Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.21.2
Income Taxes
12 Months Ended
Aug. 31, 2020
Income Tax Disclosure [Abstract]  
INCOME TAXES
27. INCOME TAXES

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


    2020     2019  
Property, plant and equipment and intangible assets   $ (18,502,900 )   $ (18,458,345 )
Non-capital tax loss carry-forwards     14,418,180       12,508,132  
Other tax-related balances and credits     (160,286 )     162,286  
Valuation allowance     4,247,006       5,787,927  
Net deferred tax assets (liabilities)   $ -     $ -  

A reconciliation of the provision for income taxes is:


    2020     2019  
Net loss before income taxes   $ 12,379,067     $ 15,787,886  
Combined federal and state statutory income tax rates     26.5 %     26.5 %
Tax recovery using the Company’s domestic tax rate     3,280,453       4,183,790  
Effect of tax rates in foreign jurisdictions     -       (1,043,076  
Net effect of (non-deductible) deductible items     (2,369,610 )     (589,711 )
Current year deductible amounts     1,638,692       35,489  
Current period losses not recognized     (2,549,535 )     (2,586,492 )
Provision for income taxes   $ -     $ -  

As at August 31, 2020, the Company has, on a consolidated basis, non-capital losses of approximately $91 million for income tax purposes which may be used to reduce taxable incomes of future years. If unused, these losses will expire between 2030 and 2040.