Revenue Quebec Investigates Widespread Gold Fraud

THE CANADIAN PRESS -- A Montreal company being investigated by Revenue Quebec as part of an alleged gold-refining tax scam denies any wrongdoing.

More than 175 Revenue Canada agents conducted raids Thursday on residences, offices, accountants and bankruptcy trustees in the Montreal area.

The agency says the scam allegedly involved a system of repetitive and false billing in the transactions involving more than 100 companies.

It also says false tax returns were prepared for certain companies that provided the fake invoices.

One company under investigation is Kitco Metals Inc.

It issued a statement early today saying it has never participated in any tax fraud, nor has it ever carried out any fictitious transactions.

Kitco said it vigorously contests the allegations and has mandated a law firm to evaluate all available recourses.

Kitco said it is also seeking to have an interim receiver appointed so it can continue operations under the supervision of an accounting firm.

The company says this action was taken to allow for the time required to vigorously contest Revenue Quebec’s ”unfounded claims.”

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.