(5)	INCOME TAXES

Aurum files its income tax returns on an accrual basis.

The Company follows the accounting requirements associated with uncertainty in income taxes using the provisions of FASB ASC 740, Income Taxes. Using that guidance, tax positions initially need to be recognized in the consolidated financial statements when it is more-likely-than-not the positions will be sustained upon examination by the tax authorities. It also provides guidance for de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of July 31, 2015, the Company has no uncertain tax positions that qualify for either recognition or disclosure in the consolidated financial statements.

The Company is required to file tax returns in the United States and a summary of the deferred tax asset at July 31, 2015 is as follows:

	USA $			Total $
Deferred tax assets

Net operating loss carry-forward		827,643			827,643
Less valuation allowance		(827,643	)		(827,643	)
Net deferred taxes		-			-

The Company has available net operating loss carry forwards as of October 31, 2014, which are subject to limitations, aggregating approximately $2,364,000 which would expire in years 2028 through 2034.

The Company’s tax returns for all years since fiscal 2012 remain open to examination by the respective tax authorities. There are currently no tax examinations in progress.