Income taxes

12 Months Ended

Dec. 31, 2013

5.	Income taxes

The Company is organized under the laws of Bermuda. Bermuda currently imposes no taxes on corporate income or capital gains outside of Bermuda. The Company’s subsidiary is a U.S. corporation and is subject to U.S. income tax and files income tax returns in the U.S. and the State of Florida. For 2013 and 2012, the subsidiary has net taxable losses. The subsidiary will have approximately $11,585,000 in net operating losses to carry forward. The remaining net operating loss carry forwards expire in periods through 2032 as follows: $757,000 in 2018, $622,000 in 2019, $749,000 in 2020, $1,884,000 in 2021, $1,693,000 in 2022, $132,000 in 2023, $57,000 in 2024, $1,434,000 in 2026, $135,000 in 2027, $112,000 in 2028, $480,000 in 2029, $3,000 in 2031, and $3,527,000 in 2032. For financial reporting purposes, a valuation allowance has been recognized to offset the deferred tax assets relating to those carry forwards.

Significant components of the Company’s deferred tax assets were as follows:


	December 31,
	2013			2012
Net operating losses	$	4,055,000		$	4,055,000
Accruals to related parties		314,000			305,000

Total deferred tax assets		4,369,000			4,360,000
Valuation allowance		(4,369,000	)		(4,360,000	)

Net deferred tax assets	$	—		$	—

Components of the income tax provision for the years ended December 31, are as follows:


	2013		2012

Provision for income taxes
Current provision (benefit)	$	—	$	—
Deferred asset valuation allowance (reversal)		—		—

Net income tax provision (benefit)	$	—	$	—

The Company files income tax returns in the U.S. federal jurisdiction, and in various state jurisdictions. The Company’s income tax returns for the past three years are subject to examination by tax authorities, except possibly in future years should it utilize any net operating loss originating prior to 2010.

The Company has reviewed and evaluated the relevant technical merits of each of its tax positions in accordance with accounting principles generally accepted in the United States of America for accounting for uncertainty in income taxes, and determined that there are no uncertain tax positions that would have a material impact on the financial statements of the Company.

- 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.

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COASTAL CARIBBEAN OILS & MINERALS LTD 10-K