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## 13. Income Taxes 

As at December 31, 2012, the Company has non-capital losses of $6,760,500, which may be applied against future income for Canadian income tax purposes. The potential income tax benefits of these losses have been recognized in these financial statements against deferred income tax liabilities. The losses expire as follows: 

<img src='content_image/193196.jpg'>

The reconciliation of income tax provision computed at statutory rates (2012 – 25.0%; 2011 - 26.5%) to the reported income tax provision is as follows: 

<img src='content_image/193195.jpg'>

Deferred income tax assets and liabilities are recognized for temporary differences between their carrying amounts and their corresponding tax values as well as for the benefit of losses available to be carried forward to future years for tax purposes that are probable of being realized. 

Significant components of the Company’s deferred tax assets and liabilities, after applying enacted corporate income tax rates are as follows: 

<img src='content_image/193194.jpg'>

