FOR AGE ORBIT INC. NOTES TO THE CONSOLID A TED FINANCIAL ST A TEMENTS (Continued) Y ears ended January 31, 2007 and 2006 9. SHARE C APIT AL (Continued) On January 30, 2007, the company issued 100,000 class F shares in consideration of an investment in 9161-9254 Qu ? ebec Inc. in the amount of $100,000 (see Note 13). During the year 2007, the company redeemed 3,170 class I shares for a cash consideration of $53,242. 10. INCOME T A XES Income tax expense comprises the following: 2007 2006 $$ Current ................................................................ 3,097,617 552,232 F uture ................................................................. 75,692 14,615 3,173,309 566,847 The income tax expense differs from the amount calculated by applying canadian statutory rates (federal and provicial) of 34.08 % for January 31, 2007 (January 31, 2006, 29.34%) to the earnings before income taxes and non-controlling interest as follows: 2007 2006 $$ Earnings before income taxes and non-controlling interest ............................... 9,444,527 1,996,417 Income taxes based on statutory rates ............................................ 3,218,695 585,716 Increase (decrease) of income taxes due to the following: Non-deductible expenses .................................................... 43,619 13,581 Non-taxable portion of capital loss (gain) .......................................... 7,965 (743) Effect of corporate tax rate modification .......................................... (41,852) (34,877) Non-taxable share in earnings (loss) of company subject to significant influence .................. (22,085) (7,176) Effect of refundable taxes payable .............................................. (18,173) — Other items ............................................................. (14,860) 10,346 T otal income taxes ........................................................ 3,173,309 566,847 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: 2007 2006 $$ F uture income tax liabilities L ong-term investments ........................................................ 64,792 64,792 Capital assets .............................................................. 245,367 211,319 310,159 276,111 F-39