v3.25.1
INCOME TAXES
 9 Months Ended
May 31, 2024
INCOME TAXES  
INCOME TAXES

21. INCOME TAXES 

 

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The U.S. Federal income tax rate is 21%.

The provision for Federal income tax consists of the following three months and nine months ended May 31, 2024 and May 31, 2023, respectively:

 

 

 

For the three months ended

 

 

For the nine months ended

 

 

 

May 31,

 

 

May 31,

 

 

May 31,

 

 

May 31,

 

Federal income taxes attributable to:

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Current operations

 

$556,601

 

 

$52,353

 

 

$1,227,504

 

 

$784,517

 

Less:  valuation allowance

 

 

(556,601)

 

 

(52,353)

 

 

(1,227,504)

 

 

(784,517)

Net provision for federal income taxes

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

 

 

For the three months ended

 

 

For the six months ended

 

 

 

May 31,

 

 

May 31,

 

 

May 31,

 

 

May 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. statutory federal income tax rate

 

 

21.0%

 

 

21.0%

 

 

21.0%

 

 

21.0%

State income tax rate net of federal

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Income tax expense (benefit) for the period

 

 

21.0%

 

 

21.0%

 

 

21.0%

 

 

21.0%

 

 

 

May 31,

 

 

August 31,

 

 

 

2024

 

 

2023

 

Net operating loss carryover

 

$3,796,009

 

 

$2,568,505

 

Less:  valuation allowance

 

$(3,796,009)

 

 

(2,568,505)

Net deferred income taxes

 

$-

 

 

$-

 

 

The Company files income tax returns for federal purposes and in many states. The Company’s tax filings remain subject to examination by applicable tax authorities for certain length of time, generally three to four years, following the tax year to which these filings related. The statute of limitations for adjustment of the net operating losses utilized on these tax returns remains open an additional three to four years, depending on jurisdiction, from the date these returns were filed. As of May 31, 2024, the tax returns for year ended August 31, 2023 have not been filed.