v3.25.1
Income Tax Provision
 6 Months Ended
Mar. 31, 2025
Income Tax Provision  
Income Tax Provision

Note 7 – Income Tax Provision

 

 

 

Three Months Ended

 

 

 

March 31,

2025

 

 

March

31,

2024

 

 

 

 

 

 

 

 

Net profit (loss) before income tax

 

$(3,373)

 

$(3,520)

Tax Expense (benefit) at the statutory tax rate

 

 

(708)

 

 

(739)

Tax effect of

 

 

 

 

 

 

 

 

Valuation allowance

 

 

708

 

 

 

739

 

Net operating loss tax assets deduction

 

 

 

 

 

 

-

 

Income tax expense (benefit)

 

$-

 

 

$-

 

 

Deferred Tax Assets

 

At March 31, 2025, the Company had net operating loss (“NOL”) carry–forwards for Federal income tax purposes of $72,922 that may be offset against future taxable income through 2040.  No tax benefit has been recorded with respect to these net operating loss carry-forwards in the accompanying consolidated financial statements as the management of the Company believes that the realization of the Company’s net deferred tax assets of approximately $15,314 was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by the full valuation allowance.

 

Deferred tax assets consist primarily of the tax effect of NOL carry-forwards which was used to offset tax payable from prior year’s operations.  The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realization.

 

Components of deferred tax assets are as follows:

 

 

 

March 31,

2025

 

 

 September 30,

2024

 

 

 

 

 

 

 

 

Net Deferred Tax Asset Non-Current:

 

 

 

 

 

 

Net Operating Loss Carry-Forward

 

$72,922

 

 

 

65,567

 

Effective tax rate

 

 

21.0%

 

 

21.0%

Expected Income Tax Benefit from NOL Carry-Forward

 

 

15,314

 

 

 

13,769

 

Less: Valuation Allowance

 

 

(15,314)

 

 

(13,769)

Deferred Tax Asset, Net of Valuation Allowance

 

$-

 

 

 

-

 

 

Income Tax Provision in the Statement of Operations

 

A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes is as follows:

 

 

 

March 31,

2025

 

 

 September 30,

2024

 

 

 

 

 

 

 

 

Federal statutory income tax rate

 

 

21.0%

 

 

21.0%

Increase (reduction) in income tax provision resulting from:

 

 

 

 

 

 

 

 

Net Operating Loss (NOL) carry-forward

 

(21.0

%)

 

(21.0

%)

Effective income tax rate

 

 

0.0%

 

 

0.0%

 

Tax Returns Remaining subject to IRS Audits

 

The Company has filed its corporation income tax return for the reporting period ended September 30, 2024, which will remain subject to examination by the Internal Revenue Service under the statute of limitations for a period of three (3) years from the date it is filed.