Note 6: Deferred Income Taxes

12 Months Ended

Dec. 31, 2015

Notes

Note 6: Deferred Income Taxes

6. Deferred Income Taxes

Income tax benefits attributable to losses from operations in the United States of America was $Nil for the years ended December 31, 2015 and 2014, 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:

		2015			2014
Income  for the year before income taxes	$	92,650		$	54,290
Computed expected tax benefit	$	31,501		$	18,459
Non-deductible expenses		(60,242	)		(49,414	)
Change in valuation allowance		28,741			30,955
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, 2015 and 2014 are presented below:

		2015			2014
Deferred tax assets:
Net operating loss carry forwards - US	$	816,935		$	788,194
Valuation allowance		(816,935	)		(788,194	)
Net deferred tax asset	$	-		$	-

The valuation allowance for deferred tax assets as of December 31, 2015, and 2014, was $816,935 and $788,194, 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 $2,400,000 (2014 - $2,300,000) prior to the expiration of the net operating loss carry-forwards.