31 (1) Every person who sells or delivers a tobacco product in Ontario for resale without holding a subsisting wholesaler’s permit under section 3 shall, when assessed for it, pay a penalty of not less than $1,000 and not more than $10,000 and an additional penalty calculated as follows: 1.  If the tobacco product is unmarked cigarettes, an amount equal to three times the tax that would be payable under section 2 by a consumer purchasing the same quantity of cigarettes that were sold or delivered by the person for resale without holding a subsisting wholesaler’s permit. 2.  If the tobacco product is marked cigarettes, an amount equal to $25 for each 200 cigarettes sold or delivered by the person for resale without holding a subsisting wholesaler’s permit. 3.  If the tobacco product is unmarked fine cut tobacco, an amount equal to three times the tax that would be payable under section 2 by a consumer purchasing the same amount of fine cut tobacco that was sold or delivered by the person for resale without holding a subsisting wholesaler’s permit. 4.  If the tobacco product is marked fine cut tobacco, an amount equal to $25 for each 200 grams of fine cut tobacco sold or delivered by the person for resale without holding a subsisting wholesaler’s permit. 5.  If the tobacco product is cigars, for every cigar, an amount equal to 170 per cent of the price at which the cigar was sold. 6.  If the tobacco product is not cigarettes, fine cut tobacco or cigars, an amount equal to three times the tax that would be payable under section 2 by a consumer purchasing the same quantity of tobacco products that were sold or delivered by the person for resale without holding a subsisting wholesaler’s permit. 2011, c. 15, s. 41 (1); 2014, c. 7, Sched. 31, s. 3 (1). Offence (2) Every person who sells or delivers a tobacco product in Ontario for resale without holding a wholesaler’s permit issued under section 3 is guilty of an offence and is liable to the following on conviction: 1.  If the tobacco is unmarked cigarettes, i.  a fine of not less than $500 and not more than $10,000 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 cigarettes that were sold or delivered by the person for resale in Ontario without holding a wholesaler’s permit, and ii.  a term of imprisonment of not more than two years, in addition to the fine and additional fine under subparagraph i, if, A.  the person was found to be in possession of 10,000 or more unmarked cigarettes, or B.  it is not the person’s first conviction under this subsection. 2.  If the tobacco is marked cigarettes, i.  a fine of $25 for each 200 cigarettes, and ii.  a term of imprisonment of not more than two years, in addition to the fine under subparagraph i, if this is not the person’s first conviction under this subsection. 3.  If the tobacco is unmarked fine cut tobacco, i.  a fine of not less than $500 and not more than $10,000 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 fine cut tobacco that was sold or delivered by the person for resale in Ontario without holding a wholesaler’s permit, and ii.  a term of imprisonment of not more than two years, in addition to the fine and additional fine under subparagraph i, A.  if the person was found to be in possession of 10 kilograms or more of unmarked fine cut tobacco, or B.  if it is not the person’s first conviction under this subsection. 4.  If the tobacco is marked fine cut tobacco, i.  a fine of $25 for each 200 grams of marked fine cut tobacco, and ii.  a term of imprisonment of not more than two years, in addition to the fine under subparagraph i, if it is not the person’s first conviction under this subsection. 5.  If the tobacco is not cigarettes or fine cut tobacco, i.  a fine of not less than $1,000 and not more than $50,000, and ii.  a term of imprisonment of not more than two years, in addition to the fine under subparagraph i, A.  if the person was found to be in possession of 200 or more cigars or 10 kilograms or more of other tobacco products, or B.  if it is not the person’s first conviction under this subsection. 2009, c. 18, Sched. 30, s. 6; 2011, c. 15, s. 41 (2-4); 2014, c. 7, Sched. 31, s. 3 (2, 3). (2.1) Repealed:  2009, c. 18, Sched. 30, s. 6. Forfeiture (3) Every tobacco product in respect of which a person is convicted of an offence under subsection (2) shall be forfeited to Her Majesty to be disposed of in any manner determined by the Minister, to the extent that it has not been forfeited or disposed of under another provision of this Act.  2004, c. 31, Sched. 36, s. 12; 2011, c. 15, s. 41 (5). (4) Repealed:  2004, c. 31, Sched. 36, s. 12. Section Amendments with date in force (d/m/y) 1998, c. 34, s. 109 - 18/12/1998 2000, c. 42, s. 112 (1, 2) - 21/12/2000 2004, c. 7, s. 32 (1, 2)
- 17/06/2004; 2004, c. 31, Sched. 36, s. 12 - 16/12/2004 2006, c. 33, Sched. Z.9, s. 9 (1-3) - 20/12/2006 2009, c. 18, Sched. 30, s. 6 - 05/06/2009 2011, c. 15, s. 41 (1-3, 5) - 01/06/2011; 2011, c. 15, s. 41 (4) - 01/04/2013 2014, c. 7, Sched. 31, s. 3 (1-3) - 24/07/2014