Entity information:

NOTE 4 - INCOME TAXES

 

The Company follows ASC 740. Deferred income taxes reflect the net effect of (a) temporary difference between carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax reporting purposes, and (b) net operating loss carry-forwards. No net provision for refundable Federal income tax has been made in the accompanying statement of loss because no recoverable taxes were paid previously. Similarly, no deferred tax asset attributable to the net operating loss carry-forward has been recognized, as it is not deemed likely to be realized.

 

The provisions for refundable federal income tax at 34% for the years ended September 30, 2017 and 2016 consist of the following:

 

 

 

Year Ended

 

 

 

September 30,

 

 

 

2017

 

 

2016

 

Income tax expense (benefit) at statutory rate

 

 $ (7,474 )

 

 $ (15,714 )

Change in valuation allowance

 

 

 7,474

 

 

 

 15,714

 

Income tax expense

 

 $ -

 

 

 $ -

 

 

The tax effects of temporary differences that give rise to the Company’s net deferred tax assets as of September 30, 2017 and September 30, 2016 are as follows:
 

 

 

September 30,

 

 

September 30,

 

 

 

2017

 

 

2016

 

Net Operating Loss

 

 $ 56,986

 

 

 $ 49,512

 

Valuation allowance

 

 

 (56,986 )

 

 

 (49,512 )

Net deferred tax asset

 

 $ -

 

 

 $ -

 

   

The Company has approximately $167,606 of net operating losses (“NOL”) carried forward to offset taxable income in future years which expire commencing in fiscal 2032. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against all of the deferred tax assets relating to NOLs for every period because it is more likely than not that all of the deferred tax assets will not be realized.