NOTE 6–INCOME TAXES
A reconciliation of the income tax provision computed at statutory rates to the reported income tax provision for the years ended December 31, 2016 and 2015 is as follows:
| As of December 31, 2016 |
As of December 31, 2015 |
|||||||
| Statutory tax rate | 34 | % | 34 | % | ||||
| Net loss for the year before income taxes | $ | (212,564 | ) | $ | (92,755 | ) | ||
| Expected income tax recovery | (72,000 | ) | (32,000 | ) | ||||
| Change in unrecognized deferred tax assets | 72,000 | 32,000 | ||||||
| Income tax expense | $ | - | $ | - | ||||
The significant components of the Company’s deferred income tax assets and liabilities after applying enacted corporate tax rates at December 31, 2016 and 2015 are as follows:
| As of December 31, 2016 |
As of December 31, 2015 |
|||||||
| Deferred tax assets: | ||||||||
| Net operating loss carry-forwards | $ | 104,000 | $ | 32,000 | ||||
| Valuation allowance | (104,000 | ) | (32,000 | ) | ||||
| Net deferred tax assets | $ | - | $ | - | ||||
At December 31, 2016, the Company has accumulated non-capital losses totaling $305,000, which may be available to carry forward and offset future years’ taxable income. The losses expire in various amounts starting in 2035.
Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and carry-forwards are expected to be available to reduce taxable income. As the achievement of required future taxable income is uncertain, the Company recorded a valuation allowance.