Big tobacco to pay record fines after guilty plea
Posted on 31 July 2008 by Jack
Two of Canada’s biggest tobacco companies will pay record-setting fines after pleading guilty to tax charges laid in connection with contraband cigarettes.
Imperial Tobacco Canada Limited and Rothmans Benson and Hedges pleaded guilty to “aiding persons to sell and be in possession of tobacco manufactured in Canada that was not packed and was not stamped in conformity with the Excise Act.”
Imperial Tobacco will pay $200 million in fines and Benson and Hedges was fined $100 million.
“Based on our estimates, by (the companies) paying these fines, they will not be making any profits out of the (illicit) activities they had in the past,” Revenue Minister Gordon O’Connor said at a press conference held in Ottawa on Thursday.
The companies have also committed to help combat contraband tobacco activities in Canada.
“The result we’ve seen today brings to a close a significant chapter in contraband tobacco history,” RCMP Assistant Commissioner Mike Cabana said in a press release.
“The message sent today is that no company is above the law.”
Popularity: 16% [?]
July 31st, 2008 at 2:36 pm
Can’t be too much of a record fine,the stock is up 14% on the day!
July 31st, 2008 at 3:49 pm
Ah, another victory against the 3 Canadian sins … gas, smoking, and alcohol.
Can you blame the cigarette manufactures from trying to stay in business? …
* the tax is completly out of proportion.
* the competition (200 cigarettes for $20) doesn’t have to worry about paying those pesky worker benefits, or even a business tax.
“The message sent today is that no COMPANY is above the law.” … although the law assists their competition.
“The companies have also committed to help combat contraband tobacco activities in Canada.”
So, who’s it going to be … Hell’s Angels or Blackwater International?
July 31st, 2008 at 6:50 pm
Its too bad the RCMP didnt go after the company executives involved with this caper.
July 31st, 2008 at 8:47 pm
This should solve the so called deficit for a while.
August 1st, 2008 at 12:30 pm
gee lindsay when did gas replace sex, smoking and alcohol ? what am i missing here….
August 1st, 2008 at 11:32 pm
Sex was on “The List of the Bad Three”? I guess sex got dropped when abortions were OK’d (58.5K so far this year). Haven’t you noticed the Rainbow parades? Gas was dropped for a while after the catalytic converter propaganda “won” and replaced NOx emissions for lower gas mileage and benign CO2. I have no idea why it’s back - unless it’s another Uncle Mo attempt to get us to commit financial suicide. Hmmm… where’s my tin foil hat?