I know of which my articles experience many readers found in North America — both from the particular USA and from Canada. Canada provides a very respectable image internationally (the Canadian government hardly ever stirs up difficulties outside its borders), and the Canadian banking system is admittedly much more stable compared to ALL OF US. Even the foreign currency has been carrying out well, backed inside part by Canada’s huge wealth regarding gold and additional natural resources.
You might think, next, that Canada would certainly be the best asset protection haven. In fact, we frequently receive questions from US People in america asking how to open bank accounts throughout Canada, or thinking that the Canadian dollars is a secure haven against collapse of the PEOPLE dollar. But people that think Canada is a good investment alternative to be able to US instability and systemic insecurity are usually seriously mistaken. The raid on Kitco the other day amply exhibited this, if it wasn’t already clear.
Considering how much money Nova scotia makes from valuable metals and mining companies, you would likely think they may respect the precious metal business. Indeed, it can no coincidence that will one of the world’s largest gold trading and study firms is Canadian – and it was this organization, Kitco, which was raided by authorities inside Quebec a week ago. Nearly every precious materials site out there links for the famous Kitco charts.
Corporate Tax Accountant Edmonton of acquire who has the gold investing blog site recently warned regarding how the government was searching to “regulate” platinum trading companies. Manage, he says, “is a code-word with regard to, take-over, destroy or perhaps monopolize. “
He previously been warning from this trend in typically the US, but he probably wasn’t astonished that Canada took the lead. A lot more than 175 Revenu Quebec agents conducted raids related to Kitco on homes, office buildings, accountancy firms in addition to bankruptcy trustees inside of the Montreal location. In other terms, Kitco was raided big-time by typically the equivalent from the RATES, and a court-appointed receiver is at this point controlling the company.
Kitco is not formally charged with anything. As my pal Jeff mentioned, “Kitco has been a highly respected and reputable gold and silver coins dealer for years canada and that is highly, highly unlikely that that they have done something improper. “
Typically the allegations, as I recognize them, apparently center on supposed florida sales tax evasion. Because discard gold is susceptible to tax but bars isn’t, allegedly Kitco was buying recycle gold, paying the particular sales tax to typically the sellers (local gem firms or small gold dealers) then legitimately reclaiming the sales tax paid out. Since Kitco has been selling bullion, these were not obliged to charge sales duty. Therefore they would certainly have been receiving large tax discounts on a standard basis – something governments obviously detest!
All this is certainly quite legal plus normal, but really possible that the sellers of the particular scrap gold basically disappeared, as opposed to handing over the florida sales tax to the authorities as they were supposed to be able to. This means that on the one hand the government are not obtaining the tax, however they were having to pay it to Kitco. In Europe this specific is called “missing trader fraud” or even “carousel fraud” and also reached crisis levels a partners of years ago on easily tradeable high value things like microchips, till governments had to bring in special regulations inside this regard (as a side be aware, readers might bear in mind how a closure regarding the Netherlands-Antilles centered bank First Curacao International Bank inside 2006 and typically the arrest of billionaire banker and lubricate trader John Duess seemed to be apparently lower to this type of scam. )
We would claim it is quite unlikely that Kitco were deliberately included in this, although they probably made the mistake associated with expecting the Canadian government to play by the measures. Once Kitco features paid the taxes and received a valid invoice, it’s in no way Kitco’s responsibility to ensure the third celebration actually pays the particular taxes due. Kitco didn’t design typically the system. Unfortunately, Revenu Quebec doesn’t seem to be to see it this way.
Basically, the particular raid is about teaching people a lesson. Those engaged in the rare metal business are not necessarily popular with governments. Those receiving taxes rebates are not really popular either. Plus the Canadian taxman has learned from the US about high profile, publicity seeking cases wherever you accuse initial, destroy somebody’s enterprise, then later look at the facts.