MONTREAL, Dec. 9, 2013 /CNW Telbec/ - Contrary to the Agence du Revenu
du Québec's ("ARQ") allegations in a press release published today,
Kitco Metals Inc. ("Kitco") has never made false statements in a return
nor attempted to obtain a rebate to which it is not entitled. In all
respects, Kitco continues to vigorously contest all aspects of the
Bart Kitner, Kitco's president, believes that the ARQ's continuous
pursuit in this case is an abuse of their authority and has caused
substantial harm to Kitco's ongoing operations and development.
Evidence in a July 26, 2011 court document indicates that the ARQ
directed at least one witness to provide false testimony about Kitco,
or suffer consequences for refusing to give the false testimony.
(Cour Superieur - District de Montreal No. 500-17-038645-103 pg. 29).
This abuse of authority, along with other actions by the ARQ, has left
Kitco with no other choice than to file a damages claim against them.
On June 6th, 2012 Kitco filed suit against the ARQ seeking damages in
the order of $122 million in the Québec Superior Court. These damages
will escalate as a result of this most recent action taken by the ARQ.
Among Kitco's lines of business is the purchase of scrap precious
metals. Kitco pays the companies' sales taxes on these purchases and
receives tax credits for the corresponding amounts. It is then the
companies' responsibility to remit these taxes to the ARQ. Alleging
that some of these companies have not paid back the taxes owed to it,
the ARQ is unjustly holding Kitco responsible for these unremitted
Part of Kitco's internal due diligence process included advising the ARQ
about taxable gold transactions and seeking direction from the ARQ.
Starting in November 2005 Kitco sent detailed transaction reports to
the ARQ every month. Each report clearly stated Kitco's concerns about
the validity of tax remittances. In each monthly report to the ARQ
Kitco requested that they verify that taxes being paid to companies by
Kitco were being properly remitted to the ARQ. The ARQ did not respond
nor provide any advice or direction to Kitco despite having received
over 60 such reports over a 5-year period. If the ARQ had acted upon
the information in Kitco's reports in a timely manner, their tax losses
could have been prevented.
About Kitco Metals Inc.
A Canadian corporation originally founded in 1977, Kitco Metals Inc. is
an international company employing over 100 individuals in its Montreal
headquarters. With the bulk of its customers from outside of Canada,
Kitco is one of the world's most recognized retailers of precious
metals and a specialized supplier of refining services. Being one of
few authorized resellers of products made by some of the most
prestigious government mints, the company provides a vast array of
gold, silver, platinum, palladium and rhodium products to customers
worldwide. Considered to be the leading precious metals reference,
Kitco's website href="http://www.kitco.com">(www.kitco.com) is visited daily by close to a million people around the world. Kitco
has earned a solid reputation for itself as a leading innovator in the
industry, being the first precious metals company to carry out its
activities online and to create real-time market information, news,
analysis and applications for smart phones.
SOURCE: Kitco Inc.
For further information:
Marketing Director & Spokesperson