INCOME TAXES

12 Months Ended

Aug. 31, 2015

INCOME TAXES [Text Block]

12.	INCOME TAXES
	The following table reconciles the income tax benefit at the U.S. Federal statutory income tax rates to income tax benefit at the Company’s effective tax rates at August 31, 2015 and 2014:

		2015			2014
Income (Loss) Before Taxes	$	(1,149,433	)	$	(4,641,006	)
Statutory tax rate		34%			34%
Expected income tax (recovery)		(390,807	)		(1,577,942	)
Non-deductible items		60,383			1,360
Change in estimates		7,314			260,756
Change in enacted tax rate		-			222,795
Change in valuation allowance		323,110			1,093,031
Income tax expense (recovery)	$	-		$	-

Deferred taxes reflect the tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes. Deferred tax assets (liabilities) at August 31, 2015 and 2014 are comprised of the following:

		2015			2014
Net operating loss carry forwards	$	3,704,394		$	3,240,330
Marketable securities		(19,788	)		-
Short Term Loan		(17,000	)		(17,000	)
Capital loss carry forwards		8,313			-
		3,675,919			3,223,330
Valuation Allowance		3,675,919			3,223,330
Deferred Tax Assets (Liabilities)	$	-		$	-

The Company has net operating loss carry forwards of approximately $10,319,275 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
2025	83,396
2026	-
2027	615,341
2028	350,002
2029	113,828
2030	3,073,726
2031	-
2032	611,284
2033	379,241
2034	4,641,005
2035	1,027,452
Total	10,895,275