TAXATION

12 Months Ended

Jul. 31, 2025

TAXATION

TAXATION

10. TAXATION

(a) Provision for current tax

During the year ended July 31, 2025, the Company recorded a provision of current income tax recovery of $Nil (2024 – $Nil).

Reconciliation of effective tax rate:
	Years ended July 31,
	2025			2024			2023
	$			$			$
Income (loss) for the years		(3,473,539	)		(2,436,802	)		(910,464	)
Income tax expense		-			-			-
Income (loss) excluding income tax		(3,473,539	)		(2,436,802	)		(910,464	)
Income tax expense (recovery) using the Company’s domestic rate		(938,000	)		(658,000	)		(246,000	)
Effect of tax rates in foreign jurisdictions		-			-			(1,000	)
Non-deductible expenses and other		474,000			557,000			267,963
Difference in statutory tax rates and deferred tax rates		-			-			-
Change in unrecognized temporary differences		464,000			101,000			(21,000	)
Current tax expense		-			-			(37	)

The Company’s domestic tax rate during the year ended July 31, 2025 was 27% (2024 – 27%; 2023 – 27%) and the effective tax rate was nil (2024 – nil; 2023 – nil).  

(b) Provision for deferred tax

As future taxable profits of the Company are uncertain, no deferred tax asset has been recognized.

As at July 31, 2025, the Company had unused non-capital loss carry forwards of approximately $4,669,000 (2024 – $4,248,000) in Canada and $nil (2024 – $nil) in the United States.

As at July 31, 2025, the Company had the following balances in respect of which no deferred tax assets had been recognized:

Expiry	Tax Losses		Resource Pools		Equipment and Other
Within one year		-		-		-
One to five years		-		-		69,000
After five years		4,669,000		-		92,000
No expiry date		-		5,629,000		114,000
		4,669,000		5,629,000		275,000

In addition, the Company has approximately $5,629,000 (2024 - $4,395,000) of resource tax pools available, which may be used to shelter certain resource income in Canada.