Note 4 - Income Taxes

12 Months Ended

Oct. 31, 2019

Notes to Financial Statements

Income Taxes

Note 4 – Income Taxes

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has a net carryforward operating loss of $73,225,which starts to expire in 2038. The Company adopted ASC 740, “Accounting for Income Taxes,” as of its inception. Pursuant to ASC 740, the Company is required to compute tax asset benefits for non-capital losses carried forward. The potential benefit of the net operating loss has not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the loss carried forward in future years.

The U.S. Tax Cuts and Jobs Act of 2017 (the “2017 Act”) reduced the corporate tax rate from 34% to 21% for tax years beginning after December 31, 2017. For net operating losses (“NOLs”) arising after December 31, 2017, the 2017 Act limits a taxpayer’s ability to utilize NOL carryforwards to 80% of taxable income. In addition, NOLs arising after 2017 can be carried forward indefinitely, but carryback is generally prohibited. NOLs generated in tax years beginning before January 1, 2018 will not be subject to the taxable income limitation. The 2017 Act would generally eliminate the carryback of all NOLs arising in a tax year ending after 2017 and, instead, would permit all such NOLs to be carried forward indefinitely.

Significant components of the Company’s deferred tax assets and liabilities as of October 31, 2019 and 2018 after applying enacted corporate income tax rates, is net operating loss carryforward of $15,377 and $919, and a valuation allowance of $15,377 and $919, respectively, which is a total deferred tax asset of $0. The Company’s tax returns for 2018 and 2019 remain open to examination.

		October 31, 2019		October 31, 2018
Deferred tax asset, generated from NOL at statutory rates	$	15,377		$	919
Valuation allowance	$	(15,377	)		(919)
	$	-		$	-

The reconciliation of the effective income tax rate to the federal statutory rate is as follows:

Federal income tax rate	21.0	%
Increase in valuation allowance	(21.0)	%
Effective income tax rate	0.0	%