INCOME TAXES

3 Months Ended

May 31, 2014

At May 31, 2014, the Company has estimated tax loss carry forwards for tax purpose of approximately $88,587, which expire by 2030. These amounts may be applied against future taxable income. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization has not been determined to be more likely than not to occur.

The actual income tax provisions differ from the expected amounts calculated by applying the statutory income tax rate to the Company’s loss before income taxes. The components of these differences are as follows:

	2014 - $ -			2013 - $ -
Net loss carry forward		88,607			55,256
Statutory tax rate		34	%		34	%
Expected recovery of income taxes at standard rates		26,705			18,879
Change in valuation allowance		(26,705	)		(18,879	)
Income tax provision					-

- 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

Penola Inc. 10-Q