Deferred Tax Assets and Income Tax Provision

12 Months Ended

Feb. 28, 2015

Deferred Tax Assets and Income Tax Provision [Text Block]

Note 8 – Deferred Tax Assets and Income Tax Provision

Deferred Tax Assets

At February 28, 2015, the Company had net operating loss (“NOL”) carry–forwards for Federal income tax purposes of $197,114 that may be offset against future taxable income through 2034. No tax benefit has been reported with respect to these net operating loss carry-forwards in the accompanying financial statements because the Company believes that the realization of the Company’s net deferred tax assets of approximately $67,019 was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by a full valuation allowance.

Deferred tax assets consist primarily of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realization. The valuation allowance increased by approximately $11,726 and $13,426 for the fiscal year ended February 28, 2015 and 2014, respectively.

Components of deferred tax assets are as follows:

		February 28,			February
		2015			28, 2014
Net deferred tax assets – Non-current:
Expected income tax benefit from NOL carry-forwards		67,019			55,293
Less: Valuation allowance		(67,019	)		(55,293	)
Deferred tax assets, net of valuation allowance	$	-		$	-

Income Tax Provision in the Consolidated Statements of Operations

A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes is as follows:

	For the Fiscal		For the Fiscal
	Year Ended		Year Ended
	February 28,		February 28,
	2015		2014
Federal statutory income tax rate	34.0%		34.0%
Change in valuation allowance on net operating loss carry-forwards	(34.0	)	(34.0	)
Effective income tax rate	0.0%		0.0%

Tax Returns Remaining subject to IRS Audits

The Company has not yet filed its corporation income tax return for any of the reporting periods since its inception. The Company's corporation income tax returns for any of the reporting periods since its inception will remain subject to audit under the statute of limitations by the Internal Revenue Service for a period of three (3) years from the date they are filed.