LOM 2023 Annual Report - Report - Page 50
LOM
2021 ANNUAL REPORT
11. FUTURE LEASE PAYMENTS
The Company leases office space under operating leases for certain of its operations. Future annual minimum lease payments
(excluding real estate taxes and maintenance costs) are as follows:
For the Years Ending December 31
Amount
2022
$165,526
2023
$68,369
2024
$34,184
Total
$268,079
Operating lease rent expense (including real estate taxes and maintenance costs) were $199,820 (2020 – $209,343).
12. INCOME TAXES
The Company accounts for income taxes in accordance with ASC 740 “Income Taxes” (“ASC 740”). ASC 740 clarifies the
accounting for uncertainty in income taxes recognized in financial statements and requires the impact of a tax position to be
recognized in the financial statements if that position is more likely than not of being sustained by the taxing authority. ASC 740
also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and
transition.
The Company is not subject to, and does not anticipate becoming subject to, income taxes in any jurisdiction in which it currently
operates, other than in the United Kingdom and the Philippines. LOM (UK) Limited and Global Admin Inc. are subject to income
taxes. The Company has assessed and concluded that, no uncertain tax positions were required to be recorded, and the Company
has not recognized any penalties, interest or any tax effect related to uncertain tax positions.
A reconciliation of the statutory income tax rates applied to the Company’s net income from LOM (UK) Limited and Global Admin
Inc for the years ended December 31, 2021 and 2020 is as follows:
Provision for income taxes consist of the following:
2021
2020
$23,442
$32,333
$1 ,490
$2,528
($10,487)
($35,554)
$1,042
$693
Deferred tax movement
($2,680)
$32,347
Current tax charge/(credit) for the year
$12,807
$32,347
Income tax benefit for foreign operations at statutory
rate in effect of 19%-25% (2020: 19%)
Non-deductible expenses
Capital allowance in excess of depreciation
Unutilized tax losses carried forward
Tax losses of $134,647 (2020: $178,821) are available to carry forward to offset against future profits. The standard rate of tax
applied to the reported result on ordinary activities of the companies range from 19%-25% (2020: 19%).
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