Principal Issues: Whether taxpayer information may be disclosed to HRSDC where an individual has been cashing his deceased father's old age security and CPP cheques and keeping the proceeds for himself.
Position: Yes.
Reasons: S. 241(4)(a) and (e)(viii) provide that an official may disclose taxpayer information, or allow access to taxpayer information for the purposes of the Canada Pension Plan and paragraph 33.11(a) of the Old Age Security Act.
October 28, 2009
Trust Accounts Division HEADQUARTERS Income Tax Rulings Attention: Lorraine Maisonneuve, Manager Directorate Policy and Legislative Research Section Lindsay Frank (613) 948-2227
2009-034329
Disclosure of Taxpayer Information
This is in reply to an email from Lynn McLeod. At issue, is whether officials of the Canada Revenue Agency may disclose taxpayer information to officials of Human Resources and Skills Development Canada. The information sought to be disclosed concerns an individual taxpayer, who died in 1991, and whose son continues to cash the deceased's benefits under the Canada Pension Plan ("CPP") and the Old Age Security Act ("OASA).
Section 241 of the Income Tax Act ("ITA") provides that taxpayer information must be kept strictly confidential. In this respect, paragraph 241(1)(a) states that no official shall knowingly provide or allow to be provided to any person any taxpayer information. Subsection 241(10) defines "taxpayer information" as information of any kind and in any form, relating to one or more taxpayers, obtained by or on behalf of the Minister for the purposes of the Act or prepared from such information.
Disclosure of taxpayer information is allowed, but only in specific situations. Subsection 241(4) of the ITA provides for the disclosure of taxpayer information relative to specific government programs. Paragraph 241(4)(a), for example, permits disclosure where it is reasonably regarded as necessary for purposes of the administration of the CPP. It should be noted that the Minister of Social Development (now Human Resources and Skills Development) has the responsibility for Part II of the CPP as it relates to pensions and supplementary benefits.
Subparagraph 241(4)(e)(viii) permits the provision of taxpayer information, or allows the inspection of, or access to, taxpayer information for the purposes of paragraph 33.11(a) of the OASA. That paragraph allows the Minister of National Revenue to provide information to the Minister of Social Development (now Human Resources and Skills Development) regarding any beneficiary or spouse thereof.
In light of the foregoing, taxpayer information may be provided to the Minister of Human Resources and Skills Development for purposes relating to the administration of the CPP and the OASA.
Should you need for clarification or additional information, please do not hesitate to contact Lindsay Frank at the number provided above.
B.J. Skulski
Manager
Insolvency and Administrative Law Section
Business and Partnerships Division
Income Tax Rulings Directorate
c.c. Lynn McLeod
A/Senior Programs Officer
Policy and Research Section
Trust Accounts Division