Possession of Stolen Property in Canada

The short answer

Possession of stolen property means having something that you know was obtained through a crime, and it is set out in s. 354 of the Criminal Code. You do not have to be the person who stole it. However, the Crown must prove that you knew the property was stolen, or that you deliberately avoided finding out. Knowledge is usually the central issue in these cases, and it is often where they are won or lost.

What the Crown must prove

What "possession" means

In criminal law, possession is broader than physically holding something in your hands. It can include property that you know about and control in your car, home or storage locker. It can also include property that someone else holds for you, if you know about it and have agreed to the arrangement.

However, simply being near stolen property, or being a passenger in a car where stolen property is found, is not enough on its own. Where several people share a home or vehicle, the Crown must prove that you knew about the item and had some measure of control over it.

Knowledge: the central issue

Courts can infer knowledge from the surrounding circumstances. The following facts are often used to suggest that a person knew the property was stolen:

• The item was bought for far less than its real market value.
• Serial numbers were missing, scratched off or altered.
• The item was bought from a stranger, in cash, with no receipt.
• The person had recently stolen property and no explanation for having it.

Deliberately avoiding the truth, which the law calls wilful blindness, can count as knowledge. For example, buying a new laptop for $100 from a stranger in a parking lot looks very different from buying a used one through an online listing, with a receipt and a record of messages.

Recently stolen property

If you are found with property soon after it was stolen, and you offer no explanation, the court may infer that you knew it was stolen, or even that you stole it yourself. However, an explanation that might reasonably be true can defeat that inference. You do not have to prove your explanation, but it usually needs some support, such as messages, an online ad or a witness who saw the purchase.

Common situations

• Buying phones, bikes, tools or electronics online or from second-hand sellers.
• Driving or riding in a car that is later reported stolen.
• Holding items for a friend or relative without asking where they came from.
• Stolen goods being found in a shared apartment or storage unit.

What happens after you are charged

Most people charged with possession of stolen property are released, often with conditions not to possess certain items or contact co-accused. The Crown then provides disclosure, which usually includes police reports, video, ownership records and any statements you made. The Crown also decides whether to charge the higher level of the offence for property over $5,000. Many of these cases depend on whether the evidence of knowledge is strong enough to support a conviction at trial.

Penalties

Penalties follow the same value threshold as theft under s. 355. For property over $5,000, the maximum is 10 years by indictment. For property worth $5,000 or less, the maximum is 2 years by indictment. On summary conviction, the maximum is 2 years less a day, a fine of up to $5,000, or both. There is no minimum sentence, a discharge may be available, and the court can order the property returned to its rightful owner.

Defences

• No knowledge: You did not know the property was stolen and had no reason to suspect it.
• No possession: You did not have control over the property, even if it was nearby.
• A reasonable explanation: You can explain how you came to have it, and the explanation might reasonably be true.
• Charter issues: Police may have unlawfully searched a car or home to find the property.

Returning the property can help the outcome, but it does not cancel an offence that has already been committed.

Effects beyond the sentence

Possession of stolen property is treated as a dishonesty offence, which can affect background checks for employment and entry to the United States. For property over $5,000, the 10-year maximum means a conviction can make a permanent resident inadmissible for serious criminality under Canadian immigration law.

Possible outcomes

What to do now

• Keep every message, ad, receipt and payment record related to the item.
• Do not contact the seller or the owner about the charge.
• Do not give a statement to police before you receive legal advice.

How courts assess your explanation

When you offer an explanation for having the property, the judge does not simply ask whether it is believable. Instead, the judge considers whether the explanation might reasonably be true when it is weighed against all the other evidence in the case. Details such as the price you paid, where the sale took place, how you communicated with the seller and what you did after the purchase can all support or weaken an explanation, so preserving that information early is important.

How we can help

We can gather the evidence of how you got the item, such as messages, ads and receipts, and carefully test the Crown's case on knowledge. Call (647) 223-1980 for a free consultation.

Frequently asked questions