Annual report pursuant to Section 13 and 15(d)

Income Tax

Income Tax

12 Months Ended

Dec. 31, 2014

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	)

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details