Income Tax

12 Months Ended

Jan. 31, 2022

Income Tax

19. Income Tax

T he following schedule reconciles the expected income tax expense (recovery) at the Canadian combined federal and provincial statutory rate of 27% (2021 - 27%) to the amounts recognized in the consolidated statements of comprehensive loss:

	January 31, 2021 $			January 31, 2021 $			January 31, 2020 $
Net loss before taxes		(11,992,508	)		(36,350,790	)		(19,588,762	)
Statutory rate		27.00	%		27.00	%		27.00	%
Expected tax recovery		(3,237,977	)		(9,814,710	)		(5,288,966	)
Foreign tax rate differences		(139,857	)		219,740			(36,227	)
Permanent differences and other		340,070			115,020			194,935
Write-off and impairments		302,806			3,017,450			–
Abandoned assets		–			52,490			–
Change in deferred tax assets not recognized		2,901,624			6,410,010			5,130,258
Income tax expense		166,666			–			–

The Company’s income tax expense is allocated as follows: 

	2022  $		2021  $
Current tax expense		166,666		–
Deferred tax expense		–		–
		166,666		–

Deferred taxes are provided as a result of temporary differences that arise due to the differences between the income tax values and the carrying amount of assets and liabilities. Deferred tax assets have not been recognized in respect of the following deductible temporary differences:

	2022  $		2021  $
Tax loss carryforwards – CDA		50,216,400		33,038,280
Tax loss carryforwards - USA		474,030		539,080
Tax loss carryforwards – Europe		–		839,770
Tax loss carryforwards – Australia		12,080		434,550
Tax loss carryforwards – Hong Kong		73,160		–
Intangible assets		15,339,660		17,472,600
Property and equipment		8,120		49,740
Financing costs		5,138,660		5,242,820
Capital loss		5,184,180		4,605,190
Total unrecognized deductible temporary differences		76,446,290		62,222,030

As at January 31, 2022, the Company’s US net operating loss carryforwards total $474,030 (2021 - $539,080) which have no expiry date. Financing fees will be fully amortized in 2026. The remaining unrecognized deferred tax assets will carry forward indefinitely. 

The Company’s unrecognized Canadian non-capital income tax losses expire as follows:

Expiry Date	Non-Capital Loss  $
2031		63,525
2032		657,883
2034		687,128
2035		1,499,363
2036		4,769,156
2037		1,267,151
2038		1,169,742
2039		4,937,403
2040		11,050,992
2041		9,067,088
2042		15,046,969
		50,216,400

As at January 31, 2022, the Company accrued an amount of $344,492 related to late filing penalties regarding forms required to be filed in the US.