Note 7 - Income Taxes

12 Months Ended

Dec. 31, 2015

Notes

Note 7 - Income Taxes

NOTE 7 - INCOME TAXES

	2015		2014
Net loss before taxes	$	(663,511)	$	(16,010,604)
Income tax expense (recovery)	$	-	$	-

A reconciliation of the expected income tax expense, computed by applying a 35% U.S. Federal corporate income tax rate to income before taxes to income tax expense is as follows:

	2015		2014
Expected income tax expense (recovery)	$	(228,800)	$	(5,603,700)
Share-based payments		129,400		5,396,300
Interest		24,000		156,700
Loss on debt settlement		-		4,200
Change in valuation allowance		75,400		46,500
	$	-	$	-

At December 31, 2015 and 2014, the Company had available a net-operating loss carry-forward for Federal tax purposes of approximately $666,200 and $450,600, respectively, which may be applied against future taxable income, if any, at various times through 2035. Certain significant changes in ownership of the Company may restrict the future utilization of these tax loss carry-forwards. At December 31, 2015, the Company has a deferred tax asset of $233,800 representing the benefit of its net operating loss carry-forward. The Company has not recognized the tax benefit because realization of the tax benefit is uncertain and thus a valuation allowance has been fully provided against the deferred tax asset.

The Company recognizes interest and penalties, if any, related to uncertain tax positions in general and administrative expenses.  No interest and penalties related to uncertain tax positions were accrued at December 31, 2015 and 2014.

The tax years 2015, 2014, 2013, remain open to examination by the major taxing jurisdictions in which the Company operates.  The Company expects no material changes to unrecognized tax positions within the next twelve months.