The company, JTI-Macdonald, said it could face bankruptcy as a result of the tax claim, which was lodged last week.
It is seeking protection under Canada’s Companies’ Creditors Arrangement Act in a move aimed at protecting 500 jobs.
The Quebec government is demanding the back taxes on profits made in the 1990s, which it claims were generated from contraband trade.
A preliminary hearing is due to take place next April in Ontario, the BBC Online reported.
JTI sells well know brands like Camel, Salem and Winston.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies