Kitco denies role in Quebec gold scam
A Montreal company being investigated by Revenue Quebec as part of an alleged gold-refining tax scam has denied any wrongdoing.
More than 175 Revenue Quebec agents conducted raids Thursday on homes, offices, accountants and bankruptcy trustees in the Montreal area. The agency said the scam allegedly involved a system of repetitive and false billing in transactions involving more than 100 companies.
It also said false tax returns were prepared for certain companies that provided the fake invoices.
One company under investigation is Kitco Metals Inc. In a statement issued late Thursday, Kitco denied the allegations.
"Kitco Metals Inc. has never participated in any tax fraud, nor has it ever carried out any fictitious transactions," the company said.
"Kitco buys precious metals scrap and pays the suppliers sales taxes on these purchases for which Kitco receives a tax credit. It is the responsibility of these suppliers to pay back the sales taxes to Revenue Quebec."
Kitco said it has hired a law firm to evaluate all available recourses. The company said it is also seeking to have an interim receiver appointed so it can continue operations under the supervision of an accounting firm.
Revenue Quebec is probing sales of $1.8 billion by the network, with alleged provincial sales-tax evasion in excess of $150 million. The agency is also investigating evasion of the federal GST on the same sales.
Kitco Metals Inc., founded in 1977, says it is one of the largest retailers of precious metals in the world, and a specialized supplier of refining services.