29.1 (1) In this section, “other tobacco” means tobacco products other than cigarettes, cigars and fine cut tobacco.  2004, c. 31, Sched. 36, s. 11; 2011, c. 15, s. 40. Possession of untaxed cigars and other tobacco (2) No person shall, unless permitted to do so under this Act or the regulations, have in his or her possession more than 50 cigars or more than one kilogram of other tobacco for which the person cannot prove that an amount equal to the tax that would be payable under section 2 by a consumer purchasing the same cigars or other tobacco has been paid to the person or entity from whom the cigars or other tobacco were obtained.  2011, c. 15, s. 40 (3). Same, possession for the purpose of resale (2.0.1) No person shall, unless permitted to do so under this Act or the regulations, have in his or her possession for the purposes of resale, or purchase or receive for the purposes of resale, any cigars or other tobacco for which the person cannot prove that an amount equal to the tax that would be payable under section 2 by a consumer purchasing the same cigars or other tobacco has been paid to the person or entity from whom the cigars or other tobacco were obtained.  2011, c. 15, s. 40 (3). Seizure of cigars or other tobacco (2.1) If a person authorized by the Minister has reasonable and probable grounds to believe that a person is in possession of cigars or other tobacco contrary to the provisions of subsection (2) or (2.0.1), the person may, subject to subsection (2.2), stop and detain the person and may seize, impound, hold and dispose of the cigars and other tobacco.  2008, c. 19, Sched. W, s. 9 (1); 2011, c. 15, s. 40 (4). Application (2.2) Cigars or other tobacco seized under subsection (2.1) are forfeited to Her Majesty to be disposed of as the Minister directs unless, within 30 days following the seizure, the person from whom the cigars or other tobacco were seized, or the owner of the cigars or other tobacco, applies to the Superior Court of Justice to establish a right to possession of the cigars or other tobacco.  2008, c. 19, Sched. W, s. 9 (1). Right to possession of cigars or other tobacco (2.3) For the purposes of an application under subsection (2.2), the applicant has a right to possession of the cigars or other tobacco if, at the time the seizure was made, (a)  Repealed: 2019, c. 15, Sched. 39, s. 5. (b)  the applicant was permitted under this Act or the regulations to have in his or her possession the cigars or other tobacco for which he or she cannot prove that the tax that would be payable under section 2 by a consumer purchasing the same cigars or other tobacco has been paid; or (c)  the applicant had paid the tax payable under section 2 on the cigars or other tobacco.  2008, c. 19, Sched. W, s. 9 (1); 2011, c. 15, s. 40 (5); 2019, c. 15, Sched. 39, s. 5. Disposal pending final determination of the court (2.4) If a final order under this section is not made not more than 60 days after the filing of the application under subsection (2.2), the Minister may dispose of the cigars or other tobacco and retain the proceeds, if any, pending the determination of the application.  2008, c. 19, Sched. W, s. 9 (1). Order (2.5) If the court is satisfied on an application under subsection (2.2) that the applicant has a right to possession of the cigars or other tobacco, the court may order that the cigars or other tobacco be returned to the applicant or that the proceeds of the sale of the cigars or other tobacco be paid to the applicant.  2008, c. 19, Sched. W, s. 9 (1). Forfeiture after dismissal of application (2.6) On dismissal of an application under subsection (2.2) and the expiry of the appeal period provided for it, the cigars or other tobacco are forfeited to Her Majesty to be disposed of as the Minister directs.  2008, c. 19, Sched. W, s. 9 (1). Proceeds of sale (2.7) If a sale of cigars or other tobacco is authorized under subsection (2.2) or (2.6), or if the proceeds of a sale are retained under subsection (2.4) and the application is dismissed, the proceeds of the sale remaining after payment of the costs incurred by the Minister in seizing, storing and disposing of the cigars or other tobacco shall be paid into the Consolidated Revenue Fund.  2008, c. 19, Sched. W, s. 9 (1). Offence, possession of untaxed cigars and other tobacco (3) Every person who contravenes subsection (2) and is found in possession of 200 or fewer cigars or 10 kilograms or less of other tobacco is guilty of an offence and on conviction is liable to, (a)  a fine of $1,000 and an additional fine of an amount equal to three times the tax that would be payable under section 2 by a consumer purchasing the same quantity of cigars or other tobacco that the person possessed in contravention of subsection (2); and (b)  a term of imprisonment of not more than two years, in addition to the fine and additional fine under clause (a), if it is not the person’s first conviction under this section.  2011, c. 15, s. 40 (6). Same, more than 200 cigars or more than 10 kilograms of other tobacco (4) Every person who contravenes subsection (2) and is found to be in possession of more than 200 cigars or more than 10 kilograms of other tobacco is guilty of an offence and on conviction is liable to, (a)  a fine of not less than $1,000 and not more than $50,000 and an additional fine of not less than an amount equal to three times the tax that would be payable under section 2 by a consumer purchasing the same quantity of cigars or other tobacco that the person possessed in contravention of subsection (2); and (b)  a term of imprisonment of not more than two years, in addition to the fine and additional fine under clause (a).  2011, c. 15, s. 40 (6). Offence, possession for the purpose of resale (4.1) Every person who contravenes subsection (2.0.1) is guilty of an offence and on conviction is liable to, (a)  a fine of not less than $1,000 and not more than $50,000 and an additional fine of not less than an amount equal to three times the tax that would be payable under section 2 by a consumer purchasing the same quantity of cigars or other tobacco that the person possessed in contravention of subsection (2.0.1); and (b)  a term of imprisonment of not more than two years, in addition to the fine and additional fine under clause (a), (i)  if the person was found to be in possession of 200 or more cigars or 10 kilograms or more of other tobacco, or (ii)  if it is not the person’s first conviction under this section.  2011, c. 15, s. 40 (6). Forfeiture (5) All cigars and other tobacco in respect of which a person is convicted of an offence under this section shall be forfeited to Her Majesty to be disposed of in any manner determined by the Minister.  2004, c. 31, Sched. 36, s. 11. Penalty, selling (6) Every person who, except as permitted under this Act or the regulations, sells or offers or keeps for sale in Ontario cigars or other tobacco for which the person cannot prove that an amount equal to the tax that would be payable under section 2 by a consumer purchasing the same quantity of cigars or other tobacco sold or offered or kept for sale has been paid to the person or entity from whom the cigars or other tobacco were obtained shall pay a penalty, when assessed for it, equal to the sum of, (a)  an amount equal to three times the tax that would be payable under section 2 by a consumer purchasing the same quantity of cigars or other tobacco sold, offered for sale or kept for sale in Ontario by the person; and (b)  the amount of, (i)  $500 if the person has not been previously assessed a penalty under this subsection or subsection (7) or under subsection 2 (7.1), 24 (12), 29 (19) or (20), 34 (2) or 34.0.1 (2), (ii)  $2,500 if the person has previously been assessed a penalty under this subsection or subsection (7) or under subsection 2 (7.1), 24 (12), 29 (19) or (20), 34 (2) or 34.0.1 (2), but has not been previously assessed more than one penalty in total under this subsection and those subsections, (iii)  $5,000 if the person has previously been assessed more than one penalty in total under this subsection or subsection (7) or under subsection 2 (7.1), 24 (12), 29 (19) or (20), 34 (2) or 34.0.1 (2).  2008, c. 19, Sched. W, s. 9 (2); 2011, c. 15, s. 40 (7-11); 2016, c. 37, Sched. 26, s. 7. Penalty, possession (7) Every person who possesses cigars or other tobacco in contravention of subsection (2) or (2.0.1) shall pay a penalty, when assessed for it, equal to the amount determined under subsection (7.1).  2011, c. 15, s. 40 (12). Same (7.1) The amount of the penalty under subsection (7) is the sum of, (a)  an amount equal to three times the tax that would be payable under section 2 by a consumer purchasing the same quantity of cigars or other tobacco for which the person is assessed a penalty under subsection (7); and (b)  the amount of, (i)  $500 if the person has not been previously assessed a penalty under subsection (6) or (7) or under subsection 2 (7.1), 24 (12), 29 (19) or (20), 34 (2) or 34.0.1 (2), (ii)  $2,500 if the person has previously been assessed a penalty under subsection (6) or (7) or under subsection 2 (7.1), 24 (12), 29 (19) or (20), 34 (2) or 34.0.1 (2), but has not been previously assessed more than one penalty in total under this subsection and those subsections, (iii)  $5,000 if the person has previously been assessed more than one penalty in total under subsection (6) or (7) or under subsection 2 (7.1), 24 (12), 29 (19) or (20), 34 (2) or 34.0.1 (2).  2008, c. 19, Sched. W, s. 9 (2); 2011, c. 15, s. 40 (13-16). Additional penalty (8) If the amount of cigars referred to in subsection (6) or (7) is 200 or more or the amount of other tobacco referred to in subsection (6) or (7) is 10 kilograms or more, a person liable to a penalty under that subsection may also be assessed an additional penalty equal to five times the amount of the tax that would be payable under section 2 by a consumer purchasing the same quantity of cigars or other tobacco for which the person is assessed a penalty under subsection (6) or (7).  2011, c. 15, s. 40 (17). Section Amendments with date in force (d/m/y) 2004, c. 31, Sched. 36, s. 11 - 16/12/2004 2008, c. 19, Sched. W, s. 9 (1, 2) - 27/11/2008 2009, c. 18, Sched. 30, s. 5 - 05/06/2009 2011, c. 15, s. 40 (1, 3-8, 12, 13, 17) - 01/06/2011; 2011, c. 15, s. 40 (2, 9-11, 14-16) - 01/04/2013 2016, c. 37, Sched. 26, s. 7 - 08/12/2016 2019, c. 15, Sched. 39, s. 5 - 10/12/2019