Annual report pursuant to Section 13 and 15(d)

Income Taxes

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Income Taxes
 12 Months Ended
Sep. 30, 2011
Income Taxes  
Income Tax Disclosure [Text Block]

NOTE 6 – INCOME TAXES

 

The Company provides for income taxes under ASC Topic 740 which requires the use of an asset and liability approach in accounting for income taxes. We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. Accounting for Uncertainty in Income Taxes when it is more likely than not that a tax asset cannot be realized through future income the Company must allow for this future tax benefit. 

 

We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carry forwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carry forward period.

 

The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate to the income tax amount recorded as of September 30, 2011 and September 30, 2010 are as follows:

 

 

September 30, 2011

September 30, 2010

 

 

 

Net operating loss carry forward

62,752

33,767

Effective Tax rate

35%

35%

Deferred Tax Assets

21,963

11,818

Less: Valuation Allowance

(21,963)

(11,818)

Net deferred tax asset

$       0

$       0

 

The net federal operating loss carry forward will expire between 2029 and 2030.  This carry forward may be limited upon the consummation of a business combination under IRC Section 381.