The income tax benefit has been computed by applying the weighted average income tax rates of the United States (federal and state rates) of 21% to the net loss before income taxes calculated for each jurisdiction for the years ended August 31, 2020 and 2019, respectively. The tax effect of the significant temporary differences, which comprise future tax assets and liabilities, are as follows:

	August 31, 2020			August 31, 2019
Deferred tax asset attributed to:
Net operating loss carryforward	$	23,528		$	12,702
Statutory tax rate		21	%		21	%

Income tax recovery at statutory rate		4,941			5,174
Less: valuation allowance		(4,941	)		(5,174	)
Provision for income taxes	$	-		$	-

As of August 31, 2020, the Company had net operating loss carry forwards of approximately $48,167 that may be available to reduce future years’ taxable income in varying amounts through 2040. 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 carryforwards.

The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance as of August 31, 2020.

The cumulative tax effect at the expected rate of 21% for 2020 and 2019 of significant items comprising the net deferred tax amount is:

	August 31, 2020			August 31, 2019
Deferred tax asset attributed to:
Net operating loss carryforward	$	48,167		$	24,639
Statutory tax rate		21	%		21	%

Net deferred tax asset		10,115			5,174
Less: valuation allowance		(10,115	)		(5,174	)
Net deferred tax assets	$	-		$	-

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 2017 through 2020 are subject to review by the tax authorities.

The sources and tax effects of the differences are as follows

	August 31, 2020			August 31, 2019
U.S. federal statutory rate		21	%		21	%
Valuation allowance	(21		%)	(21		%)
Effective rate		0	%		0	%