15.

Income Taxes

The following table reconciles the income tax benefit at the statutory rates to income tax benefit at the Company’s effective tax rate.

	2015 $			2014 $

Net loss before taxes		(3,053,395	)		(43,248,235	)
Statutory tax rate		34	%		34	%

Expected income tax recovery		1,038,154			14,704,400
Permanent differences and other		(398,898	)		(9,624,775	)
Change in estimates		–			(80,520	)
Change in enacted tax rate		(41,644	)		(66,625	)
Foreign tax rate difference		(11,867	)		(18,750	)
Change in valuation allowance		(585,745	)		(4,913,730	)

Income tax provision		–			–

Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting processes. Deferred income tax assets and liabilities at March 31, 2015 and 2014 are comprised of the following:

	2015 $			2014 $

Net operating losses carried forward		6,342,297			5,756,552
Valuation allowance		(6,342,297	)		(5,756,552	)

Net deferred tax asset		–			–

The Company has net operating losses carried forward of $18,815,671 which may be carried forward to apply against future year income tax for income tax purposes, subject to the final determination by taxation authorities, expiring in the following years:

	$

2022		71,014
2028		7,372
2029		1,030
2030		469,466
2031		221,276
2032		248,075
2033		1,223,832
2034		14,688,970
2035		1,884,636

		18,815,671