NOTE 5 – INCOME TAXES
Deferred tax assets and liabilities consist of the following:
| March 31 | ||||||||
| 2017 | 2016 | |||||||
| Deferred tax assets: | ||||||||
| Net operating loss carryforwards & capital loss carry forward | 670,500 | 660,500 | ||||||
| Less: valuation allowance | (670,500 | ) | (660,500 | ) | ||||
| - | - | |||||||
The provision for income taxes differs from the amount computed by applying the US statutory income tax rate as follows:
| March 31 | ||||||||
| 2017 | 2016 | |||||||
| Provision for expected federal statutory rate | (35 | )% | (35 | )% | ||||
| Permanent differences – equity based compensation | 8 | % | 0 | % | ||||
| Loss for which no benefit is available or a valuation allowance | ||||||||
| Has been recorded | 27 | % | 35 | % | ||||
At March 31, 2017, Newtown had approximately $1,923,000 of net operating loss carry forwards (“NOL’s”) available which expires in various years beginning in 2030. In addition, there is a $25,000 capital loss carryover, which is fully reserved as well. This capital loss expires in 2026. The deferred tax asset and related valuation did not increase during the year ended March 31, 2017. The utilization of the net operating loss carryforward has been limited as to its use pursuant to the Internal Revenue Code Section 382 due to the recent and past changes in ownership of Newtown. The benefits of these NOL’s may be reduced in the future if Newtown is successful in establishing a new business. Newtown’s federal and state income tax returns for the years 2011 through 2014 remain open for audit by applicable regulatory authority. The Company has not filed Federal and State income tax returns for the fiscal years ending March 31, 2015, 2016 and 2017.