Kitco Shutting Down Operations?June 14th, 2011
Kitco has recently been accused of tax fraud. Accusations have pinpointed over 70 of their Canadian locations. Investigations began last week in Downtown Montreal, one of their hot spots for buying and selling gold. The fraud committed involved: “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.” Kitco is an alleged participant along with over 100 businesses that were involved.
Can Kitco come out of this alive? Their operations are still moving but by Kitco’s request are being supervised by the accounting firm RSM Richter. The statement made by the top silver and gold company contested to every charge, stating:
“Kitco Metals Inc. 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 Québec’s investigation.”
If Kitco goes under I will be in need of a new iPhone app to check my daily spot prices. Who’s up for the challenge? I know the Silver Coin App peeps have a nice Droid App to keep you in check on your junk silver and silver spot prices. Maybe they can step up and fill Kitco’s iPhone App shoes?