A reconciliation of combined federal and provincial corporate income taxes at the Company’s effective tax rate of % (201 - %).

 

 

Deferred income tax assets and liabilities result primarily differences in recognition of certain timing differences that give rise to the Company’s future tax assets (liabilities) and are as follows:

 

In assessing the realizability of deferred tax assets, management considers whether it is probable that some or all the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Management, based on IFRS criteria, has determined, at this time, not to recognize its deferred tax assets.

 

non-capital

240,594,715

non-capital

 

The Company has accumulated Qualifying Research and Development expenses of $ from prior years research and development. These expenditures may be carried forward indefinitely and used to reduce taxable income in future years.

As a result of a Canada Revenue Agency (CRA) audit completed in 2017 and 2016, regarding Titan’s 2012 and 2011 SR&ED claim the 2012 loss of $has been adjusted to $and the 2011 loss of $has been adjusted to $. The qualifying SR&ED expenditures has also been adjusted from $to $. CRA concluded that the claimed work did not satisfy the SR&ED criteria. Titan is appealing this decision by CRA.

 

At December 31, 201 the Company has $(201 - $) of unclaimed investment tax credits available to reduce federal income taxes payable in future years. If not utilized, these investment tax credits will start expiring in 2028. The amounts have been adjusted to reflect changes due to the CRA audit.

At December 31, 201 the Company has $(201 - $) of unclaimed Ontario Research and Development Tax Credit available to reduce Ontario income taxes payable in future years. If not utilized, this credit will start expiring in 2029. The amounts have been adjusted to reflect changes due to the CRA audit.