Kitco, the Montreal-based gold news outlet and bullion trader, is among 12 companies being investigated by Quebec’s tax department for tax fraud.
The Financial Post reported earlier this month that Revenu-Québec is seeking prison sentences and fines totalling $750 million for Kitco Metals Inc. founder Bart Kitner and directors, along with other gold trading firms, following one of the biggest tax fraud investigations in provincial history.
As quoted in the market news:
Quebec’s revenue department on [December 9] said it filed a total of 1,920 charges against Kitco and 11 other companies as well as their directors and an accountant implicated in the alleged fraud scheme linked to gold processing. Some 120 charges were filed against Kitco and another 120 against Mr. Kitner involving fines of $454.6 million.
The ministry claims Kitco specifically made false statements and tried to obtain tax rebates to which it wasn’t entitled. The amount related to Kitco was not made public.
Kitco forcefully denies the allegations. The company last year filed a lawsuit against Revenu-Québec seeking $122-million in damages caused to the company and on [December 9], it said its legal action against the department will escalate as a result of the formal charges.