Annual report pursuant to Section 13 and 15(d)

Income Tax

Income Tax
12 Months Ended
Dec. 31, 2014
Notes to Financial Statements  
Note 7. Income Tax
a) Current income tax


The income tax expense is reconciled as below:


    2014     2013  
Net Loss   $ 651,474     $ 517,914  
Statutory tax rate     35 %     35 %
Income Tax at Statutory tax rate     228,016       181,270  
Non-deductible expenses     (278,368 )     (129,456 )
Change in valuation allowance     50,352       (51,814 )
Total tax expenses     -       -  


The Company accounts for income taxes under ASC 740. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Accounting standards require the consideration of a valuation allowance for deferred tax assets if it is "more likely than not" that some component or all of the benefits of deferred tax assets will not be realized.  


No provision for income taxes has been provided in these consolidated financial statements due to the net loss for the years ended December 31, 2014 and 2013. The net operating loss will expire at various times to December 31, 2032. The taxation years of 2012, 2013, and 2014 are open for review by the related state and federal regulatory authorities.


b) Deferred tax


    2014     2013  
Non-capital losses carried forward   $ 3,096,302     $ 2,723,196  
Statutory tax rate     35 %     35 %
Income Tax at Statutory tax rate     1,083,706       953,119  
Valuation allowance     (1,083,706 )     (953,119 )