XML 61 R16.htm IDEA: XBRL DOCUMENT

Income Tax

9 Months Ended

Sep. 30, 2013

11. INCOME TAX

Guangzhou Tanke, is a P.R.C “domestic enterprise” that is registered and operated in Guangzhou, the PRC. The provision for income tax expense for the three and nine months ended September 30, 2013 and 2012 consists of the following components:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013			2012
Current provision
PRC	$	(26,730	)	$	222,513	$	59,437		$	652,711
Deferred provision
PRC		(177	)		-		(733	)		-
	$	(26,907	)	$	222,513	$	58,704		$	652,711

As of September 30, 2013 and December 31, 2012, the income tax payable for the Company amounted to $1,944,216 and $1,842,139, respectively. All of the Company’s net operating loss carry forward was fully reserved.

Significant components of the Company’s deferred tax asset are as follows.

	September 30,			December 31,
	2013			2012

Allowance for doubtful accounts in China	$	63,036		$	61,373
Net operating loss carryforward		3,131,483			2,995,201
Share based payment		1,122,287			1,047,130
Valuation allowance		(4,289,031	)		(4,076,661	)
Net deferred tax asset	$	27,775		$	27,042

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References+ Details