INCOME TAXES

9 Months Ended

Mar. 31, 2012

INCOME TAXES

10. INCOME TAXES

The Company’s deferred tax assets are comprised of the allowance for doubtful accounts and the net operating loss carryforward. The net operating loss carryforward may be available to reduce future years’ taxable income through year 2031. Management believes that the realization of the benefits from these losses appears uncertain and has provided a valuation allowance to reduce the deferred tax asset. The income tax benefit (provision) for the nine and three months ended March 31, 2012 and 2011 are as follows:

	For the nine months ended  March 31,						For the three months ended  March 31,
	2012			2011			2012			2011
	US$			US$			US$			US$
Current
USA		(29,768	)		(27,588	)		(2,889	)		(400	)
China		-			-			-			-
		(29,768	)		(27,588	)		(2,889	)		(400	)
Deferred
Allowance for doubtful accounts		58,000			-			10,000			-
Net operating loss carryforward		431,000			35,000			236,000			35,000
Valuation allowance		(428,000	)		(2,000	)		(236,000	)		-
Net deferred		61,000			33,000			10,000			35,000
Total		31,232			5,412			7,111			34,600