INCOME TAXES

12 Months Ended

May 31, 2016

As of May 31, 2016, the Company had net operating loss carry forwards of approximately $37,507 that may be available to reduce future years' taxable income in varying amounts through 2033. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

The provision for Federal income tax consists of the following:

	May 31, 2016			May 31, 2015
Federal income tax benefit attributable to:
Current Operations	$	3,713		$	1,874
Less: valuation allowance		(3,713	)		(1,874	)
Net provision for Federal income taxes	$	-		$	-

The cumulative tax effect at the expected rate of 15% of significant items comprising our net deferred tax amount is as follows:

	May 31, 2016			May 31, 2015
Deferred tax asset attributable to:
Net operating loss carryover	$	5,625		$	1,912
Less: valuation allowance		(5,625	)		(1,912	)
Net deferred tax asset	$	-		$	-

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $37,507 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.

PETRICHOR CORP. 10-K