Some interesting details from a Financial Post articles today:

It is alleged that 125 companies engaged in a tax fraud scheme on sales transactions worth $1.8 billion

The six-step scheme is based on a repetitive cycle of processing pure gold into scrap gold which is in turn sent to a refiner to be transformed once again into pure gold

Bogus transactions are made in order to claim input tax refunds

No actual commercial activity ever takes place

The scheme expands using the amounts received by the government

Kitco says it has never participated in any tax fraud

The company wants to appoint an interim receiver "to help it deal with the allegations and negotiate a tax assessment amount that is outstanding."

Kitco claims that its suppliers should have been paying taxes in amounts for which Kitco received tax credits. Kitco says it can't be responsible for taxes not paid by those suppliers

Carmen and Kitco are the first two companies named along with five individuals

Any people found guilty must pay the tax evaded plus interest and penalties

They also face fines and a maximum prison term of five years

Comment:

When I read this I found it confusing that Kitco claims it has never participated in a tax fraud but wants to negotiate an amount that is outstanding. Seems to be an inconsistency there.