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· JTI-Macdonald
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Jump to full article: halifaxlive (ca), 2005-06-28
Author: NS Government News Release
Intro: The province of Nova Scotia has filed a legal claim against tobacco manufacturer JTI-Macdonald Corporation (JTI) to recover $326 million in taxes given up when taxes were reduced to prevent smuggling in the early 1990s.
A notice of Crown claim was filed Friday, June 24, with Ernst and Young in Toronto, the court-appointed monitor who will evaluate the claims for JTI under provisions of the Companies and Creditors Arrangement Act, a form of bankruptcy protection.
"We reduced taxes to try and curb smuggling in 1994 and gave up hundreds of millions of dollars of revenue as a result," said Finance Minister Peter Christie. "Since JTI Macdonald profited from its participation in a smuggling scheme, we believe they should cover the cost picked up by Nova Scotians."
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