Annual report pursuant to Section 13 and 15(d)

Current and Deferred Income Taxes

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Current and Deferred Income Taxes
12 Months Ended
Jun. 30, 2017
Current and Deferred Income Taxes [Abstract]  
Current and deferred income taxes
7 Current and deferred income taxes

 

The Company has the following non-capital losses available to reduce taxable income of future years:

 

  Expiry date   $  
         
  2029     59,064  
  2030     936,786  
  2031     1,014,530  
  2033     3,658,407  
  2034     5,016,448  
  2035     4,334,239  
  2036     5,483,466  
  2037     5,249,468  

  

In addition, the Company has non-refundable Federal investment tax credits of $207,080 that expire between 2029 and 2037 and non-refundable British Columbia investment tax credits of $112,448 that expire between 2019 and 2027.

  

Significant components of the Company’s deferred tax assets and tax liabilities are shown below:

 

      June 30,
2017
$
    June 30,
2016
$
 
               
  Deferred tax assets:                
  Non-capital losses carried forward     7,340,286       4,997,819  
  Capital losses carried forward     17,925       -  
  Financing costs     5,512       7,448  
  Scientific research and development     350,435       233,773  
  Scientific research and development - ITC     319,528       -  
        8,033,686       5,239,040  
  Deferred tax liabilities:                
  Scientific research and development – ITC     (53,841 )     -  
        7,979,845       5,239,040  
  Valuation allowance     (7,979,845 )     (5,239,040 )
                   
  Net deferred tax assets     -       -  

  

The income tax benefit of these tax attributes has not been recorded in these consolidated financial statements because of the uncertainty of their recovery.

  

The Company’s effective income tax rate differs from the statutory income tax rate of 34% (2016  34%).

  

The differences arise from the following items:

  

      June 30,
2017
$
    June 30,
2016
$
 
               
  Tax recovery at statutory income tax rates     (2,747,800 )     (2,885,559 )
  Permanent differences     (15,342 )     1,119,908  
  Effect of rate differentials between jurisdictions     464,938       257,900  
  Other     (62,962 )     34,116  
  Change in valuation allowance     2,361,166       1,473,635  
                   
        -       -