INCOME TAX EXPENSE

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 19 - INCOME TAX EXPENSE

Prior to January 1, 2008, PRC enterprise income tax (EIT), was generally assessed at the rate of 33% of taxable income. In March 2007, a new enterprise income tax law (the “New EIT Law”) in the PRC was enacted which was effective on January 1, 2008. The New EIT Law generally applies a uniform 25% EIT rate to both foreign invested enterprises and domestic enterprises.

Dividends paid by PRC subsidiaries of the Company out of the profits earned after December 31, 2007 to non-PRC tax resident investors would be subject to PRC withholding tax. The withholding tax is 10%, unless a foreign investor’s tax jurisdiction has a tax treaty with China that provides for a lower withholding tax rate.

Loss before income taxes consists of:

	For the years ended December 31,
	2012			2011
Non-PRC	$	(843,432	)	$	(1,020,484	)
PRC	$	(437,933	)	$	(1,080,718	)
	$	(1,281,365	)	$	(2,101,202	)

There was no deferred tax expense for the years ended December 31, 2012 and 2011. The income tax expenses amounted $1,765 and $2,054 for the years ended December 31, 2012 and 2011, respectively. The PRC income tax returns for fiscal year 2008 through fiscal year 2012 remain open for examination.

The components of deferred taxes are as follows at December 31, 2012 and 2011:

	December 31, 2012			December 31, 2011
Deferred tax assets, current portion
Amortization of fair value of stock for services	$	97,307		$	131,934
Total deferred tax assets, current portion	$	97,307		$	131,934
Valuation allowance	$	(97,307	)	$	(131,934	)
Deferred tax assets, current portion, net	$	—		$	—
Deferred tax assets, non-current portion
Fixed assets	$	8,569		$	14,473
Net operating losses	$	630,087		$	553,475
Total deferred tax assets, non-current portion	$	638,656		$	567,948
Valuation allowance	$	(638,656	)	$	(567,948	)
Deferred tax assets, non-current portion, net	$	—		$	—

As of December 31, 2012, the Company had an accumulated deficit of $1,800,251 that can be carried forward to offset future net profit for income tax purposes. The net operating loss carry forwards as of December 31, 2012 will expire in years 2013 to 2033 if not utilized.

CCG and CCG California are both subject to United States of America tax law. As of December 31, 2012, the operations in the United States of America incurred $1,800,251 of cumulative net operating losses which can be carried forward to offset future taxable income. The Company has provided full valuation allowance for the deferred tax assets on the expected future tax benefits from the net operating loss carry forwards as the management believes it is more likely than not that these assets will not be realized in the future.

There is no need for the Company to accrue interest or penalty associated with the uncertain tax positions, and, accordingly, no such accruals have been made in the Company’s account.

The PRC tax law provides a (3-5 years) statute of limitation and the Company’s income tax returns are subject to examination by tax authorities during that period. All penalties and interest are expensed as incurred. For the years ended December 31, 2012 and 2011, there were no penalties and interest.

The following is a reconciliation of the provision for income taxes at the PRC and US tax rate to the income taxes reflected in the Statement of Income:

	December 31, 2012			December 31, 2011
Tax expense at statutory rate - US		35	%		35	%
Changes in valuation allowance - US		(35	)%		(35	)%
Foreign income tax rate - PRC		25	%		25	%
Changes in valuation allowance - PRC		(25	)%		(25	)%
Effective income tax rates		—	%		—	%