Budget Measures Act (Fall), 2004: Enhanced Regulatory and Enforcement Provisions under the Tobacco Tax Act
Bulletin
TT 7-2004
Published: March 2005
Content last reviewed: September 2009
ISBN:
0-7794-7233-0 (Print), 0-7794-7234-9 (PDF)
Highlights of Amendments
- Expanded provisions for the seizure and disposal of unmarked cigarettes possessed in contravention of the Tobacco Tax Act (the Act).
- New offence and assessed civil penalty provisions for delivering or causing delivery of unmarked cigarettes to unauthorized persons or where intended for sale to persons liable to pay tobacco tax in Ontario.
- New offence and assessed civil penalty provisions for possession of more than 50 cigars or more than one kilogram of other tobacco* unless the person has proof that tobacco tax has been paid. In addition, up to two years in jail is proposed for possession of more than 200 cigars or 10 kilograms of other tobacco unless the person has proof that tobacco tax has been paid.
- An assessed civil penalty for selling, keeping, or offering for sale, cigars or other tobacco without proof that tobacco tax has been accounted for.
- The tables included summarize the enhancements made to the regulatory and enforcement provisions of the Tobacco Tax Act (the Act).
- The amendments were passed by the Legislature and received Royal Assent to become law on December 16, 2004 (c. 31, S.O. 2004).
The information in this bulletin does not replace the law found in the Act and related regulations.
* In this bulletin "other tobacco" means tobacco other than cigarettes and cigars.
Seizure of Unmarked Cigarettes - amendments
Inspection of Wholesale and Retail Premises
Unmarked cigarettes possessed for the purpose of sale by unauthorized persons may be seized and forfeited, subject to a right to establish lawful possession by application to the Superior Court of Justice.
Detention and Search of a Vehicle or Trailer, etc.
Tobacco found during detention of a vehicle, trailer, railway equipment or aircraft suspected of containing evidence of a contravention of the Act is subject to seizure and forfeiture if more than 200 unmarked cigarettes are found in control of a person not authorized to deal in, possess, or transport unmarked cigarettes.
Sale of Unmarked Cigarettes
Unmarked cigarettes sold or kept for sale in contravention of the Act are subject to seizure and forfeiture.
Delivery of Unmarked Cigarettes
Prohibited Except Between Authorized Persons
A new offence and assessed civil penalty is provided where unmarked cigarettes are delivered or caused to be delivered to persons not authorized to deal in unmarked cigarettes, or when intended for sale to consumers liable to pay tobacco tax.
New Offences and Fines
The following charts provide summaries of further enhancements to the regulatory and enforcement provisions of the Act.
| Offence | Fine upon Conviction |
|---|---|
| Deliver, or cause to be delivered, unmarked cigarettes to a person liable to collect or pay tax | minimum - $1000 plus not less than three times the tax maximum - $10,000, plus not less than three times the tax |
| Possess more than 50 cigars or 1 kg of other tobacco - no proof that tax was paid | minimum - $500 plus not less than three times the tax maximum - $10,000, plus not less than three times the tax |
| Possess 200 or more cigars or 10 kg or more of other tobacco - no proof that tax was paid | minimum - $500 plus not less than three times the tax maximum - $10,000, plus not less than three times the tax, plus up to two years in jail |
New Administrative (Civil) Penalties
| Contravention | Civil Penalty Assessed |
|---|---|
| Deliver, or cause to be delivered, unmarked cigarettes to a person liable to collect or pay tax | an amount equal to the tax |
| Wholesaler or retailer unlawfully possess unmarked cigarettes for the purpose of sale | forfeiture of the unmarked cigarettes and a penalty ranging from three to eight times the tax |
| During detention of a vehicle, etc., more than 200 unmarked cigarettes found in control of a person not authorized | forfeiture of all tobacco found and a penalty of three times the tax |
| Person possess unmarked cigarettes for the purpose of sale | forfeiture of the unmarked cigarettes and a penalty ranging from three to eight times the tax. |
| Sell or offer or keep for sale cigars or other tobacco - no proof that tax was paid | three times the tax |
| Possess, receive or purchase for purpose of sale, cigars or other tobacco - no proof that tax was paid | three times the tax |
| Possess more than 50 cigars or 1 kg of other tobacco - no proof that tax was paid | three times the tax |
| Possess 200 or more cigars or 10 kg or more of other tobacco - no proof that tax was paid | eight times the tax |
Other Changes
Investigative Technique, Procedure or Test
Authorizing the use, without warrant, during detention of a motor vehicle, etc., suspected of containing evidence of a contravention of the Act, of any necessary investigative technique, test or procedure to determine whether cigarettes found are properly marked.
A justice granting a search warrant under the Provincial Offences Act may authorize the use of an investigative technique, procedure or test to obtain evidence of an offence.
Production Orders
Upon application without notice, a justice may order that any person, other than a person under investigation, be required to produce for inspection documents (including electronic records) relevant to the investigation.
Additional Information
If this bulletin does not completely address your particular situation, refer to the Tobacco Tax Act and related regulations, or contact the:
Ministry of Finance
Client Accounts and Services Branch
Tobacco Tax Program
33 King Street West
PO Box 625
Oshawa ON L1H 8H9
- Toll-free: 1 866 ONT-TAXS (1 866 668-8297)
- Fax: 905 433-5680
- Teletypewriter (TTY): 1 800 263-7776
This bulletin and various other English and French tax materials published by the Ministry of Finance, may be obtained online at ontario.ca/finance.
The Tobacco Tax Act and Ontario's other statutes and regulations may be obtained online at ontario.ca/e-laws.
