Net deferred tax asset	-	-

The Company has non-capital loss carry-forwards of approximately $2,281,689 that may be available for tax purposes. The loss carry-forwards are all in respect to U.S. and Australian operations and expire as follows:

	$
2022	20,402
2023	46,992
2024	27,717
2025	14,187
2026	261,311
2027	111,155
2028	75,463
2029	57,882
2030	48,765
2031	43,836
2032	49,005
2033	47,415
2034	51,916
No expiry	1,425,643
	2,281,689

A full valuation allowance has been recorded against the potential deferred tax assets associated with all the loss carry-forwards as their utilization is not considered more likely than not at this time.