Montreal man ordered to pay $35K fine for not declaring watch

[RW16610]

An interesting story I stumbled upon this evening. Makes me glad I always pay the 18% (13% Harmonized Sales Tax plus 5% Duties), as much as it hurts. More details regarding this can be found below:

In a Federal Court ruling that opens with the judge musing that “time is money,” a Montreal business owner has been ordered to pay a hefty fine after he imported a luxury watch without declaring it to customs.

Justice Sébastien Grammond ruled Tuesday that David Segall Blouin must pay a $35,000 fine and $11,400 in Quebec sales tax on a watch he bought two years ago for about $115,000.

In August 2022, Blouin flew to Philadelphia to buy an A. Lange & Söhne watch from Luxury Bazaar, which bills itself as a dealer of pre-owned luxury watches. He returned to Montreal the same day but failed to declare the watch to customs, the judgment says.

Separately, Blouin had the empty watch box shipped to Canada by FedEx. He claimed he planned to pay duties when the package was delivered to him, but agents from the Canada Border Services Agency found that the manifest accompanying the package showed a value of just six dollars.

They issued Blouin a fine of $34,650, or 30 per cent of the watch’s value.

Blouin, who owns a transport and logistics company in Montreal, challenged the fine in Federal Court, claiming the decision was unreasonable and didn’t take into account the particular circumstances of his case. He claimed to have previously imported other, less expensive watches and paid duties when they were delivered to him. He said he planned to do the same thing this time.

But Grammond didn’t buy the story, since Blouin flew back to Montreal carrying this watch, while the package sent by courier was declared to be worth almost nothing. He said a border official had noted that bringing undeclared goods into the country and sending the packaging or invoice by mail is a familiar scheme known to the agency.

“In short, there is no reason to believe that Mr. Blouin intended to declare the watch, or that the whole affair was nothing more than a misunderstanding,” the judge wrote.

Now, on top of the fine and sales tax, Blouin is also on the hook for the government’s legal fees.

https://globalnews.ca/news/10816147/...ch-canada/amp/

[1st amg]

I guess they suspected the watch on his wrist was new. Should have just paid the duties


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[GB-man]

Originally Posted by 1st amg

I guess they suspected the watch on his wrist was new. Should have just paid the duties


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Sounds like he got hosed from the box being shipped and under declared. Wow they really put it on him. If I was his attorney I would have opined to the court that he has already suffered financially enough having bought an ALS which is now worth peanuts and costs more than a new car to service lol

[1st amg]

Originally Posted by GB-man

Sounds like he got hosed from the box being shipped and under declared. Wow they really put it on him. If I was his attorney I would have opined to the court that he has already suffered financially enough having bought an ALS which is now worth peanuts and costs more than a new car to service lol

HAHAHAHA good one Tom!

[subtona]

Originally Posted by GB-man

Sounds like he got hosed from the box being shipped and under declared. Wow they really put it on him. If I was his attorney I would have opined to the court that he has already suffered financially enough having bought an ALS which is now worth peanuts and costs more than a new car to service lol

[AzPaul]

Forget it Jake, it's Canada.

[996marty]

Maybe he should have known better seeing that he owns a logistics company.

[Dan Pierce]

Originally Posted by 996marty

Maybe he should have known better seeing that he owns a logistics company.

My thoughts exactly.
dP

[1William]

Just pay what you owe.

[ltmgeller]

Originally Posted by 1William

Just pay what you owe.

Exactly

[330ci]

Can’t say I really feel too bad for him.

Maybe next time he will be smart enough to facilitate a fake eBay sale for the purchase of an empty box before sending it into the country declared as $6…

If you’re going to break laws; at least give yourself an out.

And probably stay more than a few hours

[S’portEye]

Originally Posted by 330ci

Can’t say I really feel too bad for him.

Maybe next time he will be smart enough to facilitate a fake eBay sale for the purchase of an empty box before sending it into the country declared as $6…

If you’re going to break laws; at least give yourself an out.

And probably stay more than a few hours

Genius

[77T]

He knew better.
He doesn't like taxes.
He was fortunate to not be sentenced to a term in the Canada Greybar Hotel.


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[330ci]

Originally Posted by 77T

He knew better.
He doesn't like taxes.
He was fortunate to not be sentenced to a term in the Canada Greybar Hotel.


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Jails are for people who can’t afford fines.

The customs officers earned their pay for once; as did the judge and clerks. Society was paid back a multitude of what was owed. And he’s clearly a highly productive member of society.

Taking his freedom away would hurt society more than his illegal purchase. He employs others, pays taxes on his earnings already. What benefit would there be to incarceration other than to be a deterrent; which is the purpose of the excessive fines.

Not all crimes are worthy of incarceration. I certainly couldn’t fathom how this would be worthy of it.

[brandrea]

I thought I’d share this article regarding a cautionary tale … of a fella who was heavily fined for trying to circumvent the system.

I know I’ve read comments here before from folks saying that’s it’s a clever idea if you’re buying a watch abroad, to wear it home and have the box shipped later on.

You takes your chances …

https://montreal.ctvnews.ca/montreal...rder-1.7077099


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[brandrea]

My apologies … I see my Friend Rommel already posted this.

Please delete.

https://www.rolexforums.com/showthread.php?t=963330

[AzPaul]

.

[ts3]

My sympathy is limited.

Happened at Munich airport to a former football star with watches he had gotten as a present from some gulf country and more recently to Arnold Schwarzenegger.

[brandrea]

Well, we’ve heard it here before on this very forum … maybe those who think it’s a good idea will take pause

[Kinnakeet]

Some might be surprised at how many watches are sent into Canada from the US in ways to avoid customs. I don’t know the ways but grey dealers would. I know that customs in Montreal has been on to this for sometime. I did have one flagged at customs in Toronto and was asked to pay the normal fees that amounted to $2000 maybe a bit more CAD. Have to pay for socialized medicine somehow. The border is a good place to collect.

[77T]

Not all crimes are worthy of incarceration. I certainly couldn’t fathom how this would be worthy of it.

The only point would be deterrence. How would a prison sentence hurt society?

[330ci]

Originally Posted by 77T

The only point would be deterrence. How would a prison sentence hurt society?

He employs 18 people plus himself.


Businesses tend not to do too well without leadership. Furthermore given the size of the operation he likely has to cut/sign off on the checks as well.

Arrest him, he isn’t able to conduct business, 18 other people stop paying taxes as a result, their unable to pay for their needs so the bank doesn’t get their mortgage payments, local business loses out on sales, they go on government subsidies to help them while they search for a new job; that society has 18 less of. All for the want of a tax unpaid.

Not to mention incarceration is expensive and should only be utilized in events where public safety is at risk. Any crime that doesn’t pose a risk to the public should be handled with fines. That is the most beneficial thing to society overall. Taking someone’s freedom should only be reserved for when you can’t afford to pay for your crimes or are a danger yourself. Otherwise there are plenty of people employed across a myriad of agencies to hold people accountable. And they need to earn their keep too. Even if people stop dodging taxes; we’ll still have enforcement officers JIC

[ts3]

Originally Posted by 330ci

He employs 18 people plus himself.


Businesses tend not to do too well without leadership. Furthermore given the size of the operation he likely has to cut/sign off on the checks as well.

Arrest him, he isn’t able to conduct business, 18 other people stop paying taxes as a result, their unable to pay for their needs so the bank doesn’t get their mortgage payments, local business loses out on sales, they go on government subsidies to help them while they search for a new job; that society has 18 less of. All for the want of a tax unpaid.

Not to mention incarceration is expensive and should only be utilized in events where public safety is at risk. Any crime that doesn’t pose a risk to the public should be handled with fines. That is the most beneficial thing to society overall. Taking someone’s freedom should only be reserved for when you can’t afford to pay for your crimes or are a danger yourself. Otherwise there are plenty of people employed across a myriad of agencies to hold people accountable. And they need to earn their keep too. Even if people stop dodging taxes; we’ll still have enforcement officers JIC

Hopefully, at least in theory, everybody is equal when it comes to the law and its enforcement. Whether Montreal man here employs 18 people or not shouldn't be of any consideration. Suggesting the opposite feels like going down a slippery slope. That said, I agree that a fine is more appropriate than a prison sentence given the offense at hand.

[330ci]

Originally Posted by ts3

Hopefully, at least in theory, everybody is equal when it comes to the law and its enforcement. Whether Montreal man here employs 18 people or not shouldn't be of any consideration. Suggesting the opposite feels like going down a slippery slope. That said, I agree that a fine is more appropriate than a prison sentence given the offense at hand.

“Whether someone employs 18 people shouldn’t be a consideration” well, it very much is a factor when determining whether or not to detain someone pending trial. The whole point of incarceration pre trial is to mitigate flight risk. Someone who employs 18 people and can afford a $100k watch likely isn’t going to leave their life behind over a fine.

And when he is that wealthy keeping him out of jail is for his protection too. First thing that happens to anyone in jail is the gangs look you and your family up to see if you can be extorted. He’d be a prime target.

The whole point of incarceration post trial is to protect the public and rehabilitate the criminal. In this case, protecting the public from this guy buying more watches without paying taxes. Even when dodging taxes his purchases still benefit multiple people, without a cost to really anyone but the government who feels entitled to his money. So incarceration really doesn’t make sense.

This person has the value of 19 taxpayers; call it a slippery slope all you want. He has infinite more value to society than a beggar on the street. The beggar on the street isn’t providing jobs, paying taxes or contributing towards positive growth of society. The beggar is a hindrance; no matter how much right to life they have. In the eyes of the law, they have to treat people differently as a result. If you can’t pay money to absolve you of your crimes you’re going to have to pay with your time since there’s nothing left to take. That doesn’t mean that they’re setting a different standard, just that in lieu of cash a different standard has to be upheld.



A beggar will never have to worry about dodging taxes on a $100k watch. And you likely won’t find anyone wealthy committing petty theft. What’s worse from a moral perspective is beyond me. Last Rolex I bought out of Canada was declared as $100 or something ridiculous on the customs form and I was genuinely upset as I’d rather pay the taxes and I didn’t request it. Never paid the taxes on the watch though and don’t feel bad about it. C’este la vie between sales and income taxes the governments get enough out of me

[77T]

Originally Posted by brandrea

Well, we’ve heard it here before on this very forum … maybe those who think it’s a good idea will take pause

Agree - I'm surprised how many argue about paying duties on a watch.


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[brandrea]

Originally Posted by 77T

Agree - I'm surprised how many argue about paying duties on a watch.


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Have to agree Paul.

When researching buying a watch from another country I always take into account what the taxes and duties owed will be. More often than not, it’s less expensive to buy in your own country. At least that’s what my experience has shown.

[1st amg]

I would love to have more details. How they caught on the Customs people

[Carguy87]

Originally Posted by 1st amg

I guess they suspected the watch on his wrist was new. Should have just paid the duties


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Originally Posted by 996marty

Maybe he should have known better seeing that he owns a logistics company.

I would almost guarantee someone snitched on him. How else would they have known to check the declared value of the box getting mailed in later. This guy was probably bragging to the wrong person about getting over on Customs for a $100k+ watch and they dimed him out over jealousy or a personal issue.

Originally Posted by ts3

My sympathy is limited.

Happened at Munich airport to a former football star with watches he had gotten as a present from some gulf country and more recently to Arnold Schwarzenegger.

In fairness to Arnold he was taking that watch to a charity auction, not just trying to duck import duties being a cheapskate (unless there was another incident I didn’t hear about)

Originally Posted by 77T

The only point would be deterrence. How would a prison sentence hurt society?

Prison is an expensive place to warehouse people. In the US (last I worked for DOJ) we as a country were paying on average $33k per year per convict (this is about 10 years ago).. For my tax dollars I’d rather keep child predators and murders locked up longer than waste money on a guy like this. A hefty fine makes total sense for a first offense and now he just paid for some other convict to enjoy another year in the federal B&B.

[77T]

Originally Posted by Carguy87

Prison is an expensive place to warehouse people. In the US (last I worked for DOJ) we as a country were paying on average $33k per year per convict (this is about 10 years ago).. For my tax dollars I’d rather keep child predators and murders locked up longer than waste money on a guy like this. A hefty fine makes total sense for a first offense and now he just paid for some other convict to enjoy another year in the federal B&B.

The fine covers the time served.
Maybe 6 mo. Would be an object lesson for anyone else.


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[Carguy87]

Originally Posted by 77T

The fine covers the time served.
Maybe 6 mo. Would be an object lesson for anyone else.


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That’s fair They could also sentence him to prison time but then suspend it pending clear conduct (assuming they do that in Canada like here in the States). That way the news headlines are still “Man gets prison for not declaring watch.” But as long as he goes with the program he’d never actually go.

Either way I’ll bet between the fine and knowing he’s on a secondary screening list for the rest of his life I’m sure he’ll pony up next time lol.