Countering Contraband:
the 2nd Bi-National Conference on
the Illicit Tobacco Trade
Presentation by
André-J. Santerre, Attorney
Direction principale des lois sur les taxes et
l’administration fiscale et des affaires autochtones
Revenu Québec
February 2011 - Toronto
1
Recent Initiatives to Counter Tobacco
Smuggling

Bill 59

Assented to on November 19, 2009

Act to amend the Tobacco Tax Act and other
legislative provisions primarily to counter tobacco
smuggling

(2009, chapter 47)
2
Recent Initiatives to Counter
Tobacco Smuggling
1.
Moratorium on the issue of manufacturer’s permits
2.
New conditions for the issue of permits
3.
New control measures for tobacco manufacturing
equipment
4.
New fiscal penalties
5.
Partnerships with municipalities
6.
Suspension of drivers’ licences
3
Moratorium on the Issue of
Manufacturer’s Permits

Moratorium in effect since October 28, 2009

For an unspecified period

No permits issued by Revenu Québec

Applies only to permits for the manufacture of
tobacco products
4
New Conditions for the Issue of Permits

New discretionary powers granted to the
Minister of Revenue of Québec

Conditions for the issue of permits include
the obligation to:
• provide certain documents
• sign an agreement
• provide security
5
New Control Measures for Tobacco
Manufacturing Equipment

New requirements for persons in possession of
tobacco manufacturing equipment

Such persons are required to
•
hold a manufacturer’s permit
•
keep a register of the origin and destination
of tobacco manufacturing equipment
6
New Fiscal Penalties

Additional fiscal penalties
•
•

Allow wrongful conduct to be penalized without having to
go to court
Penalties ranging from 3 to 5 times the amount of tobacco
tax
Examples of offences
•
•
•
•
Manufacturing tobacco products without a permit
Purchasing tobacco from a person who does not hold a
permit
Selling tobacco in an unidentified package
Transportation or storage of raw tobacco without a permit
7
Partnerships with Municipalities

New powers granted to municipalities

Power to institute penal proceedings



before municipal courts
for offences involving consumers of contraband
tobacco
Municipalities can keep the fines and costs
collected relating to offences committed on
their territory.
8
Thank you for your
attention.
Questions?
9