NOTE E – INCOME TAX
For the year ended June 30, 2017, the Company has incurred net losses and therefore, has no tax liability. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately $50,034 at June 30, 2017, and will expire beginning in the year 2034.
The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 34% to the net loss before provision for income taxes as follows:
| For the Year Ended | ||||||||
| June 30, 2017 | June 30, 2016 | |||||||
| Income tax expense (benefit) at statutory rate | $ | (16,877 | ) | (5,461 | ) | |||
| Change in valuation allowance | 16,877 | 5,461 | ||||||
| Income tax expense | $ | — | $ | — | ||||
Net deferred tax assets consist of the following components as of June 30, 2017 and June 30, 2016
| For the Year Ended | ||||||||
| June 30, 2017 | June 30, 2016 | |||||||
| Gross deferred tax asset | $ | 22,850 | $ | 5,972 | ||||
| Valuation allowance | (22,850 | ) | (5,972 | ) | ||||
| Net deferred tax asset | $ | — | $ | — | ||||
Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $67,205 for federal income tax reporting purposes could be subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years.
The Company has no uncertain tax positions that require the Company to record a liability.
The Company had no accrued penalties and interest related to taxes as of June 30, 2017.