Jaguar Uranium Corp. Income Taxes Disclosure

NOTE 11: INCOME TAX

 

A reconciliation between the effective income tax rate and the federal statutory income tax rate is as follows:

 

		December 31,				December 31,
		2025				2024
Domestic		$	—			$	(1,059,914	)
Foreign			—				—
Income Tax Expense (Recovery)		$	—			$	(1,059,914	)

 

The Company paid $0 ($0 - 2024) of income tax during the year.

 

The domestic and foreign components of income (loss) before income taxes are as follows:

 

Domestic		$	(2,198,755	)		$	(7,267,133	)
Foreign			(115,767	)			445,243
Income Tax Expense (Recovery)		$	(2,314,522	)		$	(6,821,890	)

 

		December 31, 2025								December 31, 2024
Reconciliation of expected tax based on income (loss)		Amount ($)				Percent (%)				Amount ($)				Percent (%)
Loss from Continuing Operations Before Income Tax Expense			(2,314,522	)							(6,821,890	)
Statutory Income Tax Rate			(347,178	)			15.0	%			(1,023,283	)			15.0	%
Canadian Provincial Tax Net of Federal Income Tax Effect			(169,461	)			7.3	%			(585,458	)			8.6	%
Movement of Valuation Allowance			463,875				-20.0	%			961,883				-14.1	%
Stock Based Compensation			100,573				-4.3	%			154,572				-2.3	%
Other Permanent Adjustments			(1,187	)			0.1	%			(61,830	)			0.9	%
Difference in Foreign Tax Rates			(46,623	)			2.0	%			(263,590	)			3.9	%
Change in Enacted Tax Rates and other			-				0.0	%			(205,578	)			3.0	%
Income tax expense (recovery)			-				0.0	%			(1,023,283	)			15.0	%

 

The Company’s income tax (recovery) is allocated as follows:

 

Current tax expense		$	-			$	-
Deferred tax Expense		$	-			$	(1,059,914	)

Deferred Income Taxes

 

The significant components of the deferred tax assets and liabilities consisted of the following:

 

		December 31, 2025				December 31, 2024
Deferred Tax Assets
Share issuance costs - 20(1)(e )		$	1,741			$	2,321
Class 14.1 asset			202,668				130,069
Non-capital losses carried forward			1,752,693				1,390,707
Resource pools - Mineral Properties (Argentina)			271,765				311,176
Total Gross Deferred Tax Assets			2,228,867				1,834,273
Valuation Allowance			(2,193,631	)			(1,801,937	)
Total Deferred Tax Assets, Net of Valuation Allowance		$	35,236			$	32,335
Deferred Tax Liabilities
Mineral properties		$	(1,400,000	)		$	(1,400,000	)
Unrealized FX gain on account of capital			(35,236	)			(32,335	)
Total Gross Deferred Tax Liabilities			(1,435,236	)			(1,432,335	)
Net Deferred Tax Liabilities		$	(1,400,000	)		$	(1,400,000	)

 

In assessing the realizability of deferred tax assets, management considers all positive and negative evidence to determine whether it is more likely than not that some portion or all of 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. As of December 31, 2025, the Company recorded a valuation allowance of $2,193,631.

 

As of December 31, 2025, the Company had Canadian federal net operating loss carryforwards ("NOLs") of $1,930,956, which have a 20-year expiration period and will begin to expire in 2041.

 

In assessing the realizability of deferred tax assets, management considers all positive and negative evidence to determine whether it is more likely than not that some portion or all of 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.

 

The Company had Canadian federal net operating loss carryforwards (“NOLs”), which expire as follows:

 

2041		$	59,919
2042			147,694
2043			385,623
2044			275,927
2045			1,061,794
Total		$	1,930,956

 

The Company had Colombian net operating loss carryforwards ("NOLs"), which expire as follows:

 

2034		$	968,436
2035			804,941
2036			1,501,549
2037			241,403
Total		$	3,516,329