Note 7- Income Taxes

12 Months Ended

Dec. 31, 2012

Notes

Note 7- Income Taxes

Note 7- Income Taxes

Current Income Taxes

Reconciliation of the effective combined federal and provincial tax rate of 26.5% (2011 – 28.25%) to current income tax expense is as follows:

	2012	2011
Income taxes on accounting income	(507,586)	(278,524)
Tax effect of items which are not deductible for tax purposes	272,458	173,368
Losses available to be carried forward	235,128	105,156
Income tax expense	-	-

Deferred Income Taxes

The components of deferred income taxes have been determined at the combined Canadian federal and provincial statutory rate of 25% (2011 – 25%) are as follows:

	2012	2011
Deferred income tax asset:
Losses available to be carried forward	386,462	142,768
Valuation allowance	(386,462)	(142,768)
	-	-

The Company has approximately $1,450,000 of income tax losses available to be carried forward for use in future years, which begin to expire in 2029.