|12 Months Ended|
Sep. 30, 2016
|Notes to Financial Statements|
|NOTE 11. INCOME TAXES||
The regional sources of tax losses for the years ended September 30, 2016, 2015 and 2014 were as follows:
Tax losses by year of origin and year of expiry are as follows:
The tax effect of material temporary differences representing deferred tax assets is estimated as follows:
The valuation allowance as of September 30, 2016, 2015 and 2014 totaled $6,417,948, $6,171,601 and $6,079,120 respectively which consisted primarily of established reserves for deferred tax assets on non-capital operating loss carry forwards for our entities in United States and our foreign entities. The tax rates being used to determine deferred tax assets are estimated at 34.5% for North America and 15% for outside North America. The consolidated effective tax (benefit) rate as a percentage of income (loss) before income taxes is as follows.
As of September 30, 2016, 2015 and 2014 the Company had no unrecognized tax benefits and as such required no adjustments to the financial statements. The Company records any interest and penalties related to tax matters within general and administrative expenses on the accompanying consolidated statements of operations and comprehensive loss. These amounts are not material to the consolidated financial statements for the periods presented. The Companys US and Canadian tax returns are subject to examination by respective tax authorities. Generally, tax years 2007 2015 remain open to examination by those respective tax authorities. (IRS in the United States and Canada Customs and Revenue Agency in Canada).
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/presentationRef