ORBIT GAR ANT DRILLING INC. NOTES TO THE CONSOLID A TED FINANCIAL ST A TEMENTS (Continued) (Amounts as at March 31, 2008 and for the nine and three months ended March 31, 2008 and for the six and three months ended March 31, 2007 are unaudited) 12. INCOME T A XES Income tax expense comprises the following: March 31, March 31, March 31, March 31, June 30, 2008 2007 2008 2007 2007 (3 months) (3 months) (9 months) (6 months) (9 months) (unaudited) (unaudited) (unaudited) (unaudited) $$$$$ Current ............................... 1,465,411 634,803 3,897,207 852,133 2,082,857 F uture ................................ (269,452) (242,480) (1,792,421) (428,491) (898,599) 1,195,959 392,323 2,104,786 423,642 1,184,258 The income tax expense differs from the amount calculated by applying canadian statutory rates (federal and provincial) of 31.0 6% (March 31, 2007 and June 30, 2007, 34.43%) to the earnings before income taxes and non-controlling interest as follows: March 31, March 31, March 31, March 31, June 30, 2008 2007 2008 2007 2007 (3 months) (3 months) (9 months) (6 months) (9 months) (unaudited) (unaudited) (unaudited) (unaudited) $$$$$ Earnings before income taxes and non-controlling interest .............................. 4,019,879 1,080,628 10,065,278 1,134,633 3,167,631 Income taxes based on statutory rates ............ 1,248,373 372,048 3,125,772 390,642 1,090,581 Increase (decrease) of income taxes due to the following: Non-deductible expenses ..................... 9,361 2,735 28,083 15,845 19,904 Non-taxable portion of capital loss .............. ———— (31,946) Non-taxable share in net earnings of a company subject to significant influence .................... (39,593) — (87,986) — — Effect of corporate tax rate modification .......... (29,210) 25,342 (894,688) 50,683 76,025 Other items ............................. 7,028 (7,802) (66,395) (33,528) 29,694 T otal income taxes ........................ 1,195,959 392,323 2,104,786 423,642 1,184,258 F uture income taxes are based on differences between the accounting and tax values of assets and liabilities and consist of the following as at the dates presented: March 31, June 30, 2008 2007 (unaudited) $$ F uture income tax liabilities L ong-term investments .................................................. 72,858 81,710 Capital assets ........................................................ 2,255,864 2,777,226 Intangible assets ....................................................... 2,586,050 3,848,257 T otal future income tax liabilities ............................................ 4,914,772 6,707,193 F-22