Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

INCOME TAXES (Tables)

v3.20.4
INCOME TAXES (Tables)
12 Months Ended
Sep. 30, 2020
INCOME TAXES  
Schedule of deferred income taxes

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 

 

    

2020

    

2019

    

2018

Deferred tax assets:

 

 

  

 

 

  

 

 

  

Bad debt allowance recorded for accounts receivable

 

$

303,056

 

$

289,756

 

$

299,596

Inventory provision

 

 

16,087

 

 

 —

 

 

 —

Net operating loss carry-forward

 

 

539,354

 

 

159,219

 

 

152,257

Less: valuation allowance

 

 

(133,885)

 

 

(159,219)

 

 

(152,257)

Total

 

$

724,612

 

$

289,756

 

$

299,596

 

Schedule of income taxes attributed to continuing operations

 

Income taxes for the years ended September 30, 2020 and 2019 are attributed to the Company’s continuing operations in China and consisted of:

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended September 30, 

 

    

2020

    

2019

    

2018

Current

 

$

(1,021,565)

 

$

250,186

 

$

1,435,521

Deferred

 

 

(406,637)

 

 

(1,958)

 

 

(37,311)

Total

 

$

(1,428,202)

 

$

248,228

 

$

1,398,210

 

Schedule of income tax reconciliation

 

Per the consolidated statements of operations and comprehensive income, the income tax expenses for the Company can be reconciled to the income before income taxes for the years ended September 30, 2020 and 2019 as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended September 30, 

 

 

    

2020

    

2019

    

2018

 

Income before taxes excluded the amounts of loss incurring entities

 

$

 —

 

$

8,979,640

 

 

9,982,326

 

PRC EIT tax rates

 

 

15

%  

 

15

%

 

15

%

Tax at the PRC EIT tax rates

 

 

 —

 

 

1,346,946

 

 

1,497,349

 

Tax effect of  75%  (50% for 2018 and 2017) R&D expenses deduction

 

 

 —

 

 

(163,357)

 

 

(123,948)

 

Tax effect of deferred tax recognized

 

 

(406,637)

 

 

(1,958)

 

 

(37,311)

 

Tax effect of non-deductible expenses

 

 

 —

 

 

18,307

 

 

62,120

 

Change in unrecognized tax benefits

 

 

(1,021,565)

 

 

(951,710)

 

 

 —

 

Income tax expense (recovery)

 

$

(1,428,202)

 

$

248,228

 

 

1,398,210

 

 

Schedule of changes in unrecognized tax benefits

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended September 30,

 

    

2020

    

2019

    

2018

Balance at beginning period

 

$

4,176,537

 

$

4,098,783

 

$

2,789,135

Addition for tax positions of the current year

 

 

(154,041)

 

 

993,194

 

 

1,309,648

Lapse of statute of limitations

 

 

(1,054,163)

 

 

(915,440)

 

 

 —

Effect of exchange rate changes

 

 

220,281

 

 

 —

 

 

 —

Balance at ending period

 

$

3,188,615

 

$

4,176,537

 

$

4,098,783