Cigarettes and fine cut tobacco that are not stamped as described are illegal. Legitimate tobacco has tobacco tax included in the price.
Violations and Fines
Tobacco products that are not properly marked may be seized and forfeited.
It is an offence for you to have more than 1,000 cigarettes or tobacco sticks, more than 1,000 grams of fine cut tobacco, cigars containing more than 1,000 grams of tobacco or any combination containing more than 1,000 grams of tobacco unless you:
- have a permit; or
- are a licensed wholesaler, licensed importer, retailer or marking permit holder or are holding the tobacco on behalf of any of them.
The general penalty for committing an offence under The Tobacco Tax Act, 1998 is, in the case of an individual, a fine of up to $10,000, two years imprisonment, or both. A corporation is subject to a fine of up to $50,000 and any corporate officers or directors who participated in an offence by the corporation are also liable to be prosecuted. In addition, the convicting judge is required to impose an additional fine equal to two times the amount of any tax evaded.
The Tobacco Tax Act, 1998 includes a provision which prohibits persons from purchasing, possessing, storing or selling tobacco products in Saskatchewan that are marked for sale in another jurisdiction. This provision does not apply to the personal exemption limit for tobacco imports or where the Saskatchewan tax has been accounted for prior to bringing the tobacco into the province and arrangements have been made with Finance to obtain the proper markings.
Finance works closely with Canada Revenue Agency, Health Canada, tax administrators in other provinces, the RCMP and other enforcement agencies to detect and curb tobacco smuggling. The tobacco marking program is an important enforcement measure in this regard
Revenue investigators visit retailers and inspect the premises for unstamped cigarettes and compliance with the legislation. Given reasonable grounds, enforcement officers may also, without a warrant, detain and examine the content of vehicles. If the person fails to produce required documentation, tobacco may be seized, impounded, held and disposed of. Revenue investigators can lay charges under the Summary Offences and Procedures Act.