NOTE 7 – INCOME TAXES
The Company provides for income taxes under ASC 740, "Income Taxes”. ASC 740 requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. It also requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.
The Company is subject to taxation in the US. The Company’s income tax rate was 34% for 2016 and 2015.
The provision for income taxes in US consists of the following:
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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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$ | 61,358 |
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$ | - |
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Timing differences, Stock based compensation |
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(32,408 | ) |
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- |
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Less: valuation allowance |
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(28,950 | ) |
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- |
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Net provision for Federal income taxes |
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$ | - |
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$ | - |
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Income tax years for 2014 and 2015 are open to examination by the taxing authorities.
The Company is subject to taxation in the Great Britain. The Company’s income tax rate was 20% for 2016 and 2015.
The provision for income taxes in Great Britain consists of the following:
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Years ended |
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December 31, |
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2016 |
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2015 |
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Current operations |
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$ | 9,751 |
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$ | (947 | ) |
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Less: valuation allowance |
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(9,751 | ) |
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947 |
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Net refundable amount |
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$ | - |
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$ | - |
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