The tax effect of the significant temporary differences, which comprise deferred income tax assets and liabilities, are as follows:

	2021			2020
Statutory income tax rate		21	%		21	%

Income tax recovery at statutory rate		(23,803	)		(5,567	)

Tax effect of:
Change in valuation allowance		(23,803	)		(5,567	)
Income tax provision		-			-

The significant components of deferred income tax assets and liabilities are as follows:

	2021			2020
Deferred income tax assets

Non-capital losses carried forward		68,192			44,389
Valuation allowance		(68,192	)		(44,389	)
Net deferred income tax asset		-			-

As of June 30, 2021, the Company had approximately $325,000 of net operating loss carryforwards (“NOLs”) available to reduce future taxable income through 2030. The current year’s net operating loss will carryforward indefinitely, limited to 80% of the current year taxable income. The Company’s income tax filings are subject to audit by various taxing authorities. The Company's open audit periods are 2018-2020. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against all the deferred tax assets for every period because it is more likely than not that all of the deferred tax assets will be realized.