The reconciliation of income tax attributable to operations computed at the statutory rates to the Company’s provision for income taxes is derived as follows:
In 2009, certain Provincial Governments reduced general corporate income tax rates. As a result, future income tax assets and liabilities were required to be re-measured using the newly enacted tax rates that are expected to be in effect when the related future tax assets are realized and liabilities are settled.
The significant components of the Company’s future income tax assets and liabilities are as follows
The Company recognizes as a future income tax asset the benefit of capital and non-capital loss carryforwards to the extent it is more likely than not that the benefit will be realized. As at year end, the Company had available loss carryforwards of $2,746,000. A future income tax asset of $904,000 (2009 – $756,000) has been recognized in respect of these carryforwards. The available loss carryforwards will expire as follows: $2,337,000 in 2026 and $175,000 in 2027 and $234,000 in 2030.