How long to pay off $800K in illegal cigarette fines? 32,000 months, a judge calculates

Nova Scotia provincial court Judge Alain Bégin highlighted the absurdity of a situation involving a 68-year-old man sentenced on contraband cigarette charges. The man, David Barrie, pleaded guilty to possessing unstamped tobacco after RCMP discovered 650,000 illegal cigarettes in a van he was driving near Truro, N.S., two years ago. The violations fell under the federal Excise Act and provincial Revenue Act, which mandated a minimum fine of $886,296.80 based on the number of cigarettes seized and tax evaded.

During the sentencing, Judge Bégin pointed out the impracticality of the fine amount given Barrie’s financial situation. Barrie, who is disabled, unemployed, and relies on an Old Age Security pension, would have to pay $25 a month towards his $800,000 bill. This calculation led to the realization that it would take 32,000 months for Barrie to fully pay off his fine.

Barrie’s lawyer, Jim O’Neil, expressed concern over the minimum fines set by federal and provincial legislation, which offer no flexibility for judges to consider an offender’s financial hardship. O’Neil shared a previous case involving a single mother where he attempted to challenge the fine based on poverty but found no legal grounds to do so in contraband tobacco charges.

O’Neil emphasized that many individuals involved in contraband tobacco are either addicted to tobacco or living in poverty, making it challenging for them to settle exorbitant fines. He criticized the disproportionate fines imposed on offenders compared to other wrongdoings in society.

Revenue from tobacco taxes has declined in Nova Scotia due to both decreased smoking rates and the rise in contraband sales. Barrie’s arrest in 2023, where he was caught as a courier transporting illegal cigarettes, exemplifies the ongoing issue of contraband sales impacting government revenues.

Despite being only a courier, Barrie faced severe penalties with no benefit from the sale of the cigarettes, prompting Judge Bégin to remark on the futility of taking such risks for nothing in return.

The case underscores the need for a more nuanced approach to imposing fines on individuals unable to pay, especially in situations involving contraband tobacco. The current system of rigid fines can perpetuate financial hardship for already vulnerable populations, highlighting the need for reform in how such cases are handled.