Entity information:
NOTE 18 – INCOME TAXES

Income tax expense (benefit) for each of the years ended March 31 consists of the following:

  
  
March 31,
  
 
  
2017
    
2016
  
Current:
            
Federal
  
$
-
    
$
-
  
Foreign
    
14,431
      
38,715
  
State
    
-
      
-
  
Net Current
  
$
14,431
      
38,715
  
 
                
Deferred:
                
Federal
    
-
      
-
  
Foreign
    
-
      
(38,136
)
State
    
-
      
-
  
Net Deferred
    
-
      
(38,136
)
    Total tax provision
  
$
14,431
    
$
579
  

The significant components of deferred income tax expense (benefit) from operations before non-controlling interest for each of the years ended March 31 consist of the following: 

 
  
March 31,
  
 
  
2017
    
2016
  
Deferred tax expense (benefit)
  
$
-
    
$
(38,136
)
Net operating loss carry forward
    
652,283
      
1,291,744
  
Foreign Tax Credits
    
-
      
-
  
Less: Valuation Allowance
    
652,283
      
1,291,744
  
Net deferred tax expense
  
$
-
    
$
(38,136
)

The table below sets forth income tax expense (benefit) for 2017 and 2016 computed by applying the applicable United States federal income tax rate and is reconciled to the tax expense (benefit) computed at the effective income tax rate:

  
 
March 31,
 
 
 
2017
 
 
2016
 
Computed expected income tax (benefit)
 
$
652,283
 
 
$
(1,172,590
)
State tax benefit net of federal tax
 
 
-
 
 
 
-
 
Change in valuation allowance
 
 
652,283
 
 
 
1,100,645
 
Deferred expenses from foreign acquisition
 
 
-
 
 
 
-
 
Impairment loss on goodwill
 
 
-
 
 
 
-
 
Impairment loss on investments
 
 
410
 
 
 
18,244
 
Capitalized interest costs
 
 
-
 
 
 
72,759
 
Deferred Tax Assets from foreign subsidiaries
 
 
-
 
 
 
-
 
Other
 
 
-
 
 
 
 -  
Effective income tax rate
 
 
(0.0
%)
 
 
(0.0
%)

The deferred tax assets and liabilities as of March 31 consist of the following tax effects relating to temporary differences and carry forwards:

 
  
March 31,
  
 
  
2017
    
2016
  
Current deferred tax liabilities (assets):
            
      Deferred Acquisition Costs – Foreign taxes
  
$
-
    
$
-
  
Valuation allowance
    
-
      
-
  
Net current deferred tax liabilities (assets)
  
$
-
    
$
-
  
 
                
Noncurrent deferred tax (assets) liabilities:
                
    Deferred Acquisition Costs- Foreign taxes
  
$
-
    
$
(356,684
)
    Net Operating Losses
    
652,283
      
1,291,744
  
Valuation allowance
    
(652,283
)
    
(1,291,744
)
Non-Current net deferred tax (assets) liabilities
  
$
-
    
$
(356,684
)

The company has a book and tax carry forward of approximately $26 million. The company provides a full allowance against any tax benefit which may be realized in the future, if ever. Therefore, the financial statements do not reflect any current or deferred provisions for income taxes.