Note 12 - Income Taxes

6 Months Ended

Jun. 30, 2012

Note 12 - Income Taxes:

Note 12 - Income Taxes

Note 12 – Income Taxes

The Company's effective tax rate for the six months ended June 30, 2012 and 2011 was 23.36% and 18.64%, respectively.  The provisions for income taxes for the periods ended June 30, 2012 and 2011 are summarized as follows:

		Period ended June 30,
Hong Kong only:		2012		2011
Current	$	80,827	$	217,766
Deferred		-		-
Provision for income taxes	$	80,827	$	217,766

A reconciliation between the income tax computed at the U.S. statutory rate and the Company’s provision for income tax is as follows:

	Period ended June 30,
	2012	2011
U.S. statutory rate	34.00%	34.00%
Foreign income not recognized in the U.S.	-34.00%	-34.00%
Miscellaneous permanent differences	6.86%	2.14%
Hong Kong income tax rate	16.50%	16.50%
Provision for income tax	23.36%	18.64%

There were no significant permanent or temporary differences.

Accounting for Uncertainty in Income Taxes

The Company adopted the provisions of Accounting for Uncertainty in Income Taxes on January 1, 2007.  The provisions clarify the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with the standard “Accounting for Income Taxes,” and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  The provisions of Accounting for Uncertainty in Income Taxes also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

Based on the Company’s evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements.

The Company may from time to time be assessed interest or penalties by major tax jurisdictions.  In the event it receives an assessment for interest and/or penalties, it will be classified in the financial statements as tax expense.