INCOME TAXES

12 Months Ended

Aug. 31, 2021

INCOME TAXES

NOTE 12 - INCOME TAXES

NOTE 12 – INCOME TAXES

The Company’s policy is to provide for deferred income taxes based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates that will be in effect when the differences are expected to reverse. The U.S. Tax Cuts and Jobs Act (TCJA) legislation reduces the U.S. federal corporate income tax rate from 35.0% to 21.0% and is effective June 22, 2018 for the Company. We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. When it is more likely than not that a tax asset cannot be realized through future income the Company must allow for this future tax benefit. We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carryforwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carryforward period.

The Company is not aware of any uncertain tax position that, if challenged, would have a material effect on the financial statements for the year ended August 31, 2021 or during the prior three years applicable under FASB ASC 740. We did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of accumulated deficit on the consolidated balance sheet. All tax returns for the Company remain open for examination.

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences for the periods presented are as follows:

	2021			2020
Income tax provision at the federal statutory rate		21	%		21	%
Effect on operating losses	(21		%)	(21		%)

The net deferred tax assets consist of the following:

	August 31, 2021			August 31, 2020
Deferred tax asset	$	615,839		$	807,225
Valuation allowance		(615,839	)		(807,225	)
Net deferred tax asset	$	-		$	-

The change in the valuation allowance for the year ended August 31, 2021 was an increase of $191,836.