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EXCEL - IDEA: XBRL DOCUMENT - Earn-A-Car Inc.Financial_Report.xls
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EX-31 - Earn-A-Car Inc.ex31-1.txt
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10-Q - Earn-A-Car Inc.g6534.txt
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v2.4.0.6
PROVISION FOR INCOME TAXES
9 Months Ended
Nov. 30, 2012
PROVISION FOR INCOME TAXES  
PROVISION FOR INCOME TAXES
6. PROVISION FOR INCOME TAXES
 
The Company has no obligation for any federal or state income taxes in the
United States. Further, no provision has been made for taxes in South Africa,
which has a corporate income tax rate of 28%, for the years ended February 29,
2012 and February 28, 2011 because the taxable losses and loss carryovers exceed
the income in those years. At February 29, 2012 and February 28, 2011,
respectively, the Company had net losses of approximately $379,175 and $431,567
available in South Africa that can be carried forward to offset future taxable
income. Due to the uncertainty of future taxable income, the Company has
recorded a valuation allowance of 100% of the deferred tax asset, so that our
deferred tax asset at both November 30, 2012 and February 29, 2012 was $0.