Reply to Thread

Message:: [QUOTE="goldengirl, post: 1208980, member: 31737"]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.[/QUOTE]