Provision for Income Taxes

12 Months Ended

Jun. 30, 2015

Provision for Income Taxes [Abstract]

PROVISION FOR INCOME TAXES

NOTE 11 – PROVISION FOR INCOME TAXES

Deferred income taxes are determined using the liability method for the temporary differences between the financial reporting basis and income tax basis of the Company’s assets and liabilities. Deferred income taxes are measured based on the tax rates expected to be in effect when the temporary differences are included in the Company’s tax return. Deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. 

Operating loss carry-forwards generated during the period from June 1, 2010 (date of inception) through June 30, 2015 of approximately $1,082,865, will begin to expire in 2030.   The Company applies a statutory income tax rate of 35%.

Accordingly, deferred tax assets related to net operating loss carry-forwards total approximately $379,000 at June 30, 2015. For the fiscal year ended June 30, 2015 and 2014, the valuation allowance increased by approximately $73,200 and $162,100, respectively. 

The Company has no tax positions at June 30, 2015, or June 30, 2014, for which the ultimate deductibility is highly uncertain but for which there is uncertainty about the timing of such deductibility.   The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company had no accruals for interest and penalties since inception. 

The tax returns for the years from July 1, 2010 to June 30, 2015 are subject to examination by the Internal Revenue Service.