MONTREAL – Revenue Quebec has a bone to pick with Kitco Metals Inc., one of the world’s largest retailers of precious metals. The province alleges that Kitco has fraudulently withheld taxes that should have been turned over to the government.
In a n release issued late last week, Kitco vigorously defended itself, saying the company “…has never participated in any tax fraud, nor has it ever carried out any fictitious transactions. In all respects, Kitco vigorously contests all aspects of Revenu Quebec’s investigation. Mindful of protecting its irreproachable reputation, Kitco has mandated attorneys, of the law firm of Gowling Lafleur Henderson, to evaluate all available recourses with regards to the allegations of Revenu Quebec.”
Kitco buys precious metals scrap and pays sales taxes to the suppliers on the purchases for which Kitco receives a tax credit. It is the responsibility of these suppliers to pay the sales taxes to Revenu Quebec. Revenu Quebec alleges that some of these suppliers have not remitted the taxes paid to them. Revenu Quebec is holding Kitco responsible for the unremitted taxes, which led to the issuance of the tax assessments.
Kitco filed a motion in the Superior Court of Quebec to have an interim receiver appointed so that it may continue its normal operations under the supervision of a third party.
Kitco offers current live as well as historical precious metals prices at www.Kitco.com and corresponding prices for base metals at www.KitcoMetals.com.