INCOME TAXES

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

NOTE 11 - 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, 2018, the Company has operating loss carry forwards of approximately $10,784,971 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 calculated tax deferred benefit at December 31, 2017 and 2018 is based on the current Federal statutory income tax rate of 35% applied to the loss before provision for income taxes.

The following table accounts for the differences between the actual income tax benefit and amounts computed for the years ended December 31, 2018 and 2017:                

	Years Ended December 31,
	2018			2017
Tax benefit at the federal statutory rate	$	8,783,341			8,326,924
Non deductible costs		(8,326,924	)		(7,967,019	)
Increase in valuation allowance		(456,417	)		(359,905	)
Income tax expense	$	-		$	-

The components of the deferred tax asset and deferred tax liability at December 31, 2018 and 2017 are as follows:

	December 31,
	2018			2017
Deferred tax assets	$	1,585,300			1,318,790
Valuation allowance		(1,585,300	)		(1,318,790	)
	$	-			-

A valuation allowance has been provided to reduce the net deferred tax asset, as management determined that it is more likely than not that the deferred tax assets will not be realized.

At December 31, 2018, the Company has approximately a net operating loss carry forward for United States income tax purposes approximating $10,156,953. These losses expire in varying amounts between December 31, 2023 and December 31, 2038