Income Taxes

12 Months Ended

Oct. 31, 2021

Note 4 - Income Taxes

The Company provides for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate of 21% to the income tax amount recorded as of October 31, 2021 and 2020 are as follows:

	October 31,			October 31,
	2021			2020
Net Operating Loss	$	(30,829	)	$	(36,480	)
Effective tax rate		21	%		21	%
Income Tax expense		(6,474	)		(7,661	)
Less: valuation allowance		6,474			7,661
Income Tax Expense	$	-		$	-

Net deferred tax assets consist of the following components as of October 31, 2021 and 2020:

	October 31,			October 31,
	2021			2020
Net Operating Loss carryforward	$	71,275		$	64,801
Valuation allowance		(71,275	)		(64,801	)
Net deferred tax asset	$	-		$	-

At October 31, 2021, the Company had $339,406 of net operating losses (“NOLs”), which begin to expire beginning in 2039. NOLs generated in tax years prior to July 31, 2018, can be carryforward for twenty years, whereas NOLs generated after July 31, 2018 can be carryforward indefinitely

The NOL carry forwards are subject to certain limitations due to the change in control of the Company pursuant to Internal Revenue Code Section 382. The Company experienced a change in control for tax purposes in August 2020 (see Note 1). Due to change of control, the Company will not be able to carryover approximately $294,765 of NOL generated before August 12, 2020 to offset future income.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Huaizhong Health Group, Inc. 10-K