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INCOME TAX
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAX

NOTE 13 – INCOME TAX

 

  A. Measurement of results for tax purposes under the Israeli Income Tax (Inflationary Adjustments) Law, 1985 (the “Inflationary Adjustment Law”)
     
    Commencing January 1, 2008, the results of operations of Integrity Israel for tax purposes have been measured on a nominal basis.
     
  B. Tax assessments
     
    For federal, state and local income tax purposes the Company remains open for examination by the tax authorities for the tax years from 2017 through 2020 under the general statute of limitations.
     
    Notwithstanding, pursuant and subject to the provisions of article 145 of the Income Tax Ordinance, Integrity Israel’s tax returns that were filed with the tax authority up to and including 2016 are considered final.
     
  C. Carryforward tax losses
     
    As of December 31, 2021, the Company had cumulative net operating losses (NOL) for US federal purposes of approximately $10.5 million. Integrity Israel has losses carry forward balances for Israeli income tax purposes of approximately $41.0 million to offset against future taxable income for an indefinite period of time.
     
  D. For the years ended December 31, 2021 and 2020, the main reconciling item between the statutory tax rate of the Company and the effective tax rate at the rate of 21.0% for 2021 and 2020, respectively, is the recognition of valuation allowance in respect of deferred taxes relating to accumulated net operating losses carried forward and other permanent and temporary differences due to the uncertainty of the realization of such deferred taxes and withholding taxes that were deducted by the Company’s customers.

 

 

GLUCOTRACK INC. (FORMERLY: INTEGRITY APPLICATIONS, INC.)

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

NOTE 13 – INCOME TAX (cont.)

 

  E. Deferred taxes result principally from temporary differences in the recognition of certain revenue and expense items for financial and income tax reporting purposes. Significant components of the Group’s future tax assets are as follows:

 

   2021   2020  
Composition of deferred tax assets:             
Provision for employee-related obligation   

6

     22  
Non-capital loss carry forwards   

11,654

     10,889  
Valuation allowance   

(11,660

)    (10,912 )