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## 11. Income Taxes 

Income tax expense is comprised of the following: 

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The following table reconciles the income tax expense using a weighted average Canadian federal and provincial rate of 25.49% (2012 – 25.36%) to the reported tax expense. The rate increase is due to more of the Company’s revenue being earned in provinces with higher tax rates. The reconciling items represent, aside from the impact of tax rate differentials and changes, non-taxable benefits or non-deductible expenses arising from permanent differences between the local tax base and the reported financial statements, in accordance with IFRS. 

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Deferred income taxes are the result of temporary differences between the carrying amounts of certain assets and liabilities in the financial statements and their tax bases. No portion of deferred income taxes is expected to be recovered within 12 months. 

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