NOTE 5 – INCOME TAXES
The Company maintains deferred tax assets that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. These deferred tax assets consist of net operating loss carryforward. The net deferred tax asset has been fully offset by a valuation allowance because of the Company’s history of losses.
| August 31, 2017 | August 31, 2016 | |||||||
| Deferred Tax Assets: | ||||||||
| Net operating loss carryforward | $ | 33,910 | $ | 6,765 | ||||
| Total deferred tax assets before valuation allowance | 33,910 | 6,765 | ||||||
| Valuation allowance | (33,910 | ) | (6,765 | ) | ||||
| Net deferred tax assets | $ | — | $ | — | ||||
The Company provided a valuation allowance equal to the deferred income tax assets for the periods ended August 31, 2017 and 2016 because it was not known whether future taxable income will be sufficient to utilize the loss carryforward. The Company’s accumulated loss carryforward of $99,734 as of August 31, 2017 will start expiring in 2034.
Additionally, the future utilization of the net operating loss carryforward to offset future taxable income may be subject to an annual limitation as a result of ownership changes that have occurred and could occur in the future. If necessary, the deferred tax assets will be reduced by any carryforward that expire prior to utilization as a result of such limitations, with a corresponding reduction of the valuation allowance.
The Company does not have any uncertain tax positions or events leading to uncertainty in a tax position. The Company’s 2015, 2016 and 2017 Corporate Income Tax Returns are subject to Internal Revenue Service examination.