v3.3.1.900
Income Taxes
 12 Months Ended
Sep. 30, 2015
Notes to Financial Statements  
Note 9 - Income Taxes

The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, "Income Taxes." Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. 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.

 

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.

 

Our effective tax rate for fiscal years 2015 and 2014 is 17%, which we expect to be fairly consistent in the near term. Our tax rate is also affected by discrete items that may occur in any given year, but are not consistent from year to year.

 

The components of income (loss) before income taxes were comprised of the following:

 

    Year ended
Sept. 30,
2015		     Year ended
Sept. 30,
2014		  
Tax jurisdictions from:            
– U.S.   $ (36,155 )   $ 6,533  
Income (loss) before income taxes   $ (36,155 )   $ 6,533  

 

Provision for income taxes (at 17%) consisted of the following:

 

    Year ended
Sept. 30,
2015		     Year ended
Sept. 30,
2014		  
Current:            
    $ 703       1,600  
Income tax expense   $ 703       1,600  

 

Paramount Supply Inc is registered in the State of Nevada and is subject to United States of America tax law. As of September 30, 2015, the operations in the United States of America incurred $31,925 of cumulative net operating losses.