Principal Issues: What would constitute express consent for the purposes of subsection 209(3) of the Regulations?
Position: It is question of fact. Some guidance provided.
Reasons: Reasonable interpretation. Regulations only provide limited instruction.
XXXXXXXXXX 2018-076893 Lata Agarwal, CPA CMA, MBA October 18, 2018
Dear XXXXXXXXXX:
Re: Express consent for electronic slips
We are writing in response to your email dated August 8, 2018, in which you have sought our views on what would constitute providing “express consent” by a taxpayer (“Client”) to its financial institution (“Issuer”) such that it will meet the statutory requirement laid out under subsections 209(3) and (4) of the Income Tax Regulations (“Regulations”).
In your email, you have referred to CRA technical interpretation letter #2017-073076 which had opined that in order for the Issuer to send an information slip electronically to a Client, the Issuer must obtain the express consent of the Client even where the Issuer has otherwise sent paper copies of those documents to the Client. You have asked whether the above requirement will be met where the Client signs up for online access to a secure website on which an Issuer has electronically uploaded the tax information of the Client so the Client can access or download their tax information slips directly.
We also acknowledge our telephone conversation (Young/XXXXXXXXXX) on July 12, 2018, and our various email communications.
OUR COMMENTS
This technical interpretation provides general comments about the provisions of the Income Tax Act and related legislation. It does not confirm the income tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination. The income tax treatment of particular transactions proposed by a specific taxpayer will only be confirmed by this Directorate in the context of an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R7, Advance Income Tax Rulings and Technical Interpretations.
Although it is question of fact as to what constitutes express consent for the purposes of subsection 209(4), in our view, the statutory criterion outlined above will be met where the Client is duly informed and acknowledges that by accessing the information slips through a secure website in the manner facilitated by the Issuer, the Client is agreeing to receive the information slips electronically. This consent can be granted by the Client on the website itself.
In our view, in line with the above, where a Client signs up for online access to a secure website and downloads their tax information from the site, the express consent requirement in subsections 209(3) and (4) would be met provided the Client is duly informed and acknowledges that they are consenting to receive their information slips electronically.
We trust that these comments will be of assistance.
Yours truly,
Terry Young, CPA, CA
Manager
Administrative Law Section
International Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch