Entity information:

NOTE 5 - PROVISION FOR INCOME TAXES

 

The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 34% to the net loss before provision for income taxes for the following reasons:

 

 

 

September 30,

2017

 

 

September 30,

2016

 

Income tax expense at statutory rate

 

 $ 764

 

 

 $ 14,766

 

Valuation allowance

 

 

 (764 )

 

 

 (14,766 )

Income tax expense

 

 $ -

 

 

 $ -

 

 

Net deferred tax assets consist of the following components as of:

 

 

 

September 30,

2017

 

 

September 30,

2016

 

Net operating loss carry forward

 

 $ 32,042

 

 

 $ 31,278

 

Valuation allowance

 

 

 (32,042 )

 

 

 (31,278 )

Net deferred tax asset

 

 $ -

 

 

 $ -

 

 

Utilization of the net operating loss (“NOL”) carry forwards, of approximately $94,241 for federal income tax reporting purposes, is subject to an annual limitation due to ownership change that occurred during the year ended September 30, 2017 and any changes in ownership that may occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”). These ownership changes may limit the amount of the NOL carry forwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the outstanding stock of a company by certain stockholders. The Company does not believe that the recent changes to the Code will have any material effect on its ability to use the NOL.