NOTE 5. INCOME TAXES
As of December 31, 2016, the Company had net operating loss carry forwards of approximately $188,383 that may be available to reduce future years’ taxable income through 2036. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.
The provision for Federal income tax consists of the following:
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For the Years Ended |
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December 31, |
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2016 |
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2015 |
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Federal income tax benefit attributable to: |
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Current Operations |
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$ | 19,845 |
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$ | 44,205 |
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Less: valuation allowance |
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(19,845 | ) |
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(44,205 | ) |
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Net provision for Federal income taxes |
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$ | - |
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$ | - |
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The tax effects of temporary differences and carry forwards that give rise to significant portions of deferred tax assets and liabilities consist of the following:
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December 31, |
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December 31, |
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Deferred tax asset attributable to: |
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Net operating loss carryover |
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$ | 64,050 |
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$ | 44,205 |
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Less: valuation allowance |
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(64,050 | ) |
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(44,205 | ) |
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Net deferred tax asset |
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$ | - |
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$ | - |
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The difference between the effective rate reflected in the provision for income taxes on loss before taxes and the amounts determined by applying the applicable statutory U.S. tax rate are analyzed below:
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2016 |
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2015 |
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Statutory tax benefit |
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(34 | )% |
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(34 | )% |
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Permanent items |
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- |
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- |
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Change in deferred tax asset valuation allowance |
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34 |
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34 |
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Provision for income taxes |
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- |
% |
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- |
% |
For the year ended December 31, 2016 and 2015, the Company had no unrecognized tax benefits and related interest and penalties expenses. Currently, the Company is not subject to examination by major tax jurisdictions.