5. INCOME TAXES

The Company follows ASC 740. Deferred income taxes reflect the net effect of (a) temporary difference between carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax reporting purposes, and (b) net operating loss carry-forwards. No net provision for refundable Federal income tax has been made in the accompanying statement of loss because no recoverable taxes were paid previously.

The provision for federal income tax consists of the following for the years ending:

	January 31, 2013		January 31, 2012
Federal income tax (benefit):
Current		(21,661)		(5,164)
Valuation allowance		21,661		5,164
Net benefit		-		-

A reconciliation of the expected tax computed at the U.S. statutory federal income tax rate to the total benefit for income taxes at January 31, 2013 and 2012 follows:

	January 31, 2013		January 31, 2012

Expected tax at 34%		(21,661)		(5,164)
Change in valuation allowance		21,661		5,164
Income tax provision		-		-

Significant components of our net deferred tax asset or liability at January 31, 2013 and 2012 are as follows:

	2013		2012
Net operating loss	$	26,920	$	5,259

Total gross deferred tax assets		26,920		5,259
Valuation allowance		(26,920)		(5,259)

Net deferred tax assets	$	0	$	0

At January 31, 2013 and 2012, the Company had an unused net operating loss carry-forwards approximating $79,175 and $15,467, respectively, which are available to offset future taxable income. The loss carry-forwards will start to expire in 2031.

In assessing the realizability of the deferred tax assets at January 31, 2013 and 2012 of $26,920 and $5,259, respectively, management considered whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, the projected future taxable income and tax planning strategies in making this assessment. Based on management’s analysis, the Company concluded not to retain a deferred tax asset since it is uncertain whether the Company can utilize this asset in future periods. Therefore, the Company has established a full reserve against this asset. The valuation allowance was $26,920 and $5,259 as of January 31, 2013 and 2012, respectively.

The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. As of January 31, 2013 and 2012, the Company has no accrued interest and penalties related to uncertain tax positions.

The Company is subject to taxation in the U.S. The tax years for 2010 and forward are subject to examination by tax authorities. The Company is not currently under examination by any tax authority.

Management has evaluated tax positions in accordance with FASB ASC 740, and has not identified any tax positions, other than those discussed above, that require disclosure.