Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.21.2
Income Taxes
12 Months Ended
Aug. 31, 2019
Income Tax Disclosure [Abstract]  
INCOME TAXES
24. INCOME TAXES

The Company’s deferred tax assets (liabilities), resulting from temporary differences that will change taxable incomes of future years, are: 


    2019     2018  
Property, plant and equipment and intangible assets   $ (18,458,345 )   $ (1,571,771 )
Non-capital tax loss carry-forwards     12,508,132       11,601,966  
Other tax-related balances and credits     162,286       349,408  
Valuation allowance     5,787,927       (10,379,603 )
Net deferred tax assets (liabilities)   $ -     $ -  

A reconciliation of the provision for income taxes is:


    2019     2018  
Net loss before income taxes   $ 15,787,886     $ 15,480,603  
Combined federal and state statutory income tax rates     26.5 %     26.5 %
Tax recovery using the Company’s domestic tax rate     4,183,790       4,102,360  
Effect of tax rates in foreign jurisdictions     (1,043,076 )     86,029  
Net effect of (non-deductible) deductible items     (589,711 )     (1,679,346 )
Current year deductible amounts     35,489       763,571  
Current period losses not recognized     (2,586,492 )     (3,272,614 )
Provision for income taxes   $ -     $ -  

As at August 31, 2019, the Company has, on a consolidated basis, non-capital losses of approximately $79 million for income tax purposes which may be used to reduce taxable incomes of future years. If unused, these losses will expire between 2029 and 2039.