Note 13 -Provision For Income Taxes/(income Tax Income)

9 Months Ended

Feb. 28, 2014

Notes

Note 13 -Provision For Income Taxes/(income Tax Income)

NOTE 13 –PROVISION FOR INCOME TAXES/(INCOME TAX INCOME)

Income tax for nine months ended February 28, 2014 and 2013 are summarized as follows:

	Nine months ended February 28,
	2014	2013
Current – PRC income tax	$236,985	$177,211
Deferred income tax income	(11,110)	(10,821)
Total	$225,875	$166,390

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

	Nine months ended February 28, 2014	Nine months ended February 28, 2013
Income before provision for income taxes	879,427	155,083
Expected PRC income tax expense at statutory tax rate of 25%	$219,857	$38,771
Different tax rate for PRC/Hong Kong local authority	15,233	(3,167)
Expenses not deductible for tax	4,616	28,738
Utilization of tax loss brought forward	(107,635)	-
Tax loss not provided for deferred tax	93,804	102,048
Total	$225,875	$166,390

(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.