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 1465411 634803 3897207 852133 2082857 F uture 269452 242480 1792421 428491 898599 1195959 392323 2104786 423642 1184258 The income tax expense differs from the amount calculated by applying canadian statutory rates federal and provincial of 310 6 March 31 2007 and June 30 2007 3443 to the earnings before income taxes and noncontrolling 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 noncontrolling interest 4019879 1080628 10065278 1134633 3167631 Income taxes based on statutory rates 1248373 372048 3125772 390642 1090581 Increase decrease of income taxes due to the following Nondeductible expenses 9361 2735 28083 15845 19904 Nontaxable portion of capital loss 31946 Nontaxable share in net earnings of a company subject to significant influence 39593 87986 Effect of corporate tax rate modification 29210 25342 894688 50683 76025 Other items 7028 7802 66395 33528 29694 T otal income taxes 1195959 392323 2104786 423642 1184258 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 ongterm investments 72858 81710 Capital assets 2255864 2777226 Intangible assets 2586050 3848257 T otal future income tax liabilities 4914772 6707193 F22