| - INCOME TAXES | NOTE 8 - INCOME TAXES The Company adopted the provisions of uncertain tax positions as addressed in ASC 740-10-65-1. As a result of the implementation of ASC 740-10-65-1, the Company recognized no increase in the liability for unrecognized tax benefits. On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act (H.R. 1) (the “Act”). The Act includes a number of changes in existing tax law impacting businesses including, among other things, a permanent reduction in the corporate income tax rate from 34% to 21%. The rate reduction took effect on January 1, 2018. The Company has no tax position at February 28, 2019 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The Company does not recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. No such interest or penalties were recognized during the period presented. The Company had no accruals for interest and penalties at February 28, 2019. The Company's utilization of any net operating loss carry forward may be unlikely as a result of its intended activities. CANNABIS SUISSE CORP. (Formerly Geant Corp.) NOTES TO THE FINANCIAL STATEMENTS FEBRUARY 28, 2019 (UNAUDITED) NOTE 8 - INCOME TAXES (CONTUNUED) The valuation allowance at February 28, 2019 was $12,847. The net change in valuation allowance during the nine months ended February 28, 2019 was $3,706. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance as of February 28, 2019. All tax years since inception remains open for examination only by taxing authorities of US Federal and state of Nevada. The Company has a net operating loss carryforward for tax purposes totaling $61,174 at February 28, 2019, expiring through 2035. There is a limitation on the amount of taxable income that can be offset by carryforwards after a change in control (generally greater than a 50% change in ownership). Temporary differences, which give rise to a net deferred tax asset, are as follows: As of February 28, 2019 As of May 31, 2018 Non-current deferred tax assets: Net operating loss carryforward $ (61,174) (43,526) Stock based compensation $ - - Inventory obsolescence $ - - Accrued officer compensation $ - - Total deferred tax assets $ (12,847) (9,140) Valuation allowance $ 12,847 9,140 Net deferred tax assets $ - - |
