8. Taxation Payable

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

8. Taxation Payable

8. Taxation Payable

The Company has the following outstanding tax liabilities:

a) Harmonized Sales Taxes

This represents sales tax liabilities in Canada, these taxes were never paid, management intends paying these taxation liabilities together with interest and penalties thereon, when sufficient funds are raised to do so.

b) Payroll Taxes

The Company is delinquent in filing its payroll tax returns resulting in taxes, interest and penalties payable at December 31, 2016 and 2015. As of December 31, 2016 and 2015 as part of Taxes Payable, the Company has payroll tax liabilities of approximately $2,220,731 and $1,780,000, respectively due to various taxing authorities. If the Company does not satisfy these liabilities, the taxing authorities may place liens on its bank accounts which would have a negative impact on its ability to operate. Further, the actual liability may be higher due to interest or penalties assessed by the taxing authorities.

Subsequent to year end, upon the disposal of the assets of the Greenestone Muskoka Treatment Center, a portion of the proceeds realized were used by the Company to settle the outstanding Harmonized Sales tax and Payroll taxes liability.

c) US taxation and penalties

The Company had assets and operated a business in Canada and is required to disclose these operations to the US taxation authorities, the requisite disclosure has not been made and management has reserved the maximum penalty due to the IRS in terms of non-disclosure. This non-compliance with US disclosure requirements is currently being addressed.

The taxes and penalties due are as follows:

	December 31, 2016		December 31, 2015
Payroll taxes and Harmonized sales taxes		2,548,824		2,290,506
US penalties due		250,000		200,000
	$	2,798,824	$	2,490,506