- INCOME TAX PROVISION

12 Months Ended

Jul. 31, 2019

NOTE 7 - INCOME TAX PROVISION

Deferred Tax Assets

As of July 31, 2019, the Company had net operating loss (“NOL”) carry-forwards for Federal income tax purposes of $19,746 that may be offset against future taxable income through 2039. No tax benefit has been recorded with respect to these net operating loss carry-forwards in the accompanying consolidated financial statements as the management of the Company believes that the realization of the Company's net deferred tax assets of approximately $4,147 was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by the full valuation allowance.

Deferred tax assets consist primarily of the tax effect of NOL carry-forwards which was used to offset tax payable from prior year's operations. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realization. The current valuation of tax allowance is not applicable as of July 31, 2019.

Components of deferred tax assets are as follows:

	For the Reporting Period Ended July 31, 2019				For the Reporting Period Ended July 31, 2018

Net Deferred Tax Asset Non-Current:
Net Operating Loss Carry-Forward		$	19,746			$	1,445
Effective tax rate	x		21	%	x		21	%
Expected Income Tax Benefit from NOL Carry-Forward			4,147				303
Less: Valuation Allowance			(4,147)				(303	)
Deferred Tax Asset, Net of Valuation Allowance		$	-			$	-

The actual tax benefit at the expected rate of 21% differs from the expected tax benefit for the year ended July 31, 2019 as follows:

	For the Reporting Period Ended July 31, 2019		For the Reporting Period Ended July 31, 2018

Computed “expected” tax expense (benefit)	$	(3,843)	$	(303)
Change in valuation allowance	$	3,843	$	303
Actual tax expense (benefit)	$	-	$	-