|12 Months Ended|
Nov. 30, 2018
|TAXES [Text Block]||
NOTE 16 – TAXES
a. Corporate taxation in the U.S.
The applicable corporate tax rate for the Company and the U.S. subsidiaries is 21% following the U.S. Tax Cuts and Jobs Act (the “TCJA”), excluding state tax and local tax. On December 22, 2017, the TCJA was signed into law, which among other changes reduced the federal corporate income tax rate from 35% to 21%, effective January 1, 2018.
As of November 30, 2018, the Company has an accumulated tax loss carryforward of approximately $18.1 million (as of November 30, 2017, approximately $12.8 million). Under U.S. tax laws, subject to certain limitations, carryforward tax losses expire 20 years after the year in which incurred. Utilization of the U.S. net operating losses may be subject to substantial annual limitation due to the "change in ownership" provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization.
b. Corporate taxation in Israel
The Israeli Subsidiaries are taxed in accordance with Israeli tax laws. The corporate tax rates applicable to 2018 and 2017 are 23% and 24% respectively.
As of November 30, 2018, the Israeli Subsidiaries has an accumulated tax loss carryforward of approximately $7.23 million (as of November 30, 2017, approximately $5.8 million). Under the Israeli tax laws, carryforward tax losses have no expiration date.
c. Corporate taxation in Belgian
The Belgian Subsidiaries are taxed according to Belgian tax laws. The corporate tax rate applicable to 2020, 2019- 2018 and 2017 are 25%, 29.58% and 34%.
As of November 30, 2018, the Belgian Subsidiaries has an accumulated tax loss carryforward of approximately $5.9 million (€ 5.2 million), (as of November 30, 2017 $15.8 million). Under the Belgian tax laws there are limitation on accumulated tax loss carryforward deductions of Euro 1 million per year.
d. Corporate taxation in Korea
The basic Korean corporate tax rates are currently: 10% on the first KRW 200 million of the tax base, 20% up to KRW 20 billion , 22% up to KRW 300 billion and 25% for tax base above KRW 300 billion.
As of November 30, 2018, CureCell has an accumulated tax loss carryforward of approximately $3.2 million (KRW 3,421 million).
e. Deferred Taxes
The following table presents summary of information concerning the Company’s deferred taxes as of the periods ending November 30, 2018 and 2017 (in thousands):
Realization of deferred tax assets is contingent upon sufficient future taxable income during the period that deductible temporary differences and carry forwards losses are expected to be available to reduce taxable income. As the achievement of required future taxable income is not considered more likely than not achievable, the Company and all its subsidiaries except MaSTherCell, Atvio and CureCell have recorded full valuation allowance.
The changes in valuation allowance are comprised as follows:
f. Reconciliation of the Theoretical Tax Expense to Actual Tax Expense
The main reconciling item between the statutory tax rate of the Company and the effective rate is the provision for full valuation allowance with respect to tax benefits from carry forward tax losses and changes in cooperate tax rate in the U.S. and Belgium.
g. Uncertain Tax Provisions
ASC Topic 740, “Income Taxes” requires significant judgment in determining what constitutes an individual tax position as well as assessing the outcome of each tax position. Changes in judgment as to recognition or measurement of tax positions can materially affect the estimate of the effective tax rate and consequently, affect the operating results of the Company. As of November 30, 2018, the Company has not accrued a provision for uncertain tax positions.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef