|Kitco Charged With Massive Tax Fraud Scheme, Business Viability In Question|
|Financial Post via ZeroHedge, 10/06/2011 (traduire en Français )|
One of Canada's largest gold traders has become ensnared in allegations of tax fraud after Revenue Quebec swooped on a web of people and companies it claims may have bilked taxpayers of at least $150 million.
Claiming widespread tax fraud in the gold refining and trading sector, Revenue Quebec and police investigators this week conducted searches and seizures at 70 locations, mostly in the Montreal area. One of the targeted sites was the downtown Montreal location of Kitco, a major buyer and seller of gold. A note on the floor of its office on Thursday said that “operational constraints” had forced the service counter to close this week.
In a communique, Revenue Quebec said that by converting pure gold into a gold object and then refining it back into a pure state, some in the gold industry had used “artificial transactions” to obtain refunds of taxes that were never actually paid.