INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2014

	Year ended September 30,
	2014				2013
Current (benefit) provision:
United States – Federal
Before operating loss carryforwards		$	886,000			$	-
Benefit of operating loss carryforwards		(886,000		)		-
After operating loss carryforwards		-				-
United States – State		(1,000		)		(82,000		)
		(1,000		)		(82,000		)
Canadian		1,312,000				45,000
Total current		1,311,000				(37,000		)

Deferred benefit:
United States		-				82,000
Canadian		(707,000		)		(1,542,000		)
Total deferred		(707,000		)		(1,460,000		)
		$	604,000			$	(1,497,000	)

	Year ended September 30,
	2014				2013
Tax provision (benefit) computed by applying statutory rate		$	447,000			$	(3,521,000	)
Increase in the valuation allowance		615,000				2,978,000
Additional effect of the foreign tax provision on the total tax provision		(467,000		)		(1,018,000		)
Expiration of foreign tax credit carryforward		-				249,000
State income tax benefit		(31,000		)		(365,000		)
Other		40,000				180,000
		$	604,000			$	(1,497,000	)

	September 30,
	2014				2013
Deferred income tax assets:
U.S. tax effect of deferred Canadian taxes		$	248,000			$	526,000
Foreign tax credit carryover		3,023,000				1,715,000
Alternative minimum tax credit carryover		460,000				460,000
U.S. federal net operating loss carryover		4,017,000				4,903,000
Tax basis of investment in land and residential real estate in excess of book basis		1,842,000				1,756,000
Property and equipment accumulated tax depreciation and depletion in excess of book under U.S. tax law		4,069,000				5,196,000
Liabilities accrued for books but not for tax under U.S. tax law		5,112,000				4,338,000
Liabilities accrued for books but not for tax under Canadian tax law		2,731,000				2,409,000
Other		2,098,000				2,085,000
Total gross deferred tax assets		23,600,000				23,388,000
Less valuation allowance		(20,869,000		)		(20,979,000		)
Net deferred income tax assets		2,731,000				2,409,000

Deferred income tax liabilities:
Property and equipment accumulated tax depreciation and depletion in excess of book under Canadian tax law		(3,460,000		)		(3,957,000		)
Other		(94,000		)		(95,000		)
Total deferred income tax liabilities		(3,554,000		)		(4,052,000		)
Net deferred income tax liability		$	(823,000	)		$	(1,643,000	)

Net deferred income tax liability is included in the Consolidated Balance Sheets as follows:

	September 30,
	2014				2013
Current deferred income tax asset
(included in other current assets)		$	378,000			$	247,000
Deferred income tax liability		(1,201,000		)		(1,890,000		)
Net deferred income tax liability		$	(823,000	)		$	(1,643,000	)

	Year ended September 30,
	2014				2013
Balance at beginning of year		$	704,000			$	722,000
Accrued interest related to tax positions taken		14,000				14,000
Translation adjustments		(58,000		)		(32,000		)
Balance at end of year		$	660,000			$	704,000

Included below is a summary of the tax years, by jurisdiction, that remain subject to examination by taxing authorities at September 30, 2014: