Manitoba Finance’s Taxation Special Investigations Unit has charged five people and suspended licences for three retail outlets after seizing illegal cigarettes.
Investigators say that the individuals facing charges were found selling contraband tobacco products not marked for Manitoba. They also located 3,600 cigarettes that had been stolen from a break-in at another location in the city.
Manitoba Finance says that the retail outlets that had their tobacco dealer’s licences suspended were all owned by the same people.
It is estimated that the province stood to lose more than $14,000 in tax revenue. The five individuals are facing charges under the Manitoba Tobacco Tax Act and the Administration and Miscellaneous Taxes Act.
If convicted fines range from $1,000 to $10,000 plus up to six months in jail. As well the accused are subject to a triple tax penalty of more than $43,000.
Winnipeg Police are also investigating regarding the recovery stolen cigarettes and more charges may be laid.