INCOME TAXES

12 Months Ended

Jan. 31, 2019

Notes to Financial Statements

16. INCOME TAXES

Income tax recovery (expense) differs from the amount that would result from applying the Canadian federal and provincial statutory income tax rates to income (loss) before future income taxes. For the year ended January 31, 2019, the Canadian statutory rate is 27% (2018 - 26%, 2017 – 26%).

	2019			2018			2017
Expected income tax recovery (expense)	$	(110,000	)	$	(982,000	)	$	145,000
Permanent differences		(113,000	)		100,000			(46,000	)
Changes in timing differences and other		336,000			459,000			(11,000	)
Effect of foreign exchange changes on U.S. loss carry-forwards		(17,000	)		(52,000	)		(412,000	)
Expired losses		-			-			-
Changes in unrecognized deferred income tax assets		200,000			(758,000	)		(108,000	)
Adjustments due to effective tax rate attributable to U.S.  tax on subsidiaries		-			(517,000	)		9,000
Total deferred and current income tax recovery (expense)	$	296,000		$	(1,750,000	)	$	(423,000	)

The approximate tax effects of each type of temporary difference that gives rise to potential deferred income tax assets and liabilities are as follows:

	January 31, 2019			January 31, 2018
Non-capital losses carried forward	$	-		$	-
Reclamation provision		-			-
Exploration and evaluation assets		(55,000	)		(42,000	)
Equipment and other		-			-
Net deferred income tax assets (liabilities)	$	(55,000	)	$	(42,000	)

Temporary differences and tax losses arising in Canada have not been recognized as deferred income tax assets due to the fact that management has determined it is not probable that sufficient future taxable profits will be earned in Canada to recover such assets. Unrecognized deductible temporary differences are summarized as follows:

	January 31, 2019		January 31, 2018
Non-capital losses carried forward	$	2,539,000	$	2,741,000
Equipment and other		4,000		2,000
Investments		-		-
Exploration and evaluation assets		734,000		734,000
Unrecognized deductible temporary differences	$	3,277,000	$	3,477,000

At January 31, 2019, the Company had, for Canadian tax purposes, non-capital losses aggregating approximately $9,402,000. These losses are available to reduce taxable income earned by the Canadian operations of future years and expire as follows between 2026 and 2038.