The Special Investigations Unit (SIU) of Manitoba Finance’s Compliance and Enforcement Division, with assistance from the Quebec Provincial Police Contraband Investigation Service, Ontario Provincial Police and Winnipeg Police Service, concluded a lengthy investigation of individuals involved in the smuggling of illegal cigarettes into Manitoba.
The conclusion of ‘Project Shrek’ resulted in the largest seizure from a single individual with over three million cigarettes seized. Also seized from the individual were more than $3,000 in cash, a personal truck and a utility trailer. There were smaller quantities of cigarettes seized from other individuals. In total, 3,426,145 contraband cigarettes were confiscated.
As a result, six adults face a variety of charges under the Tobacco Tax Act, the Tax Administration and Miscellaneous Taxes Act and the Criminal Code.
The cigarettes confiscated represent $1,027,844 in tobacco tax revenue to the province and $4,063,803 in financial tax penalties upon conviction.
For a first-time offence under the tax acts, individuals face fines between $1,000 and $10,000 and/or up to six months imprisonment, as well as a potential triple tax penalty. For subsequent offences, individuals face fines of between $10,000 and $50,000 and/or up to 12 months imprisonment, as well as a potential quadruple tax penalty. Offenders also face retail tobacco licence suspensions.
Winnipeg-based stores facing charges and suspension of retail tobacco licences include:
- Royal Supermarket, 689 Wellington Ave.;
- Honey Convenience Store, Unit 5 – 353 Provencher Blvd.; and
- Muncheez on Dufferin, 325 Dufferin Ave.
The smuggling and sale of illegal cigarettes are not only a tax loss to Manitobans, but pose increased health and fire hazards. Illegal cigarettes are unregulated, may contain harmful ingredients, and lack self-extinguishing features of legal brands.
The province urges anyone with information on contraband tobacco to call local police or submit tips to the Manitoba Finance Special Investigations Unit at 204-945-1137, or contact Manitoba CrimeStoppers (toll-free) at 1-800-222-TIPS (8477).
