Deferred income taxes are determined using the liability method for the temporary differences between the financial reporting basis and income tax basis of the Company's assets and liabilities. Deferred income taxes are measured based on the tax rates expected to be in effect when the temporary differences are included in the Company's tax return. Deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases.
Operating loss carry-forwards generated during the period from May 5, 2016 (date of inception) through June 30, 2017 of approximately $150,638, will begin to expire in 2036. The Company applies a statutory income tax rate of 34%.
The Company had deferred income tax assets as of June 30, 2017 and June 30, 2016 as follows:
| | June 30, 2017 | | | June 30, 2016 | |
Loss carryforwards | | $ | 51,217 | | | $ | 21,575 | |
Less – accrued management fees | | | (4,760 | ) | | | (680 | ) |
Less - valuation allowance | | | (46,457 | ) | | | (20,895 | ) |
Total net deferred tax assets | | $ | - | | | $ | - | |
Tax years from inception to fiscal year ended June 30, 2016 are not yet filed and are open for examination by the taxing authorities.