INCOME TAXES

12 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE J - INCOME TAXES

The Company accounts for income taxes using the asset and liability method described in SFAS No. 109, “Accounting For Income Taxes”, the objective of which is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting and the tax basis of the Company’s assets and liabilities at the enacted tax rates expected to be in effect when such amounts are realized or settled. A valuation allowance related to deferred tax assets is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized. In recognition of the uncertainty regarding the ultimate amount of income tax benefits to be derived, the Company has recorded a full valuation allowance at June 30, 2021 and 2020.

The provision (benefit) for income taxes includes income taxes currently payable and those deferred because of temporary differences between the financial statement and tax bases of assets and liabilities.

Significant components of the Company’s deferred tax assets and liabilities are calculated at an estimated effective tax rate of 21%. (35% for tax year 2017)

The provision for (benefit from) income taxes differs from the amount computed by applying the statutory United States federal income tax rate for the periods presented to income (loss) before income taxes. The income tax rate was 21% for the year ended June 30, 2021 and 2020. The sources of the difference are as follows:

GLOBAL TECHNOLOGIES, LTD

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended June 30, 2021 and 2020

NOTE J - INCOME TAXES (cont’d)

	Year Ended
	June 30, 2021			June 30, 2020
Expected tax at 21% and 21%, respectively	$	(888,019	)	$	(115,698	)
Non-deductible stock-based compensation		35,767			21,000
Non-deductible loss (nontaxable income) from derivative liability		(91,628	)		(276,571	)
Non-deductible default principle		28,812			-
Non-deductible loss on issuance of convertible nots		579,479			-
Non-deductible amortization of debt discounts		176,636			331,252
Impairment of goodwill		99,398			-
Forgiveness of debt and accrued interest		(70,725	)		-
Increase (decrease) in Valuation allowance		130,280			40,017
Provision for (benefit from) income taxes	$	-		$	-

All tax years remain subject to examination by the Internal Revenue Service.

Significant components of the Company’s deferred income tax are as follows:

	June 30, 2021			June 30, 2020
Unpaid accrued officer and director compensation	$	-		$	16,759
Net operating loss carry-forwards		30,128,849			29,383,089
Valuation allowance		(30,128,849	)		(29,399,848	)
Net non-current deferred tax asset	$	-		$	-

Based on management’s present assessment, the Company has not yet determined it to be more likely than not that a deferred tax asset of $30,128,849 attributable to the net operating loss carryforward as of June 30, 2021 will be realized. Accordingly, the Company has provided a 100% allowance against the deferred tax asset in the financial statements at June 30, 2021. The Company will continue to review this valuation allowance and make adjustments as appropriate. $28,980,000 of the net operating loss carryforward expires in the year 2022.

Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited.