KITCO fraud allegation.

Of course their innocent...........aren't all criminals................?

A press release really doesn't tell you much except that they are doing everything possible to polish their tarnished image. All big companies and corporations have spin doctors on hand just in case they are needed.

Regardless, I can almost guarantee no one will ever go to jail.

 

Log in or Sign up to hide this ad.

Is Bix Weir in a position to know what's going on inside Kitco?

 

unallocated gold at the Royal Canadian Mint?

https://rcmpa.kitco.com/KitcoRCMPA/Home?requestName=HomeAction&CommandName=GETRCMPOOLPRICE

Kitco's website seems to imply that you can buy unallocated gold and store it at the Royal Canadian Mint.

2 questions:

First, why do you need to store unallocated gold at the Royal Canadian Mint?

Second, if they under investigation for fraud why are they still allowed to even mention the Royal Canadian Mint on their website and imply it's business as usual.

A lot of things just don't make sense here.

 

I think I might have figured out what happened. (just a guess though of course)

In Canada, when you operate a business, you will pay tax on all goods you purchase like everyone else.

However..... if a business uses that item they purchased for producing what they are selling, they get refunded for the tax they paid.

BUT... what the Canadian government is probably not happy about is that when Kitco sells the finished product, they don't charge tax on bullion. (simply since gold is unique compared to other items that a business sells, since there is no tax charged on bullion.)

So, it sort of seems like one of those unintential loopholes.

So if it is NOT written into law that a company does not get a credit for any tax paid out unless you are charging tax on the end product, then Kitco was doing everything correctly.

The government won't be happy about this, but they were abiding by the law. However, if the law states you can only get a refund on taxes paid if you charge tax on the end product, then Kitco is in the wrong.

Bullion is probably one of the only things that doesn't get taxed in Canada so the written law may have missed this detail. So in this case, if the Canadian goverment is not happy with this, then they need to change the law, and the government cannot go after Kitco for back taxes.