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NOTE 14. INCOME TAXES | 12 Months Ended
--- | ---
Nov. 30, 2015
Income Tax Disclosure [Abstract] |
NOTE 14. INCOME TAXES | The Company's Income tax expense consisted of:
|  | Years ended November 30, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Current: |  |  |  |  |  |  |  |  |
Canada |  | $ | — |  |  | $ | — |  |  | $ | — |
Foreign |  |  | 155 |  |  |  | 189 |  |  |  | 290 |
|  |  | 155 |  |  |  | 189 |  |  |  | 290 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Canada |  |  | (2 | ) |  |  | 74 |  |  |  | 3,606 |
Foreign |  |  | — |  |  |  | — |  |  |  | — |
|  |  | (2 | ) |  |  | 74 |  |  |  | 3,606 |
Income tax expense |  | $ | 153 |  |  | $ | 263 |  |  | $ | 3,896 |
The Company's Loss before income tax consisted of:
|  | Years ended November 30, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Canada |  | $ | (14,775 | ) |  | $ | (20,372 | ) |  | $ | (42,077 | )
Foreign |  |  | (17,024 | ) |  |  | (19,849 | ) |  |  | (16,787 | )
|  | $ | (31,799 | ) |  | $ | (40,221 | ) |  | $ | (58,864 | )
Effective April 1, 2013 the British Columbia provincial corporate tax rate increased from 10% to 11%. The Company's Income tax expense differed from the amounts computed by applying the Canadian statutory corporate income tax rates for the following reasons:
|  | Years ended November 30, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Loss before income taxes |  |  | (31,799 | ) |  | $ | (40,221 | ) |  | $ | (58,864 | )
Combined federal and provincial statutory tax rate |  |  | 26.00 | % |  |  | 26.00 | % |  |  | 25.67 | %
Income tax recovery based on statutory income tax rates |  |  | (8,268 | ) |  |  | (10,457 | ) |  |  | (15,110 | )
Increase (decrease) attributable to: |  |  |  |  |  |  |  |  |  |  |  |
(Non-deductible) taxable expenditures |  |  | 3,175 |  |  |  | 3,339 |  |  |  | 2,913 |
Non-taxable unrealized gain (loss) on derivative financial instruments |  |  | — |  |  |  | — |  |  |  | 615 |
Effect of different statutory tax rates on earnings of subsidiaries |  |  | (2,619 | ) |  |  | (3,027 | ) |  |  | (2,773 | )
Effect of statutory rate change |  |  | — |  |  |  | — |  |  |  | (1,916 | )
Effect of tax losses expired |  |  | 3,878 |  |  |  | 1,424 |  |  |  | — |
Change in valuation allowance |  |  | 4,480 |  |  |  | 9,357 |  |  |  | 20,248 |
Other |  |  | (493 | ) |  |  | (373 | ) |  |  | (81 | )
Income tax expense |  | $ | 153 |  |  | $ | 263 |  |  | $ | 3,896 |
Components of the Company's deferred income tax assets (liabilities) are as follows:
|  | At November 30, |
|  | 2015 |  |  | 2014 |
Deferred tax income assets: |  |  |  |  |  |
Asset retirement obligation |  | $ | 186 |  |  | $ | 257 |
Net operating loss carry forwards |  |  | 212,619 |  |  |  | 214,594 |
Capital loss carry forwards |  |  | 31,561 |  |  |  | 37,002 |
Mineral properties |  |  | 16,596 |  |  |  | 19,524 |
Property and equipment |  |  | 198 |  |  |  | 354 |
Investment in affiliates |  |  | 43,315 |  |  |  | 42,343 |
Share issuance costs |  |  | 776 |  |  |  | 1,327 |
Unpaid interest expense |  |  | 4,458 |  |  |  | 4,458 |
Investment tax credit |  |  | 2,938 |  |  |  | 3,429 |
Other |  |  | 2,339 |  |  |  | 2,550 |
|  |  | 314,986 |  |  |  | 325,838 |
Valuation allowances |  |  | (276,521 | ) |  |  | (281,071 | )
|  |  | 38,465 |  |  |  | 44,767 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Investment in affiliates |  |  | (36,133 | ) |  |  | (42,176 | )
Mineral properties |  |  | (11,315 | ) |  |  | (13,208 | )
Capitalized assets & other |  |  | (1,052 | ) |  |  | (1,102 | )
Unrealized gain on investments |  |  | — |  |  |  | (5 | )
Investment tax credit |  |  | (764 | ) |  |  | (882 | )
|  |  | (49,264 | ) |  |  | (57,373 | )
Net deferred income tax liabilities |  | $ | (10,799 | ) |  | $ | (12,606 | )
Net deferred income tax asset, as presented in the balance sheet |  | $ | 9,711 |  |  | $ | 11,445 |
Net deferred income tax liability, as presented in the balance sheet |  | $ | (20,510 | ) |  | $ | (24,051 | )
Net operating losses available to offset future taxable income are as follows:
Year of Expiry |  | U.S. |  | Canada |
2024 |  | $ | 1,032 |  | $ | — |
2025 |  |  | 1,246 |  |  | — |
2026 |  |  | 13,382 |  |  | 24,498 |
2027 |  |  | 18,493 |  |  | 3,935 |
2028 |  |  | 85 |  |  | 519 |
2029 |  |  | 11,223 |  |  | 12,238 |
2030 |  |  | 10,916 |  |  | 17,607 |
2031 |  |  | 16,580 |  |  | 16,519 |
2032 |  |  | 306,333 |  |  | 28,940 |
2033 |  |  | 14,529 |  |  | 21,642 |
2034 |  |  | 15,606 |  |  | 10,021 |
2035 |  |  | 16,833 |  |  | 7,605 |
|  | $ | 426,258 |  | $ | 143,524 |
Future use of U.S. loss carry-forwards is subject to certain limitations under provisions of the Internal Revenue Code including limitations subject to Section 382, which relates to a 50% change in control over a three-year period, and are further dependent upon the Company attaining profitable operations. Ownership changes occurred on January 22, 2009 and on December 31, 2012 and the U.S. tax losses related to NOVAGOLD Resources Alaska Inc. and its investment in Donlin Gold LLC for the prior three year periods prior to the change in control may be subject to limitation under Section 382. Accordingly, the Company's ability to use these losses may be limited or they may expire un-utilized. Losses incurred to date may be further limited if a subsequent change in control occurs. Uncertain tax position There were no unrecognized tax benefits at November 30, 2015, 2014 and 2013. The Company recognizes any interest and penalties related to uncertain tax positions, if any, as income tax expense. At November 30, 2015, 2014 and 2013, there were no interest and penalties related to uncertain tax positions. The Company is subject to income taxes in Canada and the United States. The Company is currently under audit by the Canada Revenue Agency regarding transactions undertaken by one of the Company's Canadian subsidiaries. The Company is currently under audit by the Internal Revenue Service regarding one of its U.S. subsidiaries. With few exceptions, the tax years that remain subject to examination as of November 30, 2015 are 2008 to 2015 in Canada and 1998 to 2015 in the United States. The Company has recognized $9,711 (2014: $11,445, 2013: $9,728) of deferred tax assets that are dependent on the reversal of existing taxable temporary differences. The Company has suffered a loss in the current and prior period in the tax jurisdictions to which the deferred tax assets relate. The Company has undertaken a tax planning strategy in the current and prior period to merge Canadian entities when required to access the deferred tax assets to offset future increases in taxable income of the Canadian entities. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax asset. Significant pieces of objective negative evidence evaluated included the cumulative loss incurred as at November 30, 2015 and the decline in metal prices. Such objective evidence limits the ability to consider other subjective evidence such as managements' projections for future growth. On the basis of this evaluation, as of November 30, 2015, a valuation allowance of $276,521 (2014: $281,071, 2013: $276,630) inclusive of valuation allowance for investment tax credits has been recorded in order to measure only the portion of the deferred tax asset that more likely than not will be realized. The amount of the deferred tax asset considered realizable; however, could be adjusted if estimates of future taxable income during the carry forward period are reduced or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as management's projections for growth.

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- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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