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8. INCOME TAXES | 12 Months Ended
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Jun. 30, 2013
Income Tax Disclosure [Abstract] |
8. INCOME TAXES | The Company follows ASC 740-10-10, under which an entity recognizes deferred tax assets and liabilities for future tax consequences or for events that were previously recognized in the Company’s financial statements or tax returns. The measurement of deferred tax assets and liabilities is based on enacted tax law provisions. The effects of future changes in tax laws or rates are not anticipated. As of June 30, 2013, the Company operated exclusively in Australia. The Company was wholly subject to Australia income tax laws and regulations, which are administered by the Australian Taxation Office for the years ended June 30, 2013 and 2012 and all prior years. On November 23, 2010, Propanc Health Group Corporation was incorporated in the state of Delaware. In January 2011, Propanc Health Group Corporation acquired all of the outstanding shares of Propanc PTY LTD on a one-for-one basis making it a wholly-owned subsidiary. As a result of these transactions, the Company is subject to the income tax laws of both the United States and Australia for the years ended June 30, 2012 and 2013. For the years ended June 30, 2013 and 2012, all the Company’s loss before income taxes resulted entirely from its Australian activities and its taxable loss was only subject to Australian tax law. At June 30, 2013, the Company has a net operating loss (NOL) for Australian tax purposes only, that approximates $9,066,000. Consequently, the Company may have NOL carryforwards available for income tax purposes, which will continue to be available until they are recovered through earning taxable income. Deferred tax assets would arise from the recognition of anticipated utilization of these net operating losses to offset future taxable income. The NOL is subject to a reduction of $1,250,567 for research and development credits granted by the Australian Taxation Office through June 30, 2013. The components for the provision for income taxes are as follows:
|  | Year Ended |
|  | June 30, |  |  | June 30, |
|  | 2013 |  |  | 2012 |
Current Taxes |  | $ | (60,461) |  |  | $ | (173,928) |
Deferred Taxes |  |  | - |  |  |  | - |
Provision for Income Taxes |  | $ | (60,461) |  |  | $ | (173,928) |
The items accounting for the difference between income taxes at the Australia statutory rate and the provision for income taxes are as follows:
| Year Ended |
| June 30, |  |  | June 30, |
| 2013 |  |  | 2012 |
| Amount |  | Impact on Rate |  |  | Amount |  |  | Impact on Rate |
Income Tax Expense (Benefit) at Australia Statutory Rate | $(492,334) |  | (32.75) | % |  | $ | (3,482,491) |  |  |  | (30.00) | %
Expenses paid by parent on behalf of Foreign subsidiary | 351,935 |  | 23.41 | % |  |  | - |  |  |  | 0.00 | %
R&D Refundable Tax Credit | (60,461) |  | (4.02) | % |  |  | (173,928) |  |  |  | (1.50) | %
Reduction of NOL Carryforward Due to R&D Tax Credit | 60,461 |  | 4.02 | % |  |  | 173,928 |  |  |  | 1.50 | %
Deferred Tax Valuation Allowance | (363,703) |  | (24.20) | % |  |  | 3,211,114 |  |  |  | 27.66 | %
Foreign Exchange Rate Changes | 443,641 |  | 29.52 | % |  |  | 97,449 |  |  |  | 0.84 | %
Total Income Tax Expense (Benefit) | $(60,461) |  | (4.02) | % |  | $ | (173,928) |  |  |  | (1.50) | %
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. Significant components of the Company's net deferred income taxes are as follows:
|  | June 30, |  |  | June 30, |
|  | 2013 |  |  | 2012 |
Current Deferred Tax Assets |  |  |  |  |  |
Provision for annual leave |  | $ | 14,813 |  |  | $ | 12,630 |
Superannuation |  |  | 3,699 |  |  |  | 4,114 |
Total Current Deferred Tax Assets |  | $ | 18,512 |  |  | $ | 16,744 |
Current Deferred Tax Liabilities |  |  |  |  |  |  |  |
Prepaid Investor Services |  | $ |  |  |  | $ | - |
Prepaid expenses |  |  |  |  |  |  | - |
Prepaid insurance |  |  |  |  |  |  | - |
Accounts Payable/trade creditors |  |  |  |  |  |  | - |
Patent Costs |  |  |  |  |  |  | - |
Total Current Deferred Tax Liabilities |  | $ |  |  |  | $ | - |
Non-Current Deferred Tax Assets |  |  |  |  |  |  |  |
Prepaid Investor Services |  | $ | 1,393,309 |  |  | $ | 2,284,981 |
Capital Raising Costs |  |  | 27,752 |  |  |  | 30,870 |
Legal Costs |  |  | 28,337 |  |  |  | 30,948 |
Intellectual Property |  |  | 13,854 |  |  |  | 15,410 |
Patent Costs |  |  | 32,425 |  |  |  | 23,518 |
Formation Expense |  |  | 8,491 |  |  |  | 9,445 |
Net Operating Loss Carryover |  |  | 2,418,795 |  |  |  | 1,893,262 |
Foreign Exchange Loss (OCI) |  |  | 73,377 |  |  |  | 107,675 |
Total Non-Current Deferred Tax Assets |  |  | 3,996,340 |  |  |  | 4,396,109 |
Deferred Tax Valuation Allowance |  |  | (4,014,862) |  |  |  | (4,412,853) |
Total Non-Current Deferred Tax Assets |  |  | (18,512) |  |  |  | (16,744) |
Total Deferred Tax Assets (Net) |  | $ |  |  |  | $ | - |
Management has determined that the realization of the net deferred tax asset is not assured and has created a valuation allowance for the entire amount of such benefits. The Company follows ASC 740-10, which provides guidance for the recognition and measurement of certain tax positions in an enterprise’s financial statements. Recognition involves a determination whether it is more likely than not that a tax position will be sustained upon examination with the presumption that the tax position will be examined by the appropriate taxing authority having full knowledge of all relevant information. The Company’s policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the statement of operations. As of June 30, 2013, the Company had no unrecognized tax benefits. There were no changes in the Company’s unrecognized tax benefits during the years ended June 30, 2013 and 2012. The Company did not recognize any interest or penalties during fiscal 2013 or 2012 related to unrecognized tax benefits. The income tax returns filed for the tax years from inception will be subject to examination by the relevant taxing authorities.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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