v3.22.2.2
PROVISION FOR INCOME TAXES
 12 Months Ended
Aug. 31, 2022
PROVISION FOR INCOME TAXES  
NOTE 5 - PROVISION FOR INCOME TAXES

NOTE 5 – PROVISION FOR INCOME TAXES

 

The Company provides for income taxes under ASC 740,” Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

 

The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 21% to the net loss before provision for income taxes for the following reasons:

 

 

 

Year Ended

 

 

 

August 31,

 

 

August 31,

 

 

 

2022

 

 

2021

 

Income tax (benefit) at statutory rate                                     

 

$(2,814)

 

$(11,375)

Valuation allowance

 

 

2,814

 

 

 

11,375

 

Provision for income taxes

 

$-

 

 

$-

 

 

Net deferred tax assets consist of the following components as of:

 

 

 

August 31,

 

 

August 31,

 

 

 

2022

 

 

2021

 

Net Operating Losses Carryover                               

 

$29,425

 

 

$26,611

 

Valuation allowance

 

 

(29,425)

 

 

(26,611)

Net deferred tax asset

 

$-

 

 

$-

 

 

As of August 31, 2022, the Company had approximately $140,116 of net operating losses (“NOL”) carried forward to offset taxable income in future years which expire commencing in fiscal 2038. NOLs generated in tax years prior to August 31, 2018, can be carried forward for twenty (20) years and NOLs generated after August 31,2018 can be carried forward indefinitely. NOL carry forwards may be subject to an annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”). These ownership changes may limit the amount of the NOL carry forwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the outstanding stock of a company by certain stockholders.

 

Tax returns for the years ended 2018, 2019, 2020, 2021 and 2022 are subject to review by the tax authorities. The Company has no liabilities related to uncertain tax positions or unrecognized benefits as of the year ended August 31, 2022. The Company has not accrued for interest or penalties associated with unrecognized tax liabilities.