Note 10 Income Tax

6 Months Ended

Sep. 30, 2012

Note 10 Income Tax:

Note 10 Income Tax

NOTE 10 INCOME TAX

The Company and its subsidiaries are subject to income tax on an entity basis for income arising in or derived from the tax jurisdictions in which they operate.

The Company and HLL have not provided for income tax due to continuing loss.  Substantially all of the Company’s income before income tax expenses is generated by its operating subsidiaries, Legend Sun and Sino Wish, in Hong Kong.

A reconciliation of the expected income tax expense (based on HK income tax rate) to the actual income tax expense is as follows:

	Three Months Ended September 30, 2012	Six Months Ended September 30, 2012		Three Months Ended September 30, 2011	Six Months Ended September 30, 2011
	(Unaudited)	(Unaudited)		(Unaudited)	(Unaudited)
Net Income (Loss) Before Income Taxes	9,637	$	18,814	(17,069)	$	(40,361)
HK income tax rate	16.5%		16.5%	16.5%		16.50%
Expected income tax expenses/(credit) calculated at HK income tax rate	1,590		3,104	(2,816)		(6,660)
Corporate expenses not deductible for tax purposes	5,734		6,311	2,529		4,057
Tax exemption	(3,062)		(3,082)	-		-
Utilization of tax losses not recognized	(4,242)		(6,333)	464		892
Actual income tax expenses	-	$	-	177	$	1,289

The Company's income tax provision in respect of operations in Hong Kong is calculated at the applicable tax rates on the estimated assessable profits for the year based on existing legislation, interpretations and practices in respect thereof. The standard tax rate applicable to the Company was 16.5%. No deferred tax liability has been provided as the amount involved is immaterial.