Annual report pursuant to Section 13 and 15(d)

Income Taxes

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Income Taxes
 12 Months Ended
Aug. 31, 2012
Income Taxes  
Income Taxes

5.     Income Taxes

 

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has incurred a net operating loss of $50,567 which starts to expire in 2031. The Company has adopted ASC 740, “Accounting for Income Taxes”, as of its inception. Pursuant to ASC 740, the Company is required to compute tax asset benefits for non-capital losses carried forward. The potential benefit of the net operating loss has not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the loss carried forward in future years.

 

The income tax benefit differs from the amount computed by applying the federal income tax rate of 34% to net loss before income taxes for the period ended August 31 as a result of the following:

 

 

2011

$

2012

$

 

 

 

Income tax benefit computed at statutory rates

156

17,193

Valuation allowance

(156)

(17,193)

 

 

 

Provision for income taxes

–

–