NEW OROPERU RESOURCES INC.  Notes to Consolidated Financial Statements (Expressed in US dollars)  Years ended December 31, 2012 and 2011  7. INCOME TAXES  (Continued)  8. RELATED PARTY TRANSACTION S  Effective January 1,2012, the Canadian federal corporate tax rate decreased from 16.5% to 15.0% and the British  Columbia provincial tax remained consistent at 10.0%. The overall reduction in tax rates has resulted in a  decrease in the Company’s statutory tax rate from 26.5% to 25.0%.  The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax  asset is recognized consist of the following amounts: The reconciliation of income tax provision computed at the Canadian statutory tax  rate of 25.0% (2011– 26.5%) to  the reported income tax provision is as follows: Key management personnel compensation consists of the Chief Executive Officer and Chief Financial Officer  and  Directors of the Company . Aggregate compensation consists of the following:  2012  2011  Deferred income tax assets Tax value in excess of book value of equipment $  4,231  $  4,231  Non-capital losses carried forward 1,770,052  1,582,793  $  1,774,283  $  1,587,024  2012  2011  Loss for the year $  (344,247)  $  (650,933)  Statutory income tax rate 25.0%  26.5%  Income tax benefit computed at statutory rates (86,062)  (172,497)  Items non-deductible for income tax purposes  6,661  57,774  Foreign tax rates different from statutory rates 32,710  41,915  Effect of change in tax rate -  9,229  Impact of foreign exchange on tax assets and liabilities -  11,012  Unused tax losses and tax offsets not recognized in tax asset 46,691  52,567  Total income taxes  $  -  $  -  2012 2011 Short term employee benefits $ 215,232 $ 186,624  Share-based payments 15,277 101,352  $ 230,509 $ 287,976  20 