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Income Taxes
 12 Months Ended
Jun. 30, 2016
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 4 INCOME TAXES

 

No provision has been made for income taxes in the financial statements because the Company has incurred net operating losses to be carried forward and is incorporated in the State of Nevada, which does not levy a Corporate Income Tax. The tax effects of temporary differences that give rise to significant portions of the deferred tax asset at June 30, 2016 are summarized below.

                 
    Deductible          
Deferred Tax Asset   Amount   Rate     Tax
Net Operating Loss Carryforward                
Federal   215,170   34 %     73,158
Temporary Differences                
Related Party Interest   62,671   34 %     21,308
Valuation Allowance               (94,466)
Deferred Tax Asset             $ —

 

A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. Because of the lack of taxable earnings history, the Company has established a valuation allowance for all future deductible temporary differences. The valuation allowance has increased $10,569, from $83,897, as of June 30, 2016.

 

The Company has operating loss carry forwards available at June 30, 2016 totaling $215,170 which will begin to expire in the year 2019.

 

The effective tax rate for continuing operations differs from the statutory tax rate as follows:

             
    Years ended June 30,  
    2016     2015  
Federal Statutory Income Tax Rate   34 %   34 %
Non-deductible Expenses   (16 %)   (16 %)
Valuation Allowance   (18 %)   (18 %)
Effective income tax rate   0 %   0 %

 

Uncertain Tax Positions

 

The Company has evaluated its uncertain tax positions and determined that any required adjustments would not have a material impact on the Company's balance sheet, income statement, or statement of cash flows.

 

A reconciliation of our unrecognized tax benefits for 2016 is presented in the table below:

     
Balance as of July 1, 2015 $ 0.00
Additions based on tax positions related to the current year   0.00
Reductions for tax positions of prior years   0.00
Reductions due to expiration of statute of limitations   0.00
Settlements with taxing authorities   0.00
Balance as of June 30, 2016 $ 0.00

 

All years prior to 2012 are closed by expiration of the statute of limitations. The tax year ended June 30, 2013, closed by expiration of the statute of limitations in August 2016. The years ended June 30, 2014, 2015 and 2016 are open for examination.