4. Income Taxes

The Company provides for income taxes asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse. This method requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 21% and 39%, respectively, to the net loss before provision for income taxes for the following reasons:

	March 31,
	2020			2019
Income tax expense at statutory rate	$	546		$	2,272
Valuation Allowance		(546	)		(2,272	)
Income tax expense per books	$	—		$	—

Net deferred tax assets consist of the following components as of March 31, 2020 and June 30, 2019:

	March 31,			June 30,
	2020			2019
Net Operating Loss Carryover	$	180,088		$	177,488
Valuation Allowance		(180,088	)		(177,488	)
Net Deferred Tax Asset	$	—		$	—