Annual report pursuant to Section 13 and 15(d)

6. INCOME TAXES

v2.4.0.8
6. INCOME TAXES
 12 Months Ended
Mar. 31, 2014
Income Tax Disclosure [Abstract]  
6. INCOME TAXES

Losses before income taxes derived from U.S. operations are for the year ended March 31, 2014 and 2013 amounted to $1,571,749 and $3,088,865, respectively.

 

The income tax benefit in the Statements of Operations is comprised of:

 

 

Year ended

March 31, 2014

  

Year ended

March 31, 2013
       
Current tax expense

$                    -

  

$                     -
Deferred tax benefit                                    

-

  

-
       
 

$                    -

  

$                     -

 

The difference between the income tax benefits reported and amounts computed by applying the U.S. Federal rate to pretax income consisted of the following:

 

 

Year ended

March 31, 2014

  

Year ended

March 31, 2013
       
Tax at federal statutory rate (34%)

$ (5,756,400)

  

$ (5,222,005)
Effect of lower foreign tax rates

-

  

-
Non-deductible expenses

-

  

-
Valuation allowance

5,756,400

  

5,222,005
 

$                    -

  

$                    -

 

As of March 31, 2014 the Company had net operating loss carry forwards for income tax purposes of $16,930,588, which if unused, will expire in years 2026 through 2034. A valuation allowance is recorded against the deferred tax assets resulting from the Company’s net operating loss.

 

The components of deferred tax assets and deferred tax liabilities are as follows:

 

 

March 31, 2014

  

March 31, 2013
       
Deferred tax assets:      
Tax losses carried forward   $    5,756,400     $    5,222,005
Valuation allowance (5,756,400)   (5,222,005)
                     -   -
Deferred tax liabilities:      
Accrued interest income

-

  

                -
 

-

  

-
Net deferred tax liability

$                   -

  

$                -

 

The Company has deferred income taxes only in the U.S.

 

Accounting for Uncertainty in Income Taxes - In accordance with generally accepted accounting principles, the Company has analyzed its filing positions in all jurisdictions where it is required to file income tax returns. The Company’s U.S. federal income tax returns for the fiscal years ended March 31, 2011 through 2013 remain subject to examination. The Company currently believes that all significant filing positions are highly certain and that all of its significant income tax filing positions and deductions would be sustained upon an audit. Therefore, the Company has no reserves for uncertain tax positions. No interest or penalties have been levied against the Company and none are anticipated, therefore no interest or penalties have been included in the provision for income taxes.