Russell Kennedy Senior Associate Marcus Health's presentation covers illicit tobacco investigations and prosecutions for Local Government.

1. Illicit tobacco investigations
and prosecutions
Local government seminar
Friday, 16 September 2016

2. > This seminar will provide an overview of:
> the role of local government in
investigating and successfully prosecuting
persons who carry on a tobacco retailing
business or tobacco wholesaling business
involving contraband tobacco products;
and
> the role of the Australian Border Force
Welcome
2

3. The legislative framework
Marcus Heath, Senior Associate, Russell Kennedy Lawyers

4. > The Tobacco Act 1987.
> What is illicit tobacco?
> What role do EHOs have?
> Investigations and prosecutions.
Overview
4

5. > Restrictive legislation.
> Reaction to the adverse health effects
of tobacco use.
> Protect and promote public health.
Tobacco Act 1987
5

6. > Tobacco Act 1987 – s. 11A
> A person
> who carries on a tobacco retailing business or a tobacco
wholesaling business
> must not, without reasonable excuse
> have in the person’s possession or under the person’s control,
> any tobacco products that the person knows or ought reasonably
to know;
> are smuggled goods or prohibited imports within the meaning of
the Customs Act 1901 (Cth);
> OR are excisable goods within the meaning of the Excise Act
1901 (Cth) upon which excise duty has not been paid.
> Penalty: 240 penalty units for an individual ($37,310.40) or 1200
penalty units for a corporation ($186,552)
What is illicit tobacco?
6

7. > Excise as at 1 September 2016 in stick form not
exceeding 0.8g tobacco content per stick =
$0.61054 per stick; otherwise $763.20 per kilogram
of tobacco content.
(Source: Australian Taxation Office <https://www.ato.gov.au/business/excise-and-excise-
equivalent-goods/tobacco-excise/excise-rates-for-tobacco>)
> “Tobacco retailing business” and “tobacco
wholesaling business” defined in section 3 of the
Tobacco Act 1987.
> Note other ancillary offences – such as s. 8 free
samples, s. 12 selling tobacco to a person under 18
years, s. 14 selling cigarettes in packs of less than
20.
What is illicit tobacco?
7

8. > Section 3 definition of “inspector” means a
person
> “who is an environmental health officer
appointed under section 29 of the Public
Health and Wellbeing Act 2008”
> Investigate suspected cases of illegal
tobacco sales.
> Power to issue infringement notices (s. 38)
or bring proceedings for an offence (s. 39).
What role do EHOs have?
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9. Successful prosecution
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Source: Herald Sun, 21 November 2015

10. 10
Marcus Heath
Senior Associate
Telephone: (03) 8602 7234
Email: mheath@rk.com.au

11. The information contained in this
presentation is intended as general
commentary and should not be regarded as
legal advice. Should you require specific
advice on the topics or areas discussed
please contact the presenter directly.
Disclaimer
11

12. 12
QUESTIONS

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