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.