TAXATION

9 Months Ended

Sep. 30, 2012

TAXATION [Text Block]

7.	TAXATION
	The Company and its consolidated entities each files tax returns separately.
	a)	Income tax expenses (benefits)
		The reconciliation of income taxes from continuing operation computed at the statutory tax rates applicable to the PRC and Hong Kong, to income tax benefits is as follows:

		Nine months ended						Three months ended
		September 30,						September 30,
		2012			2011			2012			2011
Income (loss) before income tax	$	(18,315,946	)	$	333,320		$	(3,595,274	)	$	(1,113,306	)
Tax at statutory rate		(4,507,815	)		171,299			(879,166	)		(261,397	)
Gain on the business combination		-			(1,779,125	)		-			-
Change in valuation allowance		2,788,617			170,742			929,925			32,841
Non-deductible expenses		-			89,960			-			48,891
Income tax expense (benefit)	$	(1,719,198	)	$	(1,347,124	)	$	50,759		$	(179,665	)

The charges for income tax expenses are based on the results for the periods as adjusted for items which are non-assessable or disallowed. They are calculated using tax rates that have been enacted or granted at the balance sheet dates.