Note 7    Income Taxes

A reconciliation of the income tax provision computed at statutory rates to the reported tax provision is as follows:

The component of the Company’s deferred tax asset is as follows:

The Company has a valuation allowance against the full amount of its net deferred tax assets due to the uncertainty of realization of the deferred tax assets.

At November 30, 2017, the Company has incurred accumulated net operating losses in the United States of America totalling $55,540 which are available to reduce taxable income in future taxation years.

These losses expire as follows:

The 2015 and 2016 tax returns remain open to examination by federal tax authorities.

The Company recorded no income tax expense for the year ended November 30, 2017 and the period ended November 30, 2016 due to losses incurred.

On December 22, 2017, the United States Government passed new tax legislation that, among other provisions, will lower the corporate tax rate from 35% to 21%.  In addition to applying the new lower corporate tax rate in 2018 and thereafter to any taxable income we may have, the legislation affects the way we can use and carry forward net operating losses previously accumulated and results in a revaluation of deferred tax assets recorded on our balance sheet.  Given that the deferred tax assets are offset by a full valuation allowance, these changes will have no net impact on the Company’s financial position and net loss. However, when we become profitable, we will receive a reduced benefit from such deferred tax assets. Had this legislation passed prior to our November 30, 2017 fiscal year-end, the effect of the legislation would have been a reduction in deferred tax assets and the corresponding valuation allowance of $7,221.