Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 59

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 59
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 for the U.S. Internal Revenue Service to assess the income tax returns of a taxpayer expires three years from
the due date of the income tax return or the date on which it was filed, whichever is later.

In
accordance with the Hong Kong profits tax regulations, a tax assessment by the IRD may be initiated within six years after the relevant
year of assessment, but that period is extendable to 10 years in the case of potential willful underpayment or evasion.

In
accordance with the PRC Tax Administration Law on the Levying and Collection of Taxes, the PRC tax authorities generally have up to five
years to assess underpaid tax plus penalties and interest for PRC entities’ tax filings. In the case of tax evasion, which is not
clearly defined in the law, there is no limitation on the tax years open for investigation. Accordingly, the PRC entities remain subject
to examination by the tax authorities based on the above.

As
of June 30, 2025 and September 30, 2024, the Company did not accrue any liability, interest, or penalties related to uncertain tax positions
in the provision for income taxes in its consolidated financial statements. The Company does not expect that its assessment regarding
unrecognized tax positions will materially change over the next 12 months.

    34

NOTE
15 - RIGHT-OF-USE ASSETS AND LEASE

The
Company has operating leases for its office facilities, automobiles and employee accommodation and finance lease for equipment for revenue
service. The Company classified the equipment for revenue service as finance lease as the lessor will transfer the ownership of equipment
for revenue service to the Company by the end of the lease term.

Leases
with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognized lease expense on a straight-line
basis over the lease term for operating lease. Meanwhile, the Company recognized the finance leases ROU assets and interest on an amortized
cost basis.

The
following table provides a summary of leases as of June 30, 2025 and September 30, 2024:

 SUMMARY
OF OPERATING LEASE ASSETS AND LIABILITIES

    Assets/liabilities 
    Classification 
    June 30, 2025  
    September 30, 2024 
  
    Assets 

    Operating lease right-of-use assets 
    Operating lease assets 
    $5,269  
    $284