Annual report pursuant to Section 13 and 15(d)

Note 12 - Income Taxes

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Note 12 - Income Taxes
 12 Months Ended
Aug. 31, 2016
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
Note 12 – Income Taxes

The Company accounts for income taxes under FASB ASC 740-10, which provides for an asset and liability approach of accounting for income taxes. Under this approach, deferred tax assets and liabilities are recognized based on anticipated future tax consequences, using currently enacted tax laws, attributed to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts calculated for income tax purposes.

As of August 31, 2016, the Company incurred a net operating loss and, accordingly, no provision for income taxes has been recorded. In addition, no benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets.

The tax effects of the temporary differences that give rise to the Company’s estimated deferred tax assets and liabilities are as follows:

  
  
August 31,
    
August 31,
  
 
  
2016
    
2015
  
Federal and State Statutory Rate
    
35.00
%
    
35.00
%
Net operating loss carry forwards
  
$
202,349
    
$
124,427
  
Valuation allowance for deferred tax assets
    
(202,349
)
    
(124,427
)
Net deferred tax assets
  
$
-
    
$
-
  

As of August 31, 2016, the Company had net operating loss carry forwards of approximately $578,141 available to offset future taxable income.  The net operating loss carry forwards, if not utilized, will begin to expire in 2021.

Based on the available objective evidence, including the Company’s history of its loss, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the Company provided for a full valuation allowance against its net deferred tax assets at August 31, 2016.  The Company had no uncertain tax positions as of August 31, 2016.