PROVISION FOR INCOME TAXES

12 Months Ended

Jul. 31, 2019

Income Tax Disclosure [Abstract]

PROVISION FOR INCOME TAXES

NOTE 5 - PROVISION FOR INCOME TAXES

The Company provides for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the “Act”) resulting in significant modifications to existing law. The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the new statutory rate of 21% to the income tax amount recorded as of July 31, 2019 and July 31, 2018 are as follows:

	July 31, 2019			July 31, 2018
Net operating carryforward	$	(237,520	)	$	(207,203	)
Effective tax rate		21	%		21	%
Tax benefit of net operating loss carryforward		49,879			43,513
Valuation allowance		(49,879	)		(43,513	)
Deferred income tax assets	$	-		$	-

As of July 31, 2019, the Company had $237,520 in net operating losses (“NOLs”) that may be available to offset future taxable income, which begin to expire between 2034 and 2038. NOLs generated in tax years prior to July 31, 2018, can be carryforward for twenty years, whereas NOLs generated after July 31, 2018 can be carryforward indefinitely. In accordance with Section 382 of the U.S. Internal Revenue Code, the usage of the Company’s net operating loss carry forwards is subject to annual limitations following greater than 50% ownership changes. Tax returns for the years ended 2014 through 2019 are subject to review by the tax authorities.