Income Tax Provision

6 Months Ended

Dec. 31, 2019

Income Tax Provision

Note 7 - Income Tax Provision

Deferred Tax Assets

At December 31, 2019, the Company had net operating loss (“NOL”) carry–forwards for Federal income tax purposes of $40,516 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 $8,508 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 n/a as of December 31, 2019.

Components of deferred tax assets are as follows:

	For the Reporting Period Ended December 31, 2019
Net Deferred Tax Asset Non-Current:
Net Operating Loss Carry-Forward	$	40,516
Effective tax rate		21	%
Expected Income Tax Benefit from NOL Carry-Forward		8,508
Less: Valuation Allowance		(8,508	)
Deferred Tax Asset, Net of Valuation Allowance	$	-

Income Tax Provision in the Statement of Operations

A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes is as follows:

	For the Reporting Period Ended December 31, 2019
Federal statutory income tax rate		21.0	%
Increase (reduction) in income tax provision resulting from:
Net Operating Loss (NOL) carry-forward	(21.0%)
Effective income tax rate		0.0	%

Tax Returns Remaining subject to IRS Audits

The Company has filed its corporation income tax return for the reporting period ended June 30, 2019, which will remain subject to examination by the Internal Revenue Service under the statute of limitations for a period of three (3) years from the date it is filed.