INCOME TAXES

12 Months Ended

Aug. 31, 2012

INCOME TAXES [Text Block]

12. INCOME TAXES

The following table reconciles the expected income taxes expense (recovery) at the statutory income tax rates to the amounts recognized in the consolidated statements of operations for the years ended August 31, 2012 and 2011:

		2012			2011
Income (Loss) Before Taxes	$	(1,009,735	)	$	(165,405	)
Statutory tax rate		34%			34%
Expected income tax (recovery)		(343,310	)		(56,238	)
Non-deductible items		(98,941	)		87,039
Change in estimates		(768,796	)		(213,541	)
Change in valuation allowance		1,211,047			182,740
Income tax expense (recovery)	$	-		$	-

Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes. Deferred tax assets (liabilities) at August 31, 2012, 2011, and 2010 are comprised of the following:

		2012		2011			2010
Non capital loss carryforwards	$	1,775,838	$	831,480		$	648,830
Marketable Securities		104,864		(92,114	)		(80,950	)
Financial Instrument		-		(10,177	)		3,575
Mineral Properties		59,535		-			-
		1,940,237		729,189			571,455
Valuation Allowance		1,940,237		729,189			571,455
Deferred Tax Assets (Liabilities)	$	-	$	-		$	-

The Company has net operating loss carryforwards of approximately $5,223,052 which may be carried forward to apply against future taxable income for US tax purposes, subject to the final determination by the taxation authority, expiring in the following years:

Expiry	Enertopia	Target	Consolidated
2025	87,722	-	87,722
2026	-	-	-
2027	615,341	-	615,341
2028	350,002	-	350,002
2029	109,502	-	109,502
2030	3,073,726	-	3,073,726
2031	-	169,545	169,545
2032	812,941	4,272	817,214
Total	5,049,234	173,817	5,223,052

The potential tax benefits of net operating and capital losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating or capital losses carried forward in future years.