Income Taxes

12 Months Ended

Dec. 31, 2014

Notes

Income Taxes

NOTE 4 – Income Taxes

Deferred taxes are provided on an asset and liability approach whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

The components of deferred income tax assets at December 31, 2014 and 2013, were as follows:

2014:	Balance	Rate	Tax
Federal loss carryforward	$620,078	34%	$ 210,827
Valuation allowance			(210,827)
Deferred tax asset			$ 0

2013:	Balance	Rate	Tax
Federal loss carryforward	$531,415	34%	$ 180,681
Valuation allowance			(180,681)
Deferred tax asset			$ 0

A reconciliation between expected and actual tax liability is presented below.

	2014	2013
Expected Provision (Benefit)
	$ (30,145)	$ (16,894)
Effect of:    Increase in valuation allowance	30,145	16,894
Total Actual Provision	$0	$0

At December 31, 2014, the Company has unutilized tax losses of $620,078 (2013: $531,415). Deferred tax asset is not provided for as the tax losses may not be able to carry forward after a change in substantial ownership of the Company in February 2015