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Income Taxes
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3 Months Ended | |||
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Jun. 30, 2011
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| Income Taxes |
The
income tax provision for the quarter represents foreign withholding
taxes related to continuing operations paid in jurisdictions
outside of the US. Profit from discontinued operations is disclosed
net of taxes – these are income taxes currently payable in
foreign jurisdictions, primarily the United Kingdom based on
revenue derived in that territory. The tax provision arising from
the gain on disposal of discontinued operations is offset against
available tax losses.
Management
has evaluated and concluded that there are no significant uncertain
tax positions requiring recognition in the Company’s
financial statements as of June 30, 2011.
ASC
740 requires the consideration of a valuation allowance to reflect
the likelihood of realization of deferred tax assets. Significant
management judgment is required in determining any valuation
allowance recorded against deferred tax assets. The Company adopted
the provisions of ASC 740 on January 1, 2008 and there was no
difference between the amounts of unrecognized tax benefits
recognized in the balance sheet prior to the adoption of ASC 740
and those after the adoption of ASC 740. There were no unrecognized
tax benefits not subject to valuation allowance as of June 30, 2011
and March 31, 2011. The Company recognized no interest and
penalties on income taxes in its statement of operations for the
periods ended June 30, 2011 and 2010.
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