| 10. | Taxation |
Rebel FC and SCA Capital are incorporated in the British Virgin Islands and are not subject to income taxes under the current laws of the British Virgin Islands.
Pure Heart was incorporated in Singapore and is subject to Singapore corporate income tax at 17%. No income tax expenses for the years ended December 31, 2016 and 2015.
The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. For the year ended December 31, 2016 and 2015, the Company had no unrecognized tax benefits.
The Company does not anticipate any significant increase to its liability for unrecognized tax benefit within the next 12 months. The Company will classify interest and penalties related to income tax matters, if any, in income tax expense.
| As of December 31, | |||||||||
| 2016 | 2015 | ||||||||
| Income tax expense is comprised of: | |||||||||
| Current income tax | $ | - | $ | 3,109 | |||||
| Deferred income tax (income) expense | (9,287,817 | ) | 10,894,800 | ||||||
| Total (reverse) provision for income taxes | $ | (9,287,817 | ) | $ | 10,897,909 | ||||
Deferred income taxes are recognized for tax consequences in future years of differences between the tax bases of assets and liabilities and their reported amounts in the financial statements at each year-end and tax loss carry forwards. Deferred income tax was measured using the enacted income tax rates for the periods in which they are expected to be reversed. The tax effects of temporary differences that give rise to the following approximate deferred tax assets and liabilities as of December 31, 2016 and 2015 are presented below:
| As of December 31, | |||||||||
| 2016 | 2015 | ||||||||
| Unrealized fair value gains on long-term investment | $ | 1,606,983 | $ | 10,894,800 | |||||
The enterprise income tax payable as follows:
| As of December 31, | |||||||||
| 2016 | 2015 | ||||||||
| Income tax payable | $ | - | $ | - | |||||