NOTE 6 - INCOME TAXES

3 Months Ended

Sep. 30, 2015

NOTE 6 - INCOME TAXES

For the period from February 21, 2012 (Date of Inception) through September 30, 2015, the Company has incurred net losses and, therefore, has no tax liability. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately $14,172 at September 30, 2015, and will expire in the year 2033. The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:

Deferred tax asset attributable to:

				For the period from
				February 21, 2012
	For the			(Date of Inception)
	Nine months ended			through
	September 30, 2015			September 30, 2015

Net operating loss carryover	$	852		$	4,818
Valuation allowance		(852	)		(4,818	)

Net deferred tax asset	$	–		$	–

Realization of deferred tax assets is not practical until subsequent to a business combination with target business opportunity, and such a target business opportunity has yet to be finalized.

The provision for income taxes consists of the following:

				For the period from
				February 21, 2012
	For the			(Date of Inception)
	Nine months ended			through
	September 30, 2015			September 30, 2015

Current tax	$	852		$	4,818
Change in deferred tax asset		(852	)		(4,818	)

Change in valuation allowance	$	–		$	–

The Company has elected to classify interest and/or penalties related to an uncertain position, if and when required, as part of other expenses in the statements of operation. No such amounts have been incurred or accrued through September 30, 2015 by the Company.

For the period from February 21, 2012 (Date of Inception) through September 30, 2015, there is no unrecognized tax benefit. Management does not anticipate any potential future adjustments which would result in a material change to its financial tax position. As of September 30, 2015, the Company did not accrue any interest and penalties.

MJ Pharmaceuticals Inc. 10-Q