A few years ago I got a call from revenue Canada, investigative unit. Almost falling off my chair wondering what have I done, life suddenly seemed dark.

After a short introduction they asked if I could provide them with some info helping them understand the gold business. I said I am not really an expert on gold(this was before my KXL time), but sure you are welcome to come and see me.

A week later 2 of them show up(good guy - bad guy) and they admit they are investigating some GST claims related to recycling of gold. Apparently you get some GST credit doing that sort of thing. The problem for them was that the amount of gold being recycled was way too huge to be real, so they thought the whole thing was made up just to claim GST credits, plus there was shell companies, apparently driving from Montreal to Toronto in private cars with millions in gold bars, etc.

I basically found what they needed from various websites as well as from some connections in the gold business. For 'privacy' reasons they did not want to contact the gold companies themselves. I don't know how their investigation went, but it was interesting to experience how the tax man may proceed when he is after you, but also how innovative people can get when there is money to be had.

I remembered this when seeing the discussion on this forum about gold jewellery versus investment demand etc. I think the tax man should have asked some of you and not me. The bottom line that I was too scared to ask for a consulting fee and they never took me out for lunch either.