INCOME TAXES

12 Months Ended

Dec. 31, 2011

Income Tax Disclosure [Abstract]

NOTE 10 - INCOME TAXES

Potential benefits of income tax losses and other tax assets are not recognized in the accounts until realization is more likely than not. As of December 31, 2011, the Company has net operating losses carried forward of $1,022,465 (2010 - $1,142,613) for tax purposes in various jurisdictions subject to expiration as described below. Pursuant to ASC 740, Income Taxes , the Company is required to compute tax asset benefits for net operating losses carried forward and other items giving rise to deferred tax assets. Future tax benefits which may arise as a result of these losses and other items 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 items.

The actual income tax provisions differ from the expected amounts calculated by applying the combined income tax statutory rates applicable in each jurisdiction to the Company’s loss before income taxes and non-controlling interest. The components of these differences are as follows:

	2011			2010
Corporate income tax rate		34%			34%
Expected income tax (recovery)	$	(1,186,057	)	$	(388,488	)
Goodwill impairment		680,000
Non-deductible finance costs and other		552,177
Change in valuation allowance		(40,850	)		388,488
State income tax net of federal benefit		10,230
Income tax provision	$	15,500		$	-

The Company’s tax-effected deferred income tax assets and liabilities are estimated as follows:

	2011			2010
Net operating loss carryforward	$	347,638		$	388,488
Total deferred tax assets		347,638			388,488
Less: Valuation allowance		(347,638	)		(388,488	)
Net deferred tax assets recognized	$	-		$	-

The Company has approximately $1,022,465 in net operating losses carried forward for United States income tax purposes which will expire, if not utilized, in 2030.