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

7. Income Taxes (Details - Reconciliation)

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7. Income Taxes (Details - Reconciliation) - USD ($)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
[1]
Dec. 31, 2015
Dec. 31, 2015
Income Taxes        
Profit/(loss) before tax from continuing operations $ (2,758,561) $ (427,636) $ (5,969,746) [1] $ (5,969,746) [1]
Income tax expense/(benefit) (769,639) (134,278)   (1,874,501) [1]
Effect of (income)/expenses that are exempt from taxation 0 9,795   965,868 [1]
Effect of expenses that are not deductible in determining taxable profit 235,350 180,042   460,519 [1]
Effect of unused tax losses and tax offsets not recognized as deferred tax assets 746,964 136,125   836,295 [1]
Effect of previously unrecognized and unused tax losses and deductible temporary differences now recognized as deferred tax assets (28,760) (34,200)   (34,904) [1]
Effect of new tax rule in fiscal unit [2] 6,614 (48,284)   (148,834) [1]
Effect of prior year taxes (14,227) 6,663   (12,664)
Effect of future change of fiscal aliquota*** on deferred taxes (previous years) [3] 0 (261,253)   0 [1]
Effect of future change of fiscal aliquota on deferred taxes (generated in 2016) 0 18,258   0 [1]
Others (1,796) 39,054   (47,886) [1]
Income tax expense/(benefit) recognized in profit or loss relating to continuing operations (current & deferred) $ 174,506 $ (87,939) $ 143,893 $ 143,893 [1]
[1] Restated for discontinued operations (see note 9 - Discontinued Operations).
[2] During 2016, the Italian fiscal authority issued a new tax rule beginning in the fiscal year ended December 31, 2015 and continuing through 2017 allowing utilization of fiscal unit structure in tax reporting to offset and utilize operating losses amongst subsidiaries with common ownership, resulting in tax benefits to the Group.
[3] Aliquota is the combined total tax rate of IRES and IRAP (see note 8 Deferred Taxes).