Canada Sues Tobacco Companies for Cigarette Smuggling

On August 13, 2003, the Canadian government announced it was suing R.J. Reynolds Tobacco Holdings Inc. and Japan Tobacco Inc. for $1.5 billion Canadian dollars for alleged cigarette smuggling. The Canadian government alleges that the defendants smuggled cigarettes into Canada to gain illicit profits and evade taxes on their products, thereby depriving the Canadian government of substantial revenue.