NOTE 6. INCOME TAXES
The Company recognizes deferred income tax liabilities and assets for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. The Company has not incurred any income tax liabilities due to accumulated net losses.
For the fiscal year ended July 31, 2017, no taxable income was generated. All tax years are open for review. The Company had a net loss of $99,174 for the year ended July 31, 2017 and $19,333 for the same period in 2016. As of July 31, 2017, the Company’s net operating loss carry forward was $118,507, which will begin to expire in year 2036.
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Years Ended |
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July 31, |
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2017 |
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2016 |
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Federal income tax benefit attributable to: |
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Current operations |
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$ |
41,477 |
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$ | 6,767 |
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Less: valuation allowance |
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(41,477 | ) |
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(6,767 | ) |
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Net provision for Federal income taxes |
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$ | - |
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$ | - |
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Components of net deferred tax assets, including a valuation allowance, are as follows:
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Period ending |
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July 31, |
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July 31, |
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2017 |
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2016 |
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Deferred tax asset attributable to: |
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Net operating loss carry over |
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$ |
118,507 |
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$ | 19,333 |
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Net operating losses utilized |
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- |
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- |
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Less: valuation allowance |
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(118,507 | ) |
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(19,333 | ) |
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Net deferred tax asset |
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$ | - |
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$ | - |
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