Kitco Denies Tax Fraud Charges, Receivership Approved

In a statement released yesterday, Kitco Metals, Inc. categorically denies all of Revenu Québec’s allegations that they are guilty of evading sales tax due on their purchases of precious metal scrap.
The tax agency, Revenu Québec, has launched a massive investigation which is reported to involve 175 investigators utilizing 70 search warrants to scrutinize the activities of more than 125 companies including Kitco Metals, Incorporated. The “tax scheme” being investigated has reportedly cost the government of Québec more than $150 million in revenue.

The precious metals refining and retailing firm, Kitco, goes on to indicate that the company

“…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 Revenu Québec. Revenu Québec alleges that some of these suppliers have not remitted the taxes paid to them. Revenu Québec is unjustly holding Kitco responsible for the unremitted taxes, which led to the issuance of the tax assessments.”

According to Kitco spokesperson, Sharlene Dozois, Kitco received approval today of their request for an interim receiver which they filed yesterday with the Superior Court of Québec “…so that it may continue its normal operations…”.
“It’s business as usual.” Ms. Dozois stated by phone this morning. She went on to clarify that there will be no disturbance to the company’s settlements or any other customer or associate relations.