- We protect over 150,000 people across North America
- Over 20 years experience in the industry
- One of the few alarm companies to manufacture our own technology
- You deal directly with AlarmForce at all times
- Lowest prices and best value in the business
Financial Information
9. INCOME TAXES
| 2006 $ |
2005 $ |
|
| Current income tax expense | 1,083,361 | 1,086,116 |
| Future income tax expense (recovery) | (66,000) | (605,767) |
| 1,017,361 | 480,349 |
Income tax expense varies from the amount that would be computed by applying the combined federal and provincial statutory income taxes rate as a result of the following:
| 2006 $ |
2005 $ |
|
| Income taxes based on combined federal and provincial statutory income tax rate of 36.12% in 2006 and in 2005 | 906,503 | 466,151 |
| Increase (decrease) in income taxes resulting from: | ||
| Non-deductible expenses | 66,326 | 27,983 |
| Other temporary differences | 44,532 | (13,785) |
| Effective income tax provision | 1,017,361 | 480,349 |
A summary of significant components of future tax liabilities calculated in accordance with Canadian accounting principles
at October 31, 2006 and 2005 are as follows:
| 2006 $ |
2005 $ |
|
| Non-current future tax liabilities: | ||
| Property, plant and equipment | (500,000) | (167,100) |
| Deferred charges | (7,000) | (11,000) |
| Intangible assets | (1,100,000) | (1,355,200) |
| (1,607,000) | (1,533,300) | |
| Non current future tax assets | ||
| Deferred revenue | 781,000 | 606,700 |
| Share issue costs | 71,000 | 105,600 |
| 852,000 | 712,300 | |
| Net Future income tax liability | (755,000) | (821,000) |
10. CONTINGENT LIABILITY
The Company is a defendant in a legal action in the amount of $750,000 with respect to a claim for fees subsequent to termination of an agreement. Based on the evidence available, the Company believes the claim to be unfounded and will continue to vigorously defend its position. No provision has been reflected in the financial statements relating to this action.