INCOME TAXES

12 Months Ended

Aug. 31, 2016

Notes to Financial Statements

Note 6. INCOME TAXES

As of August 31, 2016 the Company had net operating loss carry forwards of $73,251 that may be available to reduce future years' taxable income through 2035. Subsequent to the Company's change in control, the Company has a net operating loss carryforward of $36,679. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. Due to the change in control during the year, the Company is expecting limitations on the loss carry forward amounts. that were generated prior to the change in control.

Components of net deferred tax assets, including a valuation allowance, are as follows at August 31, 2016 and 2015:

	Years Ended
	August 31,
	2016			2015
Deferred tax asset attributable to:
Net operating loss carry over	$	25,638		$	11,333
Less: valuation allowance		(25,638	)		(11,333	)
Net deferred tax asset	$	-		$	-

The valuation allowance for deferred tax assets as of August 31, 2016 was $25,628, and $11,333 as of August 31, 2015. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not the deferred tax assets would not be realized as of August 31, 2016 and 2015.

Reconciliation between the statutory rate and the effective tax rate is as follows at August 31, 2016 and 2015:

	2016				2015
Federal statutory tax rate		(35.0	)	%		(35.0	)	%
Change in valuation allowance		35.0		%		35.0		%
Effective tax rate		-		%		-		%