Possession of Stolen Property in Canada: s. 354 and Penalties

In Canada, “possession of stolen property” is charged as possession of property obtained by crime under section 354 of the Criminal Code. You do not have to be the person who stole something to be charged: it is enough to have it, knowing that it came from a crime. The charge is common after police recover stolen goods in a vehicle, a storage unit, a home or an online sale, and it is often laid together with theft or break and enter.

What the law says

Every one commits an offence who has in his possession any property or thing or any proceeds of any property or thing knowing that all or part of the property or thing or of the proceeds was obtained by or derived directly or indirectly from (a) the commission in Canada of an offence punishable by indictment; or (b) an act or omission anywhere that, if it had occurred in Canada, would have constituted an offence punishable by indictment.

The offence covers the stolen item itself and anything bought with its proceeds. It also covers goods obtained by fraud, robbery or any other indictable offence, not only theft.

What the Crown must prove

• Possession: you had the item, or had knowledge of it and some control over it. Possession can be personal, through someone else (constructive possession) or shared with others (joint possession).
• Origin: the property was obtained by an indictable offence such as theft, fraud or robbery.
• Knowledge: you knew it was obtained by crime. Courts also accept wilful blindness: deliberately not asking questions when you suspected the truth.

Two rules often matter in practice. If a person is found with recently stolen property and gives no believable explanation, a court may infer that they knew it was stolen (the doctrine of recent possession). And under s. 354(2), a vehicle or part whose vehicle identification number (VIN) has been removed or obliterated is presumed, unless there is evidence to the contrary, to have been obtained by crime.

Penalties

• Value over $5,000 (or a will): hybrid offence; up to 10 years in prison if the Crown proceeds by indictment (s. 355(a)).
• Value of $5,000 or less: hybrid offence; up to 2 years by indictment (s. 355(b)).
• Summary conviction: up to 2 years less a day and/or a fine of up to $5,000.
• Trafficking in stolen property or possessing it for the purpose of trafficking (ss. 355.2 and 355.4): up to 14 years if the value is over $5,000, and up to 5 years otherwise.

There is no minimum sentence. First offences involving low-value goods often end in a discharge, a fine or probation, with restitution to the owner. Repeat offences, high-value goods, links to organized theft (vehicles, catalytic converters, construction equipment) or resale lead to jail sentences more often.

Common defences

• No knowledge: you bought or received the item honestly, for example at a fair price from a seller who seemed legitimate, and had no reason to suspect it was stolen.
• No possession: the item was in a shared car, room or home and the Crown cannot prove you knew about it or controlled it.
• Not proven stolen: the Crown must prove the goods came from a crime; ownership records and the owner’s evidence are often contested.
• Charter breaches: an unlawful search of a car, phone or home can lead a judge to exclude the evidence (Charter ss. 8 and 24(2)).
• Value: whether the goods are worth more or less than $5,000 changes the maximum sentence, and valuations can be challenged.

If you are charged

• Do not discuss the charge with police or anyone else before getting legal advice. You have the right to stay silent and to speak to a lawyer without delay (your rights if arrested).
• Follow every release condition (no contact, curfew, address). A breach is a new offence (how bail works).
• Attend every court date. Failing to appear is also an offence.
• Get the disclosure: the Crown must give you the evidence it has. A lawyer can review it, negotiate with the Crown (withdrawal, diversion, a lesser charge) or prepare for trial.
• If you cannot afford a lawyer, legal aid and duty counsel at the courthouse can help.

Criminal record and record suspension

A conviction creates a criminal record, unless the court grants a discharge, which is not a conviction (an absolute discharge is removed from the RCMP system after one year, a conditional discharge after three years). A person who was convicted can apply to the Parole Board of Canada for a record suspension (formerly a pardon). The waiting period is 5 years if the Crown proceeded summarily and 10 years if it proceeded by indictment, counted from the end of the whole sentence, including probation and payment of fines (Criminal Records Act, s. 4). More from the Parole Board.

Frequently asked questions

Can I be charged if I did not know an item was stolen?

Not if you genuinely did not know. The Crown must prove knowledge, but deliberately avoiding the truth (wilful blindness) counts as knowing, and unexplained possession of recently stolen goods can lead a court to infer knowledge.

Is buying something stolen online a crime?

Buying it is not an offence in itself, but keeping it once you know or suspect it was stolen can be possession of property obtained by crime. If you discover an item is stolen, contact police rather than reselling it.

What is the maximum sentence for possession of stolen property?

Ten years if the property is worth more than $5,000 and the Crown proceeds by indictment, two years if it is worth $5,000 or less. Trafficking in stolen property carries up to 14 years.

Related offences

• Theft Under $5,000 in Canada
• Theft Over $5,000 in Canada
• Proceeds of Crime in Canada
• Breaking and Entering
• Motor Vehicle Theft in Canada
• Illegal VIN Alteration in Canada

Sources

• Criminal Code, s. 354
• Criminal Code, s. 355
• Criminal Code, s. 355.2
• Criminal Code, s. 355.4
• Criminal Code, s. 355.5

General legal information, current to the Criminal Code as in force on September 30, 2026. It is not legal advice: every case turns on its facts. Speak to a lawyer about your situation.