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Show EG The Salt Lake Tribune NATION/WORLD December 22, 1999 Canada Accuses R.J. Reynolds of Smuggling te Avoid Tobacco Taxes ‘THE ASSOCIATED PRESS SYRACUSE, N.Y. — Canada sued R.J. Reynolds Holdings Inc. for $1 billion Tuesday, charging that it and related companies conspired to smuggle to- bacco products into Canada to avoid millions of dollars in taxes. The lawsuit, filed in U.S. District Court in S: , alleges government doubled aoe and duties on tobacco in 199: “The tobacco Soman cannot and will not be permitted to frustrate public policy in Canada, and thatin large part is what this lawsuit is ali about,” Canadian Health Minister Allan Rock said. Seth Moskowitz, a spokesman for R.J. Reynolds Tobacco in Winston-Salem, N.C., said companyofficials could not comment the companies set up an elaborate network of smugglers and offshore companies to flood Canada until they had seen a copy of the lawsuit. The suit alleges that R.J. with cheap cigarettes after the Reynolds ies set Canadian officials in Ottawa ek ceeoe wae upashell Corrupt Organizations Act, rolein: Northern Brands International to protect itself from charges that aimed at mobeters. The lawsuit was filed a day af- thorities said it smuggled 9637 ‘million worth ofcignrettes and al- Between 1997 through the St. Regis Mo- . company intheUnited States — known a RICO, a it sold to smugglers. The suit also alleges that a Ca- ter a former tobacco company exWAS the originally ring, based in Massena, N.Y. Au- sen Ne cxreanives were for supply- prom Shas ahhpales 1980 and 1902, oer . a oifleperrpeee nadian subsidiary of Reynolds, ing a New Yerk smuggting ring hawk Reservation that straddles spond demands ant!tobacco RJR-MacdonaldInc., the Ca- with millions ofcigarettes that he the border in northern New York @¢ health groups | nadian Tobacco Manufacturing eeear to blame lam diantockaatist lian hile pease it wastrying to Cine. was sentenced Monday ‘The suit was filed under the federal Racketeer Influenced and years in prison. RJR has denied it piayed any wiser ” in Binghamton, N.¥.,tonearly six eens canteens _ _ bacco executive to be sentenced prison in the United States for his conduct in court officials anid. Canadians to reduce tobacco 2i on apa oe arettes Canada accounted almost 75 percent of the retail . | price. 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