INCOME TAXES
As of March 31, 2017 the Company had net operating loss carry forwards of $21,276 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 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 March 31, 2017 and 2016 consist of the following:
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| Year Ended March 31,2017 | Year Ended March 31, 2016 |
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| Income tax expense (benefit) at statutory rate | (6,500) | (733) |
| Change in valuation allowance | 6,500 | 733 |
| Income tax expense | - | - |
The tax effects of temporary differences that give rise to the Company’s net deferred tax assets as of March 31, 2017 and March 31, 2016 are as follows:
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| Year Ended March 31,2017 | Year Ended March 31,2016 |
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| Net Operating Loss | $ 7,233 | $ 733 |
| Valuation allowance | (7,233) | (733) |
| Net deferred tax asset | $ - | $ - |
The Company has approximately $21,276 of net operating losses (“NOL”) carried forward to offset taxable income in future years which expire commencing in fiscal 2033. 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.