Income Taxes

12 Months Ended

Apr. 30, 2016

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 7. INCOME TAXES

The Company follows FASB ASC 740, “Accounting for Income Taxes.” Deferred income taxes reflect the net effect of (a) temporary difference between carrying amounts of assets and liabilities for financial purposes and amounts used for income tax reporting purposes, and (b) net operating loss carry forwards. No net provision for refundable Federal income tax has been made in the accompanying statement of loss because no refundable taxes were paid previously. Similarly, no deferred tax asset attributable to the net operating loss carry forward has been recognized, as based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

At April 30, 2016, the Company had unused net operating loss carryovers of approximately $3,089,331 (2015: $2,476,581). These losses are available to offset taxable income and will expire between 2027 and 2034. The Company has not filed tax returns in the US since 2011 and has filed no Federal or Provincial returns in Canada to date. The Company is in the process of filing overdue tax returns which may have an impact on the amount of net operating loss carry overs which might be available to the Company.

ASC 740 requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The provision for income taxes differs from the amounts which would be provided by applying the statutory United States federal corporate income tax rate of 39% (2015 – 39%) to the net loss before provision for income taxes for the following reasons:

		April 30, 2016			April 30, 2015
Income tax benefit at statutory rate	$	238,972		$	44,845
Valuation analysis		(238,972	)		(44,845	)
Income tax benefit per books	$	—		$	—

Net deferred tax assets consist of the following components as of:

		April 30, 2016			April 30, 2015
NOL carryover	$	1,193,290		$	954,318
Valuation allowance		(1,193,290	)		(954,318	)
Net deferred tax asset	$	—		$	—