Income Tax Disclosure

12 Months Ended

Aug. 31, 2024

Notes

Income Tax Disclosure

NOTE 11. INCOME TAXES

The Company uses the assets and liability method of accounting for income taxes pursuant to SFAS No. 109 “Accounting for Income Taxes”. Under the assets and liability method of SFAS No. 109, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

In June 2006, the FASB issued FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes.” Specifically, the pronouncement prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken from year ended December 31, 2015 tax return onwards. The interpretation also provides guidance on the related derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition of uncertain tax positions. The Company adopted this interpretation effective on inception.

For the year ending August 31, 2024 and 2023, the Company had available for US federal income tax purposes net operating loss carryovers of $806,110 and $332,157, respectively, which do not expire.

The Company has provided a full valuation allowance against the full amount of the net operating loss benefit, since, in the opinion of management, based upon the earnings history of the Company, it is more likely than not that the benefits will not be realized.

	August 31, 2024		August 31, 2023
Statutory federal income tax rate		21.00%		21.00%
Statutory state income tax rate		0.00%		0.00%
Valuation allowance		(21.00%)		(21.00%)
Effective tax rate		0.00%		0.00%

Deferred income taxes result from temporary differences in the recognition of income and expenses for financial reporting purposes and for tax purposes. The tax effect of these temporary differences representing deferred tax assets result principally from the following:

Deferred Tax Assets (Gross Values)	August 31, 2024		August 31, 2023
Accrued expenses	$	14,930	$	-
Unrealized loss on derivative liability		121,474		17,044
Net operating loss carry forward		279,081		104,445
Less valuation allowance		(279,081)		(104,445)
Net deferred tax asset	$	136,404	$	17,044

Deferred Tax Liabilities (Gross Values)	August 31, 2024		August 31, 2023
Accrued expenses	$	-	$	(6,648)
Tax depreciation		(455)		(1,060)
Tax amortization		-		(292)
Net deferred tax liability	$	(455)	$	(8,000)

As of August 31, 2024, the Company has a net deferred tax asset of $126,905, compared to a net tax liability of $502 as of August 31, 2023. The Company has not filed its 2024 and 2023 tax return.