Note 12 - (income Tax Income)/provision For Income Taxes

6 Months Ended

Nov. 30, 2013

Notes

Note 12 - (income Tax Income)/provision For Income Taxes

NOTE 12 – (INCOME TAX INCOME)/PROVISION FOR INCOME TAXES

Income tax for six months ended November 30, 2013 and 2012 are summarized as follows:

	Six months ended November 30,
	2013	2012
Current – PRC income tax	$78,981	$96,129
Deferred income tax income	(7,388)	(7,204)
Total	$71,593	$88,925

A reconciliation of the expected tax with the actual tax expense is as follows:

	Six months ended November 30, 2013	Six months ended November 30, 2012
Income before provision for income taxes	695,819	11,714
Expected PRC income tax expense at statutory tax rate of 25%	$173,955	$2,929
Different tax rate for PRC/Hong Kong local authority	7,344	5,682
Expenses not deductible for tax	10,529	1,317
Utilization of tax loss brought forward	(159,240)	-
Tax loss not provided for deferred tax	39,005	78,997
Total	$71,593	$88,925

(i)           All PRC subsidiaries are subject to PRC tax. The provision for PRC income tax is based on a statutory rate of 25% of the assessable income of the PRC subsidiaries as determined in accordance with the relevant income tax rules and regulations of the PRC.

(ii)          All Hong Kong subsidiaries did not generate any assessable profits in Hong Kong and therefore are not subject to Hong Kong tax.