Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes [Text Block]

20. Income Taxes

The Company's income tax provision has been calculated as follows:

		2021			2020
Loss before income taxes	$	(4,901,397	)	$	(2,152,191	)
Expected income tax recovery at the statutory rate of 21% (2019-21%)		(1,029,293	)		(451,960	)
Foreign tax rate differences		(144,045	)		(70,382	)
Prior year adjustments		62,575			357,100
Foreign exchange effect on deferred tax assets and other		1,702			(81,931	)
Permanent differences		163,693			49,467
Change in valuation allowance		909,826			57,829
Provision for income taxes	$	(35,542	)	$	(139,877	)

The Company's income tax provision is allocated as follows:

Current Tax (recovery)		(26,505	)		(18,959	)
Deferred Tax (recovery)		(9,037	)		(120,918	)
	$	(35,542	)	$	(139,877	)

Deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant components of the deferred income tax assets and deferred income tax liabilities are presented below:

		2021			2020
Net operating loss carry forwards	$	2,836,838		$	2,004,869
Financing costs		31,614			69,632
Depreciable and amortizable assets		(67,349	)		(206,230	)
Land		(184,369	)		(182,407	)
Convertible promissory notes		110,026			-
Reserves		-			35,591
Unrealized foreign exchange loss		-			55,977
Total gross deferred income tax assets		2,726,760			1,777,432
Less: valuation allowance		(2,800,685	)		(1,859,933	)
Total deferred income tax liabilities	$	(73,925	)	$	(82,501	)

 

Movement in deferred income tax liabilities:		2021			2020
Balance at the beginning of the year	$	(82,501	)	$	-
Recognized in profit/loss		9,037			120,917
Recognized in OCI		(461	)		(4,769	)
Recognized in goodwill		-			(198,649	)
Balance at the end of the year	$	(73,925	)	$	(82,501	)

As at December 31, 2021 and 2020, the valuation allowance was due to the history of losses generated. The valuation allowance is reviewed periodically and if the assessment of the more likely than not criteria changes, the valuation allowance is adjusted accordingly.

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company computes tax asset benefits for net operating losses ("NOL") carried forward.

The Company has US NOL available for carry forward of $3,400,418 (2020-$2,356,209) which can be carried forward indefinitely and Canadian NOL available for carry forward of $7,918,029 (C$10,038,069) (2020-$5,698,358; C$7,255,358) which expire in the years 2036 through 2041.