6. Deferred Income Taxes

12 Months Ended

Dec. 31, 2012

Notes

6. Deferred Income Taxes

6. Deferred Income Taxes

Income tax benefits attributable to losses from United States of America operations was $Nil for the years ended December 31, 2012 and 2011, and differed from the amounts computed by applying the United States of America federal income tax rate of 34 percent to pretax losses from operations as a result of the following:

		2012			2011
Loss for the year before income taxes	$	(325,696	)	$	(311,449	)
Computed "expected" tax benefit	$	(110,829	)	$	(105,893	)
Deductible expenses		6,858			(11,990)
Change in valuation allowance		103,971			117,883
Income tax expense	$	-		$	-

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2012 and 2011are presented below:

		2012			2011
Deferred tax assets:
Net operating loss carry forwards - US	$	716,938		$	612,967
Valuation allowance		(716,938	)		(612,967	)
Net deferred tax asset	$	-		$	-

The valuation allowance for deferred tax assets as of December 31, 2012 and 2011 was $716,938 and $612,967, respectively. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred 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 tax liabilities, projected future taxable income, and tax planning strategies in assessing the realizability of deferred tax assets. In order to fully realize the deferred tax asset attributable to net operating loss carryforwards, the Company will need to generate future taxable income of approximately $2,100,000 prior to the expiration of the net operating loss carry-forwards.