Income Tax

9 Months Ended

May 31, 2015

Income Tax Disclosure [Abstract]

Income Tax

NOTE 9 – INCOME TAX

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differenced 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 bases. 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.

Net deferred tax assets consist of the following components as of August 31, 2014 and 2013:

	August 31, 2014			August 31, 2013
Deferred Tax Assets – Non-current:
NOL Carryover	$	(360,958	)	$	(280,897	)
					—
Less valuation allowance		360,958			280,897
Deferred tax assets, net of valuation allowance	$	—		$	—

The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from containing operations for the period ending August 31, 2014 and 2013 due to the following:

	2014			2013
Book Income		(2,871,673	)	$	(33,322,711	)
Meals and Entertainment		—			—
Stock for Services		2,465,118			32,563,529
Accrued Payroll		190,173			—
Valuation allowance		216,382			759,182
	$	—		$	—

At August 31, 2014, the Company had net operating loss carry forwards of approximately $975,500 that may be offset against future taxable income from the year 2014 to 2034. No tax benefit has been reported in the August 31, 2014 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount.

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards for Federal Income tax reporting purposes are subject to annual limitations. Should change in ownership occur, net operating loss carry forwards may be limited as to use in future years.