NOTE 12 - INCOME TAX
The deferred tax asset as of March 31, 2017 and 2016 consisted of the following:
| 2017 | 2016 | |||||||
| Net operating loss carryforwards | $ | 5,364,553 | $ | 4,936,193 | ||||
| Less valuation allowance | (5,364,553 | ) | (4,936,193 | ) | ||||
| $ | — | $ | — | |||||
Management provided a deferred tax asset valuation allowance equal to the potential benefit due to the Company’s loss. When the Company demonstrates the ability to generate taxable income, management will re-evaluate the allowance. The Company has not filed its tax returns for the years ending March 31, 2014, 2015, 2016 and 2017.
As of March 31, 2017, the Company has net operating loss carryforward of $14,774,312 which is available to offset future taxable income that expires by year 2034.
Reconciliation between the provision for income taxes and the expected tax benefit using the federal statutory rate of 34% for 2016 and 2015 is as follows:
| 2017 | 2016 | |||||||
| Income tax benefit at federal statutory rate | (34.00 | )% | (34.00 | )% | ||||
| Foreign tax rate difference | 1.49 | % | 1.49 | % | ||||
| State income tax benefit, net of effect on federal taxes | (3.80 | )% | (3.80 | )% | ||||
| Increase in valuation allowance | 36.31 | % | 36.31 | % | ||||
| Income tax expense | — | — | ||||||