INCOME TAXES

6 Months Ended

Feb. 28, 2017

Notes to Financial Statements

NOTE 4 - INCOME TAXES

NOTE 4 – INCOME TAXES

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 ended August 31, 2016, 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 February 28, 2017 and August 31, 2016:

	Period ending
	February 28,			August 31,
	2017			2016
Deferred tax asset attributable to:
Net operating loss carry over	$	25,638		$	25,638
Net operating losses utilized at 35%		(19,447	)		-
Less: valuation allowance		(6,191	)		(25,638	)
Net deferred tax asset	$	-		$	-

The valuation allowance for deferred tax assets as of February 28, 2017 was $6,191, and $25,638 as of August 31, 2016. 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 February 28, 2017 and August 31, 2016. Management estimates the Company’s tax liability in Hong Kong to be immaterial.