Income Taxes

12 Months Ended

Mar. 31, 2014

NOTE 13 INCOME TAXES

The Company’s provision for income taxes was $0 and $0 for the years ended March 31, 2014 and 2013 respectively.

The components of income (loss) before provision for income taxes for the years ended March 31, 2014 and 2013 are as follows:

	Year Ended March 31,
	2014			2013
Domestic	$	(52,690	)	$	-
Foreign		(79,314,822	)		-
Loss before provision for income taxes	$	(79,367,512	)	$	-

Reconciliation between the statutory rate and the effective tax rate is as follows at March 31, 2014 and 2013:

	Year Ended March 31,
	2014			2013
Effective Tax Rate Reconciliation:
Federal statutory tax rate		(35.0	)%		(35.0	)%
State taxes, net of federal benefit		0.0	%		0.0	%
Change in valuation allowance		35.0	%		35.0	%
Effective tax rate		0.0	%		0.0	%

Our deferred tax assets are as follows:

	March 31,
	2014			2013
Deferred tax assets:
Net operating loss carryforward	$	30,454		$	12,012
Total deferred tax assets		30,454			12,012
Less: valuation allowance	$	(30,454	)	$	(12,012	)
Deferred tax assets, net of valuation allowance	$	-		$	-

ASC 740 requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. In the management’s opinion, it is uncertain whether the Company will generate sufficient taxable income in the future to fully utilize the net deferred tax asset. Accordingly, a full valuation allowance equal to the deferred tax asset has been recorded. The total deferred tax asset is calculated by multiplying a 35% marginal tax rate by the cumulative Net Operating Loss of $87,010. The total valuation allowance is equal to the total deferred tax asset. The valuation allowance is $87,010 for the year ended March 31, 2014.

At March 31, 2014 and 2013, the Company has available unused federal operating loss carry forwards of approximately $87,010 and $34,321, respectively for federal taxes and that may provide future tax benefits, expiring between 2030 and 2034.

- 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+ Details

Clone Algo Inc. 10-K