Manitoba Finance Taxation Special Investigations Unit, with assistance from the RCMP, has seized 300,000 contraband cigarettes brought into the province by a local transport company.
The seizure, which happened just outside Winnipeg June 8, resulted in the arrest of two men from Winnipeg and East St. Paul, aged 36 and 54.
Had these cigarettes been sold, the Manitoba government stood to lose $90,000 in tax revenue.
The two men will face charges under The Tobacco Tax Act and The Tax Administration and Miscellaneous Taxes Act. For a first-time offence under the provincial tax acts, the individuals face fines between $1,000 and $10,000 and/or up to six months imprisonment if convicted. In addition, they may face a triple tax penalty of $270,000. The accused will also face charges under the Criminal Code of Canada.
The province urges anyone who has information on contraband tobacco to contact their local police department, call the Manitoba Finance Special Investigations Unit at 204-945-1137 or call Manitoba CrimeStoppers (toll-free) at 1-800-222-TIPS(8477).
