Income Taxes | 10. Income Taxes The Company and its subsidiaries file income tax returns in Switzerland, South Africa, the United States and Brazil. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Switzerland $ 312,843 $ (397,962) $ 83,321 $ (883,745) South Africa $ (122,324) (157,520) (258,310) (384,174) United States $ (67,620) (403,706) (233,985) (647,105) Brazil - - - - Total Net Income (Loss) $ 122,899 $ (959,188) $ (408,974) $ (1,915,024) Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Current tax provision: Switzerland $ - $ - $ - $ - South Africa - - - - United States - - - - Brazil - - - - Total current tax provision - $ - - $ - Deferred tax provision: Switzerland 56,767 $ (71,303) 15,759 $ (158,070) South Africa (34,215) (44,066) (72,256) (107,490) United States (23,667) (141,297) (81,894) (226,487) Brazil 235,375 - 235,375 - Change in valuation allowance (234,260) 256,666 (96,984) 492,047 Total deferred provision - - - - Total $ - $ - $ - $ - The Company has determined that the future tax benefits from net operating losses are not likely to be realized in future periods and a full valuation allowance has been provided for all periods. The income tax effect of each type of temporary difference giving rise to the net deferred tax asset as follows: June 30, December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 6,555,878 $ 6,652,861 Less: valuation allowance (6,555,878) (6,652,861) Total $ - $ - United Switzerland South Africa States Brazil Total Statutory rate of tax 8.5%/18% 28.0% 35.0% 25.0% Three months ended June 30, 2015: Net income (loss) from operations before taxes $ 312,843 $ (122,324) $ (67,620) $ - $ 122,899 As calculated at the statutory rate 56,767 (34,286) (23,667) - (1,186) Permanent differences - 71 - 235,375 235,446 Change in valuation reserves (56,767) 34,215 23,667 (235,375) (234,260) Provision for income taxes $ - $ - $ - $ - $ - Three months ended June 30, 2014: Net (loss) from operations before taxes $ (397,962) $ (157,520) $ (403,706) $ - $ (959,188) As calculated at the statutory rate (71,303) (44,106) (141,297) - (256,706) Permanent differences - 40 - - 40 Change in valuation reserves 71,303 44,066 141,297 - 256,666 Provision for income taxes $ - $ - $ - $ - $ - Six months ended June 30, 2015: Net income (loss) from operations before taxes $ 83,321 $ (258,310) $ (233,985) $ - $ (408,974) As calculated at the statutory rate 15,759 (72,327) (81,894) - (138,462) Permanent differences - 71 - 235,375 235,446 Change in valuation reserves (15,759) 72,256 81,894 (235,375) (96,984) Provision for income taxes $ - $ - $ - $ - $ - Six months ended June 30, 2014: Net (loss) from operations before taxes $ (883,745) $ (384,174) $ (647,105) $ - $ (1,915,024) As calculated at the statutory rate (158,070) (107,569) (226,487) - (492,126) Permanent differences - 79 - - 79 Change in valuation reserves 158,070 107,490 226,487 - 492,047 Provision for income taxes $ - $ - $ - $ - $ - Permanent differences are principally related to loss on disposal of property and equipment, interest and penalties and unallowable expenses. The Company and Group members remain subject to tax examinations for the year ended December 31, 2014 in Switzerland and South Africa, for the six years ended December 31, 2014 in the U.S and for the four years ended December 31, 2014 in Brazil. During December 2013 the Internal Revenue Service (the “IRS”) notified the Company of assessments totaling $ 40,000 10,000 | 10. Income Taxes The Company and its subsidiaries file income tax returns in Switzerland, South Africa, the United States and Brazil. From August 24, 2005 Years Ended December 31, (inception) to 2014 2013 December 31, 2014 Switzerland $ (1,561,194) $ (2,883,099) $ (20,960,178) South Africa (616,550) (234,099) (10,152,768) United States (920,852) (1,301,924) (2,238,210) Brazil - - (941,498) Total Net Loss $ (3,098,596) $ (4,419,122) $ (34,292,654) From August 24, 2005 Years Ended December 31, (inception) to 2014 2013 December 31, 2014 Current tax provision: Switzerland $ - $ - $ 32,673 South Africa - - - United States - - - Brazil - - - Total current tax provision - $ - 32,673 Deferred tax provision: Switzerland (278,301) $ (513,023) (3,621,534) South Africa (171,594) (19,435) (2,012,578) United States (322,299) (455,673) (783,374) Brazil - - (235,375) Change in valuation allowance 772,194 988,131 6,652,861 Total deferred provision - $ - - Total $ - $ - $ 32,673 The Company has determined that the future tax benefits from net operating losses are not likely to be realized in future periods and a full valuation allowance has been provided for all periods. December 31, December 31, 2014 2013 Deferred tax assets: Net operating loss carryforwards $ 6,652,861 $ 5,880,667 Less: valuation allowance (6,652,861) (5,880,667) Total $ - $ - Switzerland South Africa United States Brazil Total Statutory rate of tax 8.5%/18% 28.0% 35.0% 25.0% Year ended December 31, 2014: Net (loss) from operations before taxes $ (1,561,194) $ (616,550) $ (920,852) $ - $ (3,098,596) As calculated at the statutory rate (278,301) (172,634) (322,299) - (773,234) Permanent differences - 1,040 - - 1,040 Change in valuation reserves 278,301 171,594 322,299 - 772,194 Provision for income taxes $ - $ - $ - $ - $ - Year ended December 31, 2013: Net (loss) from operations before taxes $ (2,883,099) $ (234,099) $ (1,301,924) $ - $ (4,419,122) As calculated at the statutory rate (513,023) (65,548) (455,673) - (1,034,244) Permanent differences - 46,113 - - 46,113 Change in valuation reserves 513,023 19,435 455,673 - 988,131 Provision for income taxes $ - $ - $ - $ - $ - For the period from August 24, 2005 (inception) to December 31, 2014: Net (loss) from operations before taxes $ (20,960,178) $ (10,152,768) $ (2,238,210) $ (941,498) $ (34,292,654) As calculated at the statutory rate (3,601,186) (2,842,775) (783,374) (235,375) (7,462,710) Permanent differences 12,325 830,197 - - 842,522 Change in valuation reserves 3,621,534 2,012,578 783,374 235,375 6,652,861 Provision for income taxes $ 32,673 $ - $ - $ - $ 32,673 Permanent differences are principally related to loss on disposal of property and equipment, interest and penalties and unallowable expenses. The Company and Group members remain subject to tax examinations for the year ended December 31, 2014 in Switzerland and South Africa, for the six years ended December 31, 2014 in the U.S and for the four years ended December 31, 2014 in Brazil. The Company was notified by the U.S. Internal Revenue Service during December 2013 of assessments totaling $40,000 for the failure by the management of the Company prior to the December 12, 2012 share exchange to file certain information returns for the years 2008-2011. The Company requested but did not receive administrative relief from the assessments. The Company has entered into an agreement with the Internal Revenue Service to pay the outstanding balance over four months in installments of $10,000 each commencing August 15, 2014. The Company made the payment of the first installment of $ 10,000 |