8. INCOME TAXES |
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Apr. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
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| 8. INCOME TAXES | 8.INCOME TAXES
The Company adopted the provisions of uncertain tax positions as addressed in ASC 740 “Income Taxes” (“ASC 740”). As a result of the implementation of ASC 740, the Company recognized no increase in the liability for unrecognized tax benefits. As of April 30, 2025, the Company had net operating loss carry forwards of approximately $80,710 that may be available to reduce future years’ taxable income in varying amounts indefinitely. Future tax benefits which may arise because of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.
The income tax valuation allowance as of April 30, 2025, was approximately $16,949. The net change in income tax valuation allowance from January 31, 2025, through April 30, 2025, was $3,127. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred income tax assets will not be realized.
The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance as of April 30, 2025. All tax years since inception remain open for examination by taxing authorities.
The provision for Federal income tax consists of the following:
The actual tax benefit at the expected rate of 21% does not differ from the expected tax benefit for the three months ended April 30, 2025, as follows:
The related deferred tax benefits for the above unused tax losses have not been fully recognized as it is not reasonably certain that they will be realized. Management has evaluated tax positions in accordance with ASC 740 and has not identified any significant tax positions, other than those disclosed. |