Following investigations into the sale of contraband cigarettes, members of the Manitoba Finance Taxation Special Investigations Unit have seized cash and 60,060 contraband cigarettes from two Winnipeg businesses and one individual.
On March 25, investigators executed search warrants at the Variety Taste Restaurant at 613 Sargent Ave. in Winnipeg, an associated vehicle and a near-by residence. The Winnipeg Police Service assisted with searches.
Seized from the store were 38 cartons of various brands of cigarettes (7,600 cigarettes) that were not marked for tax purposes in Manitoba. Also seized was $1,345 in cash.
As a result, one adult male faces charges under the Manitoba Tobacco Tax Act and the Tax Administration and Miscellaneous Taxes Act including possession of non-Manitoba marked tobacco, the sale of non-Manitoba marked cigarettes and wilful evasion of paying Manitoba tobacco tax.
Manitoba stood to lose $2,204 in tax revenue if these cigarettes had been sold. If convicted, the individual will face a mandatory tax penalty of $6,612 on the possession charge.
On April 17, a search warrant was executed at the Maw and Paw Collectables store at 583 Selkirk Ave. in Winnipeg. This search yielded 112.3 cartons of cigarettes (22,460 cigarettes) not marked for tax purposes in Manitoba, along with $4,766.90 in cash.
As a result, two adult males face charges under the Manitoba Tobacco Tax Act and the Tax Administration and Miscellaneous Taxes Act including possession of non-Manitoba marked tobacco, several charges each of the sale of non-Manitoba marked cigarettes and wilful evasion of paying Manitoba tobacco tax.
Manitoba stood to lose $6,513.40 in tax revenue if these cigarettes had been sold. A mandatory tax penalty of $19,540.20 will apply if the individuals are convicted on the possession charge.
On March 5, a 66-year old man from Winnipeg was stopped driving westbound on the Trans-Canada Highway in the Falcon Lake area and was found in possession of 150 cartons of cigarettes (30,000 cigarettes) that did not bear tax markings for Manitoba. In addition, 100 of the cartons did not carry tax markings for Canada.
As a result, the individual faces charges under the Manitoba Tobacco Tax Act and the Tax Administration and Miscellaneous Taxes Act including possession of non-Manitoba marked tobacco and willful evasion of paying Manitoba tobacco tax.
Manitoba stood to lose $8,700 in tax revenue if these cigarettes had been sold. A mandatory tax penalty of $26,100 will apply if the individual is convicted of the possession charge.
All individuals will be appearing in court in the near future.
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, email smuggling_manitoba@rcmp-grc.gc.ca or call Manitoba Crime Stoppers (toll-free) at 1-800 -222- TIPS (8477).
