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Income Taxes
 12 Months Ended
Jul. 31, 2013
Income Taxes  
Note 5 - INCOME TAXES

Deferred income taxes are determined using the liability method for the temporary differences between the financial reporting basis and income tax basis of the Company’s assets and liabilities. Deferred income taxes are measured based on the tax rates expected to be in effect when the temporary differences are included in the Company’s tax return. Deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases.

 

The income tax provision differs from the amount of income tax determined by applying the U.S. federal and state income tax rates of 39% to pretax income from continuing operations for the periods ended July 31, 2013 and 2012 due to the following:

 

    2013     2012  
             
Net operating loss carry-forwards   $ 261,783     $ 164,333  
Valuation allowance     (261,783 )     (164,333 )
Net deferred tax asset   $ -     $ -  

 

At July 31, 2013, the Company had net operating loss forwards of approximately $671,238 that may be offset against future taxable income through 2026. No tax benefit has been reported in the July 31, 2013 or 2012 financial statements due to the uncertainty surrounding the realizability of the benefit. The potential tax benefit is offset by a valuation allowance of the same amount.