Manitoba Finance’s Taxation Special Investigations Unit (SIU), along with the Ontario Provincial Police (OPP), completed a joint forces investigation of a Manitoba resident believed to be involved in smuggling illegal cigarettes.
The Winnipeg resident, 44-year-old Daniel Deschamps, was stopped and arrested by the OPP on Nov. 29, east of Thunder Bay for possession of illegal tobacco that he had recently purchased in Quebec. The accused was in the process of smuggling over 2.5 million cigarettes into Manitoba for the purpose of resale.
Deschamps was released by the OPP and faces charges in Ontario. He returned to Winnipeg.
The Manitoba SIU continued the investigation of the accused and on Dec. 2, the accused was observed leaving his residence, contrary to COVID-19 isolation/quarantine regulations presently in effect for individuals returning from Quebec, and was observed driving to various locations in Winnipeg.
He was arrested in possession of 220,000 illegal cigarettes. Subsequently search warrants were executed at two locations in Winnipeg and a further 650,000 illegal cigarettes were seized. These contraband cigarettes were in addition to the 2.5 million seized in Ontario.
The accused will face charges under the Manitoba Tobacco Tax Act, the Tax Administration and Miscellaneous Taxes Act and the Criminal Code of Canada. Manitoba stood to lose $261,000 in tax revenue if these cigarettes had been sold. If convicted, the individual faces fines between $1,000 and $10,000 and/or up to six months imprisonment. In addition, he faces a triple tax penalty of $783,000 and forfeiture of his motor vehicle.
The accused also faces charges for failing to isolate / quarantining under Manitoba COVID-19 restrictions.
The province urges anyone who has information on contraband tobacco to contact their local police department, call the SIU at 204-945-1137 or Manitoba CrimeStoppers (toll-free) at 1-800-222-TIPS (8477).
