INCOME TAXES

12 Months Ended

Sep. 30, 2015

Notes to Financial Statements

NOTE 12 - INCOME TAXES

The Company has losses carried forward for income tax purposes through September 30, 2015. There are no current or deferred tax expenses for the years ended September 30, 2015 and 2014 due to the Company's loss position. The Company has fully reserved for any benefits of these losses. The deferred tax consequences of temporary differences in reporting items for financial statement and income tax purposes are recognized, as appropriate. Realization of the future tax benefits related to the deferred tax assets is dependent on many factors, including the Company's ability to generate taxable income within the net operating loss carry-forward period. Management has considered these factors in reaching its conclusion as to the valuation allowance for financial reporting purposes.

The provision for refundable federal income tax consists of the following:

	2015			2014
Deferred income tax asset attributed to:
Current operations	$	68,718		$	106,927
Less: Change in valuation allowance		(68,718	)		(106,927	)
Net refundable amount	$	-		$	-

The composition of the Company's deferred tax assets as at September 30 are as follows:

	2015			2014
Income tax operating loss carryforward	$	2,435,770		$	2,233,657
Statutory federal income tax rate		34	%		34	%
Effective income rate		0	%		0	%
Deferred tax assets	$	828,162		$	759,443
Less: Valuation allowance		(828,162	)		(759,443	)
Net deferred income tax asset	$	-		$	-

The potential income tax benefit of these losses has been offset by a full valuation allowance.

As of September 30, 2015, the Company has an unused net operating loss carry-forward balance of $2,435,770 that is available to offset future taxable income. This unused net operating loss carry-forward balance expires between 2025 and 2034.

The issuance of 2,532,054 shares of common stock during the year ended September 30, 2014 affected a change in control of the Company. Due to the change in control, the tax loss carryforward may only be used on a formula basis under IRS section 382 which will affect the benefit the Company can gain from the tax loss.