Taxes Payable

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Taxes Payable

11. Taxes Payable

In the prior year, the Company settled the tax liabilities owing to the Canadian Revenue Authorities out of the proceeds of the disposal of the Canadian Rehab Clinic on February 14, 2017. The Company paid CDN$2,929,886 to settle outstanding payroll liabilities, CDN$441,598 to settle outstanding GST/HST liabilities and a further CDN$57,621  to settle other Canadian tax liabilities.

The remaining taxes payable consist of: 

● A payroll tax liability of $133,844 (CDN$182,589) in Greenestone Muskoka which has not been settled as yet.

● A GST/HST tax payable of $33,757 (CDN$46,051).

● The Company has assets and operates businesses in Canada and is required to disclose these operations to the US taxation authorities, the requisite disclosure has not been made. Management has reserved the maximum penalty due to the IRS in terms of non-disclosure. This noncompliance with US disclosure requirements is currently being addressed. An amount of $250,000 has been accrued for any potential exposure the Company may have.

	December 31, 2018		December 31, 2017
Payroll taxes	$	133,843	$	155,894
HST/GST payable		33,757		—
US penalties due		250,000		250,000
Income tax payable		357,792		283,346
	$	775,392	$	689,240