Note 11 – Income taxes

The domestic statutory income tax rate was approximately 17.0% in the period as of and for the six months ended December 31, 2014, as of and for the years ended June 30, 2014. The reconciliation of the income tax expense from continuing operations expected based on domestic statutory income tax rates to the expense for income taxes included in the statements of operations is as follows:

	December 31,		June 30,
	2014		2014
	(Unaudited)		(Audited)
Income (loss) before income tax	$	(1,510,015)	$	1,498,485

Expenses not deductible for tax purposes		875,353		307,761
Tax exemption and allowances		(249,500)		(247,846)
Tax flow income/loss		-		-
Taxable income		-		1,558,400
Tax of 17% (estimated Singapore Statutory Rate)	$	-	$	264,928
Tax rebate on net tax payable		-		(23,809)
Permanent difference		-		99,094
Tax liability per tax year	$	-	$	340,213
Under payment		-		1,618
Under provision		-		18,467
Total income tax liability	$	-	$	360,298

Tax liability per tax year	$	-	$	340,213
Under provision		-		18,467
Changes in deferred tax liability		-		12,323
Income tax expense	$	-	$	371,003

The components of net deferred tax liabilities are as follows:

	December 31, 2014		June 30, 2014
	(Unaudited)		(Audited)
Deferred tax liabilities	$	114,861	$	114,861

Under current accounting standards, we must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. We measure the tax benefits recognized in the financial statements from such a position based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, we are required to make many subjective assumptions and judgments regarding our income tax exposures. Interpretations of and guidance surrounding income tax law and regulations change over time and may result in changes to our subjective assumptions and judgments which can materially affect amounts recognized in our balance sheets and statements of income. Our assessment of tax positions as of December 31, 2014 and June 30, 2014, determined that there were no material uncertain tax positions.