7. Income Taxes

12 Months Ended

Dec. 31, 2011

7. Income Taxes

No provision for income taxes has been made for the periods presented as the Company has incurred net losses.

The potential benefit of net operating loss carry forwards has not been recognized in the financial statements since the Company cannot be assured that it is more likely than not that such benefit will be utilized in future years. The components of the net deferred tax asset, the statutory tax rate, the effective tax rate and the elected amount of the valuation allowance are as follows:

		2011		2010

Statutory rate		26.5%		28.5%

Income taxes recovered at the effective tax rate	$	9,075	$	5,408

Adjustment for temporary timing differences:		(552)		(592)

		8,523		4,816
Change in tax rate		(1,796)		(1,017)
Benefit of tax losses not recognized in year		(6,727)		(3,799)
Income tax recovery (expense) recognized in year	$	-	$	-

		December 31, 2011		December 31, 2010

Net operating loss carry forwards (expiring in 2027-2031)	$	81,772	$	49,609

Deferred tax assets	$	23,806	$	15,842
Less: Valuation allowance		(23,806)		(15,842)
Net deferred tax assets	$	-	$	-

The change in valuation allowance on deferred tax assets was $7,964 in 2011 (2010 -$4,858).

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 43, 44, 45, 46, 47, 48, 49

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

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+ Details

Cormac Mining Inc. 10-K