Contraband Tobacco: Buying and selling illegal tobacco is a crime in Canada. Contraband tobacco is a significant money-making enterprise for organized crime. It is estimated the Government of Canada loses about $1 billion in tax revenue each year due to illegal cigarette sales, while provinces lose millions in revenue. In Manitoba, $0.30 is lost per cigarette or $60.00 a carton. Each province and territory has its own laws dealing with trafficking. Depending on the jurisdiction, you could face fines, jail time or both if you buy, sell or possess illegal tobacco.
What is Contraband Tobacco? Contraband tobacco is tobacco that is not purchased, possessed, acquired, marked, stamped, transported, stored or sold in accordance with federal and proviincial legislation.
Contraband tobacco costs billions in lost tax revenue each year. The profits from illegal tobacco sales are often used to fund other serious organized criminal activities such as weapons and drug trafficking, according to the Government of Canada. The RCMP has identified about 175 criminal gangs involved in the trade; producing as many as 10,000 cigarettes a minute in 50 illegal factories operating in Canada. Gangs use the proceeds to fund their other illegal activities, including guns, drugs and human smuggling. Cigarette prices across the country vary but can cost as much as $178 per carton, it is reported. However, some illegal cigarettes can sell for as little as $35 per carton.
Not only does contraband tobacco threaten tax revenue that reduces support for such programs as healthcare and education. It also undermines efforts to reduce smoking rates, the government reports.
Illegal cigarettes are not regulated, may contain harmful ingredients and may lack the self-extinguishing features of legal brands.
Trafficking can involve the following actions:
Any tobacco product that has not had the appropriate Federal and Provincial taxes paid is illegal to sell or possess in Canada. This includes:
-Tobacco products that are legally manufactured in other countries but smuggled into Canada illegally
-Tobacco products that are illegally manufactured in other countries and smuggled into Canada
-Tobacco products that are illegally manufactured in Canada
-Tobacco products that are imitations or forgeries of real brands. They are most commonly referred to as counterfeit
-Tobacco products that are tax-exempt and designated for First Nations / Meti / Inuit (FNMI) communities but are sold to non- aboriginal people instead
Each province or territory has its own laws governing contraband cigarettes. In Manitoba, for example, you can be fined under the Tobacco Tax Act, the Tax Administration and Miscellaneous Taxes Act. First-time offenders under the act face fines between $1,000 and $10,000, up to six months in jail and a potential triple tax penalty. Subsequent offences can see individuals fined between $10,000 and $50,000 and up to 12 months in jail. Offenders also face suspension of their retail tobacco license for being involved in illegal tobacco activities.
How to identify legal tobacco
- An excise duty paid stamp which indicates that the Federal excise tax has been paid,
- A Health Canada warning label on the package. Cigarettes and little cigars will have a warning that covers75% of the package,
- A health warning printed on the filter of each individual cigarette.
What is Contraband Tobacco? Contraband tobacco is tobacco that is not purchased, possessed, acquired, marked, stamped, transported, stored or sold in accordance with federal and proviincial legislation.
Contraband tobacco costs billions in lost tax revenue each year. The profits from illegal tobacco sales are often used to fund other serious organized criminal activities such as weapons and drug trafficking, according to the Government of Canada. The RCMP has identified about 175 criminal gangs involved in the trade; producing as many as 10,000 cigarettes a minute in 50 illegal factories operating in Canada. Gangs use the proceeds to fund their other illegal activities, including guns, drugs and human smuggling. Cigarette prices across the country vary but can cost as much as $178 per carton, it is reported. However, some illegal cigarettes can sell for as little as $35 per carton.
Not only does contraband tobacco threaten tax revenue that reduces support for such programs as healthcare and education. It also undermines efforts to reduce smoking rates, the government reports.
Illegal cigarettes are not regulated, may contain harmful ingredients and may lack the self-extinguishing features of legal brands.
Trafficking can involve the following actions:
- sale;
- offer for sale;
- possession for the purpose of sale;
- transportation;
- distribution; or
- delivery.
Any tobacco product that has not had the appropriate Federal and Provincial taxes paid is illegal to sell or possess in Canada. This includes:
-Tobacco products that are legally manufactured in other countries but smuggled into Canada illegally
-Tobacco products that are illegally manufactured in other countries and smuggled into Canada
-Tobacco products that are illegally manufactured in Canada
-Tobacco products that are imitations or forgeries of real brands. They are most commonly referred to as counterfeit
-Tobacco products that are tax-exempt and designated for First Nations / Meti / Inuit (FNMI) communities but are sold to non- aboriginal people instead
Each province or territory has its own laws governing contraband cigarettes. In Manitoba, for example, you can be fined under the Tobacco Tax Act, the Tax Administration and Miscellaneous Taxes Act. First-time offenders under the act face fines between $1,000 and $10,000, up to six months in jail and a potential triple tax penalty. Subsequent offences can see individuals fined between $10,000 and $50,000 and up to 12 months in jail. Offenders also face suspension of their retail tobacco license for being involved in illegal tobacco activities.
How to identify legal tobacco
- An excise duty paid stamp which indicates that the Federal excise tax has been paid,
- A Health Canada warning label on the package. Cigarettes and little cigars will have a warning that covers75% of the package,
- A health warning printed on the filter of each individual cigarette.
How to identify Illegal tobacco
Illegal tobacco may not have one or all of the following:
- A Federal excise duty paid stamp,
- Health Canada warning labels on packaging in accordance with Health Canada regulations for labelling tobacco products,
- A Health warning printed on the filter of each individual cigarette,
- Branding or label printed on the filter of each individual cigarette,
- Normal packaging and may come in clear plastic bags similar to sandwich bags,
- A proper tax paid tear strip and/or duty stamp, but be packaged in a manner similar to authorized and authentic name brands (box and cellophane).
Just because you purchased it from a retail store does not mean they are legal. Many stores sell contraband tobacco.
Illegal tobacco may not have one or all of the following:
- A Federal excise duty paid stamp,
- Health Canada warning labels on packaging in accordance with Health Canada regulations for labelling tobacco products,
- A Health warning printed on the filter of each individual cigarette,
- Branding or label printed on the filter of each individual cigarette,
- Normal packaging and may come in clear plastic bags similar to sandwich bags,
- A proper tax paid tear strip and/or duty stamp, but be packaged in a manner similar to authorized and authentic name brands (box and cellophane).
Just because you purchased it from a retail store does not mean they are legal. Many stores sell contraband tobacco.
Crime Stoppers will pay up to $2000.00 in cash for any tips that lead to the seizure of contraband tobacco. If you know of any stores or individuals selling contraband tobacco. Submit your tip by calling 204-786-8477 (TIPS) or Submit your tip online using the button below. Tipster's never have to reveal their identity and you will remain anonymous!