NOTE 5 – INCOME TAXES
The provision (benefit) for income taxes for the years ended December 31, 2016 and 2015 differs from the amount which would be expected as a result of applying the statutory tax rates to the losses before income taxes due primarily to changes in the valuation allowance to fully reserve net deferred tax assets.
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.
| December
31, 2016 |
December 31, 2015 |
|||||||
| $ | $ | |||||||
| Deferred tax assets: | ||||||||
| Net operating loss before non-deductible items | (33,122 | ) | 55,854 | |||||
| (Less)/Add: non-deductible (income) / loss | - | (75,000 | ) | |||||
| Net operating loss after non-deductible items | (33,122 | ) | (19,146 | ) | ||||
| Tax rate | 15 | % | 15 | % | ||||
| Total deferred tax assets | 4,968 | 2,872 | ||||||
| Less: Valuation allowance | (4,968 | ) | (2,872 | ) | ||||
| Net deferred tax assets | - | - | ||||||
| December 31, 2016 |
December 31, 2015 |
|||||||
| $ | $ | |||||||
| Components of deferred tax assets: | ||||||||
| Non capital tax loss carry forwards | 8,952 | 3,983 | ||||||
| Less: valuation allowance | (8,952 | ) | (3,983 | ) | ||||
| Net deferred tax asset | - | - | ||||||
The Company has provided a valuation allowance against the full amount of the deferred tax asset due to management’s uncertainty about its realization. As of December 31, 2016, the Company had approximately $59,678 in tax loss carryforwards that can be utilized future periods to reduce taxable income, and expire by the year 2036.