Note 15 - Income Tax Income

6 Months Ended

Nov. 30, 2014

Notes

Note 15 - Income Tax Income

NOTE 15 – INCOME TAX INCOME

	Six months ended November 30, 2014	Six months ended November 30, 2013
Current income tax in PRC and Hong Kong	$-	$78,981
Deferred tax income	(7,388)	(7,388)
Total	$(7,388)	$71,593

On April 29, 2014, RTSH obtained a tax benefit which the income tax for 2013 and 2014 calendar year is exempt and the income tax for 2015, 2016 and 2017 calendar year will be subject to half rate deduction.

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

	Six months ended November 30, 2014	Six months ended November 30, 2013
(Loss)/income before provision for income taxes – continuing operations	$(100,898)	$849,045
Expected PRC income tax expense at statutory tax rate of 25%	$(25,225)	212,261
Different tax rate for PRC/Hong Kong local authority	5,561	7,344
Expenses not deductible for tax	9,351	10,529
Utilization of tax loss brought forward	(54,915)	(197,546)
Tax loss not provided for deferred tax	57,840	39,005
Total	$(7,388)	$71,593

 (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) Hong Kong subsidiaries are subject to Hong Kong profits tax. The provision for Hong Kong profits tax is based on a statutory rate of 16.5% of assessable profits in Hong Kong.

(iii) BVI subsidiaries are not subject to profits tax.