INCOME TAXES

12 Months Ended

Dec. 31, 2020

NOTE 15 – INCOME TAXES

The following table reconciles the expected income tax expense (recovery) for different jurisdictions at the Company’s effective combined tax rate of 21%.

	2020			2019
Net loss before income taxes		(19,214,750	)		(615,256	)
Expected income tax expense (recovery) at statutory rate of 21% (2019 - 35%)		(4,035,097	)		(215,341	)

Impact of tax rate differences in foreign jurisdictions	(46,890	)	64,800
Tax rate changes and other adjustments	148,783		(4,693	)
Permanent difference	3,733,812		47,736
Change in valuation allowance	199,531		107,498
Income tax expense (recovery)	139		0

Unrecognized deferred tax assets:

The following table reflects the gross unused tax losses and deductible temporary differences for which deferred tax assets have not been recognized in the financial statements:

	2020			2019
Non-capital loss carry-forward for Canadian purposes		1,575,636			1,376,244
Net operating loss carryforward US		166,516			166,516
Valuation allowance		(1,742,291	)		(1,542,760	)

The Company’s non-capital losses expires as follows:

	Canada Losses		USA Losses
Year	Balance	Expiry	Balance	Expiry
2020	752,424	2040	—	2040
2019	387,685	2039	322	2039
2018	1,634,662	2038	214,173	2038
2017	2,258,953	2037	440,437	2037
2016	912,072	2036	138,001	2036
	5,945,796		792,933

- 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/disclosureRef
-Publisher FASB
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Zoompass Holdings, Inc. 10-K