The Company provides for income taxes under ASC 740 “Income Taxes”, ASC 740 requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. It also requires the reduction of deferred tax assets by a valuation allowance if based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The Company is subject to taxation in the United States. The Company has not recognized an income tax benefit for its operating losses generated based on uncertainties concerning its ability to generate taxable income in future periods. The tax benefit for the period presented is offset by a valuation allowance. For the year ended September 30, 2017, the Company has incurred a net loss of approximately $383,000. Net Operating Loss (“NOL”) carry forwards of approximately $664,000 will expire, if not utilized, through 2037. The deferred tax asset has been off-set by an equal valuation allowance.

The United States Congress and the Administration have approved an interest in reforming the US corporate income tax code on December 20, 2017. which will reduce corporate tax rate from 35% to 21%. The rate reduction would generally take effect on January 1, 2018. The carrying value of the Company’s deferred tax assets is also determined by the enacted US corporate income tax rate. Consequently, any changes in the US corporate income tax rate will cause an impact the carrying value of the Company’s deferred tax assets. Under new corporate income tax rate 21%, deferred income tax assets will decrease by $87,773 and valuation allowance will decrease by $87,773. As a result, the net effect of the tax reform enactment on financial statements is $nil as of September 30, 2017.