10. Income Taxes

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Note 10. Income Taxes

The Company is domiciled in the tax-free jurisdiction of Anguilla, British West Indies. The computed benefit / expense differed from the amounts computed by applying the United States of America federal income tax rate of 34 percent and various other rates for other jurisdictions to the pretax income / losses from operations as a result of the following:

	2012			2011
Computed "expected" tax benefit	$	15,720		$	233,010
Reduction in income taxes resulting from income taxes in other tax jurisdictions		(15,468	)		(235,986	)
Other		(33	)		(246	)
Change in taxation rates in other jurisdictions		57,679			(184	)
Change in exchange rates		3,112			(2,522	)
Change in valuation allowance		(62,018	)		2,236
	$	(1,008	)	$	(3,692	)

 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2012 and 2011 are presented below:

	2012			2011
Deferred tax assets:
Net operating loss carry forwards	$	79,681		$	141,699
Valuation Allowance		(79,681	)		(141,699	)
	$	—		$	—

The valuation allowance for deferred tax assets as of December 31, 2012 and 2011, was $79,681 and $141,699, respectively.  The net change in the total valuation allowance was a decrease of $62,018 for the year ended December 31, 2012, and an increase of $2,236 for the year ended December 31, 2011. 

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those differences become deductible.

Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in assessing the realizability of deferred tax assets.