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Criminal Investigations Program v2.0

Compliance Program Branch
Criminal Investigations Directorate Directorate

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Overview & Privacy Impact Assessment (PIA) Initiation 

Government institution

Canada Revenue Agency

Government official responsible for the PIA

Cathy Hawara
Assistant Commissioner
Compliance Programs Branch

Head of the government institution or Delegate for section 10 of the Privacy Act

Anne Marie Laurin
Acting Director General
Access to Information and Privacy Directorate

Name of program or activity of the government institution

Reporting Compliance

Standard or institution specific class of record:

Criminal Investigations
CRA CPB 820

Standard or institution specific personal information bank:

Criminal Investigations
Bank Number: CRA PPU 095
TBS Registration Number: 002752

Legal authority for program or activity

The major acts the Criminal Investigations Program enforces are the Income Tax Act and the Excise Tax Act. Criminal Investigations Program investigators may also enforce any other act or regulation used in the administration and/or enforcement of a Canada Revenue Agency program or initiative.

Tax evasion is the commission or omission of an act, conspiracy to commit such an act, or accommodating someone else to commit such an act, which can result in criminal charges under section 239 of the Income Tax Act, section 327 of the Excise Tax Act and section 380 of the Criminal Code.

Criminal Investigations Program investigators and computer forensic analysts are authorized to enforce the Income Tax Act under subsections 220(2) and 275(3) of the Excise Tax Act. The Income Tax Act was amended to include other legislative measures adopted in response to COVID-19. These measures included the creation of the following subsidies and programs:

Since these measures are part of the Income Tax Act, the Criminal Investigations Program has the authority to investigate related offences under section 239 of the Act and section 380 of the Criminal Code.

Criminal Investigations Program investigators and computer forensic analysts are public officers as defined by section 2 of the Criminal Code. They enforce the laws of Canada relating to the Canada Revenue Agency Act. As public officers, Criminal Investigations Program investigators can obtain evidence by way of search warrants, preservation order and production order under section 487 of the Criminal Code.

Criminal Investigations Program investigators may also obtain sealing orders prohibiting access to, and the disclosure of, any information relating to a warrant, order or authorization under section 487.3 of the Criminal Code.

This is in addition to search powers provided in sections 231.1(1) and 231.1(3) of the Income Tax Act, as well as section 290 of the Excise Tax Act.

Under section 241(9.5) of the Income Tax Act and section 295(5.04) of the Excise Tax Act, Criminal Investigations Program investigators may disclose taxpayer information to the police if the information would provide evidence of listed serious offences.

Upon consultation with the Public Prosecution Service of Canada, Criminal Investigations Program investigators may obtain a court order to compel a taxpayer who has been charged with criminal tax offences to be fingerprinted under paragraph 2(1)(c) of the Identification of Criminals Act. Under subsection 26(2) of the Rental Housing Benefit Act, Criminal Investigations Program investigators can be granted the authority to investigate rental housing benefit offences included in that act.

Under subsection 28(2) of the Dental Benefit Act, Criminal Investigations Program investigators can be granted the authority to investigate dental benefit offences included in that act.

Under subsection 40(2) of the Canada Recovery Benefits Act, Criminal Investigations Program investigators have been granted the authority to investigate offences related to the Canada recovery benefit, the Canada recovery sickness benefit and the Canada recovery caregiving benefit. Offences have been included in that act.

Under subsection 28(2) of the Canada Worker Lockdown Benefit Act, Criminal Investigations Program investigators have been granted the authority to investigate Canada worker lockdown benefit offences included in that act.

Under subsection 20(2) of the Underused Housing Tax Act, Criminal Investigations Program investigators can be granted the authority to investigate underused housing tax benefit offences included in that act.

The Criminal Investigations Program has no authority to investigate offences related to the following program and two benefits:

Note

Criminal Code offences (for example, fraud) related to this program and these two benefits can be investigated by police.

Summary of the project, initiative or change

Overview of the Program or Activity

The Criminal Investigations Program plays a crucial role in protecting Canada’s tax base by investigating persons suspected of committing tax evasion and tax fraud and referring appropriate cases to the Public Prosecution Service of Canada for prosecution.

The Criminal Investigations Program focuses on the most egregious cases that meet one or more of the following priorities:

The CRA will use communication avenues to promote the results of Criminal Investigations Program activities. Information on significant criminal investigation actions such as searches, seizure of assets, the laying of criminal charges and successful prosecutions are published on Canada.ca. Publishing this information serves to maintain the integrity of the tax system and warns Canadians about potential illegal tax schemes. The CRA also informs the public of enforcement actions to deter others from committing tax evasion offences. The Criminal Investigations Program’s Internet site has more information: Tax evasion, understanding the consequences - Canada.ca

What’s New

The Criminal Investigations Program has implemented a virtual private network. The network combines the remote processing centres and the satellite office servers, allowing for better management of resources (hardware, software, human resources), while maintaining appropriate security measures against intrusion.

The Criminal Investigations Program created a database containing information coming from external partners, closed investigations and internally generated documents. This was not the result of a new collection of data. All the data was received from regular business activities and is stored with the Criminal Investigations Program.

The database is used for workload development and ongoing investigations and can be accessed through the work computers of authorized employees. When developing a case for potential investigation, a query is done on the database to find any links to any dataset previously received. This database is used solely for and by the Criminal Investigations Program.

Serious crime measures

Under sections 241(9.5) of the Income Tax Act and 295(5.04) of the Excise Tax Act, the CRA’s approach is to restrict disclosures of taxpayer information to police organizations to:

Dental Benefit Act

Under the Dental Benefit Act, the minister of national revenue may provide services and carry out activities to support the minister of health in the administration and enforcement of this act and may authorize the commissioner or any other person who is employed or engaged by the Agency, or who occupies a position of responsibility at the Agency, to provide those services or carry out those activities. Criminal Investigations Program investigators may investigate persons suspected of committing an offence in relation to the Canada dental benefit.

Rental Housing Benefit Act

Under the Rental Housing Benefit Act, the minister of national revenue may provide services and carry out activities to support the administration and enforcement of this act and may authorize the commissioner or any other person who is employed or engaged by the Agency, or who occupies a position of responsibility at the Agency, to provide those services or carry out those activities. Criminal Investigations Program investigators may investigate persons suspected of committing an offence in relation to the one-time top-up to the Canada housing benefit that was issued under this act.

COVID-19 Response Measures Act

The COVID-19 Response Measures Act received royal assent on October 2, 2020. Under the Act, the minister of Employment and Social Development Canada may authorize the commissioner to designate, as investigators, any employee or class of employees of the Agency for the purpose of the enforcement of the Canada Recovery Benefits Act. Criminal Investigations Program investigators may investigate persons suspected of committing an offence in relation to any of the following benefits:

Canada Worker Lockdown Benefit Act

Under the Canada Worker Lockdown Benefit Act, the minister of national revenue may provide services and carry out activities to support the administration and enforcement of this act and may authorize the commissioner or any other person who is employed or engaged by the Agency, or who occupies a position of responsibility at the Agency, to provide those services or carry out those activities. Criminal Investigations Program investigators may investigate persons suspected of committing an offence in relation to the Canada worker lockdown benefit.

Underused Housing Tax Act

Under the Underused Housing Tax Act, the minister of national revenue may provide services and carry out activities to support the administration and enforcement of this act and may authorize the commissioner or any other person who is employed or engaged by the Agency, or who occupies a position of responsibility at the Agency, to provide those services or carry out those activities. Criminal Investigations Program investigators may investigate persons suspected of committing an offence in relation to the underused housing tax.

Other

The Income Tax Act was amended to include other legislative measures adopted in response to COVID-19. These measures included the creation of the following subsidies and programs:

Since these measures are part of the Income Tax Act, the Criminal Investigations Program has the authority to investigate the offences included under section 239 of the Act and section 380 of the Criminal Code.

Secure drop zone

Implementation of a secure mechanism to exchange third-party data is in place.

Virtual interviews

The Criminal Investigations Program regularly conducts and records witness interviews as evidence for use by the Agency and the Public Prosecution Service of Canada to support the prosecution of criminal cases. Although it is recommended and preferred to hold interviews in person, the Criminal Investigations Program has the requirement, in certain specific circumstances, to hold such witness interviews remotely using virtual recording software hosted in Canada. This requirement was amplified by the restrictions brought about by the COVID-19 pandemic. It is imperative for the Criminal Investigations Program investigators to be able to hold interviews in a timely fashion in order to not compromise cases. In addition, remote witness interviews provide cost savings and facilitate the interview of witnesses located in remote areas or overseas.

The virtual interview software used is intended to provide a web-enabled application to hold virtual witness interviews in criminal investigation cases. The software will maintain the confidentiality, integrity, and availability of the information up to Protected B.

Microsoft Teams

Microsoft Teams helps Criminal Investigations Program employees communicate and share information from their work devices (including calls, chat, videoconferencing, scheduling meetings, etc.).

The software may also be used by Criminal Investigations Program investigators to interview witnesses and third parties. For this purpose, it is strictly limited to the use of the application for voice, audio and video, including live screen sharing, while all other features are not permissible. The use of MS Teams for interviews is not a first-choice option and is only used for certain circumstances where it is not feasible or practical to proceed with in-person interviews. Microsoft Teams is approved for transmitting information for up to and including the level of Protected B.

Credible witness condition of employment report

Regional Criminal Investigations Program employees have to meet an additional standard beyond what is specified in the CRA Code of Integrity and Professional Conduct. They must have and maintain the ability to serve as credible witnesses in criminal court as a condition of employment.

Whenever an employee has something to disclose (for example, criminal convictions or pending charges under a federal act, findings of serious misconduct), they have to complete a credible witness condition of employment report and submit it to the director of the Criminal Investigations Directorate at Headquarters by encrypted email. The director will evaluate whether the disclosed information affects the employee’s overall ability to be a credible witness.

Confidential Informant Program initiative

Information received from confidential informants by the Criminal Investigations Program is covered under informant privilege and protected in accordance with legal requirements (as highlighted by the Supreme Court of Canada in Judgment R. v. Leipert). The Criminal Investigations Program’s commitment to safeguarding individual privacy and maintaining confidentiality is addressed under the Confidential Informant Program initiative, which focuses on the provision of, and protection offered by, informant privilege. This initiative encompasses scenarios in which individuals share critical information under the assurance offered by such privilege. To uphold this commitment, confidential informant information is segregated and only accessible on a need-to-know basis. The Criminal Investigations Program is dedicated to developing and refining procedures for managing confidential informants.

Scope of the privacy impact assessment

This privacy impact assessment identifies and assesses privacy risks to personal information related to the Criminal Investigations Program activities, which include the following:

Risk identification and categorization

A) Type of program or activity

Criminal investigation and enforcement / National security 

Level of risk to privacy: 4

Details:

The Criminal Investigations Program mainly enforces the Income Tax Act and the Excise Tax Act, by investigating persons involved in fraudulent schemes designed to evade payment of tax or generate false or fictitious tax refunds, rebates, benefits or credits. Investigations could result in the laying of criminal charges under section 239 of the Income Tax Act and section 327 of the Excise Tax Act against a particular individual.

B) Type of personal information involved and context

Sensitive personal information, including detailed profiles, allegations or suspicions, biometrics, and the context surrounding that information is particularly sensitive. 

Level of risk to privacy: 4

Details:

Criminal Investigations Program investigators collect and review information about the financial affairs of taxpayers/individuals under investigation, as well as their extended family and personal/business contacts, if required. This includes information about the taxpayer/individual’s earnings, the earnings of their spouse, the types of expenses they have, spending habits and the number of dependants supported. While third-party opinions may be captured, it is the Criminal Investigations Program investigator’s duty to find reliable sources to confirm information from opinions before using it.

Criminal Investigations Program investigators review information from CRA systems and get personal information from external sources, including from open sources (that is, freely available to the public), to use as evidence and to prove alleged offences. Criminal Investigations Program investigators may interview witnesses and the taxpayer/individual under investigation. These interviews are voluntary. Witnesses and the person(s) of interest do not have to answer the Criminal Investigations Program investigator’s questions and do not have to provide any information to the investigator.

Under section 487 of the Criminal Code, Criminal Investigations Program investigators can obtain search warrants to seize personal information about the taxpayer/individual under investigation from the taxpayer/individual’s home, office and accountants’ offices. Under sections 487.012 and 487.013 of the Criminal Code, Criminal Investigations Program investigators can make preservation demands and obtain preservation orders to compel a person to preserve computer data that is in their possession or control. Under sections 487.014 to 487.018 of the Criminal Code, Criminal Investigations Program investigators can obtain production orders to compel a person who is not under investigation to produce personal information about the taxpayer/individual under investigation that will afford evidence of alleged offence(s).

In accordance with section 8(2) of the Privacy Act and subject to any other act of Parliament, Criminal Investigations Program investigators may ask other law enforcement agencies and government organizations for information about a taxpayer under investigation. This could include police reports, passport applications, social insurance registry information, international travel history and reports of suspicious financial transactions. Criminal Investigations Program investigators may also ask the Canada Border Services Agency to do forensic document analysis.

Criminal Investigations Program investigators may seek information from other countries under a tax treaty or a mutual legal assistance treaty to help gather evidence of alleged tax offences.

Criminal Investigations Program investigators, upon consultation with the Public Prosecution Service of Canada, may also obtain a court order to compel a taxpayer who has been charged with criminal tax offences to be fingerprinted under paragraph 2(1)(c) of the Identification of Criminals Act.

C) Program or activity partners and private sector involvement

Private-sector organizations or international organizations or foreign governments

Level of risk to privacy: 4

Details:

The Criminal Investigations Program investigates offences that are often committed in conjunction with offences that fall under the responsibility of domestic (municipal, provincial or federal) and international law enforcement agencies. For example, offences that relate to the possession and use of fraudulent identity documents, proceeds of crime and money laundering are often committed by organized crime groups, because they generate significant amounts of income for the perpetrators. Like legitimate income, proceeds of crime are taxable. An example is the creation and operation of a shell company to support financial crimes.

Where appropriate, Criminal Investigations Program investigators may coordinate their investigation with law enforcement partners to streamline an investigation and avoid compromising each agency’s investigation. In a joint forces operation, the Criminal Investigations Program and the police may share personal information that either party collected about a taxpayer/individual under investigation on a need-to-know basis and to the extent authorized by the Income Tax Act, Excise Tax Act, other laws administered by the CRA and the Privacy Act.

Criminal Investigations Program investigators may interview witnesses such as neighbours, employees and business associates to get information about a taxpayer/individual under investigation.

Criminal Investigations Program investigators may ask international law enforcement agencies to collect evidence held in their respective country that is required for a CRA case. Such requests are made under international treaties and the admissibility of information received is governed by the Canada Evidence Act.

The CRA may disclose taxpayer/individual information to an appropriate law enforcement organization if there are reasonable grounds to believe that the information would provide evidence of serious offences such as laundering proceeds of crime, fraud, corruption, bribery, drug trafficking, terrorism or child pornography (section 241(9.5) of the Income Tax Act and section 295(5.04) of the Excise Tax Act).

D) Duration of the program or activity

Long-term program 

Level of risk to privacy: 3

Details:

The Criminal Investigations Program is a long-term, well-established program and has no expected end date. 

E) Program population

The program affects certain individuals for external administrative purposes.

Level of risk to privacy: 3

Details:

The Criminal Investigations Program deals with individuals and taxpayers suspected of committing tax evasion, tax fraud, and other tax and benefit offences. It also affects witnesses, third parties, confidential informants and anybody who can provide relevant information for criminal investigations done by the Criminal Investigations Program.

F) Technology & privacy

  1. Does the new or modified program or activity involve the implementation of a new electronic system, software or application program including collaborative software (or groupware) that is implemented to support the program or activity in terms of the creation, collection or handling of personal information?

    2. Risk to privacy: Yes

  2. Does the new or modified program or activity require any modifications to IT legacy systems and/or services?

    3. Risk to privacy: Yes

  3. Does the new or modified program or activity involve the implementation of one or more of the following technologies?

Enhanced identification methods - this includes biometric technology (i.e. facial recognition, gait analysis, iris scan, fingerprint analysis, voice print, radio frequency identification (RFID), etc.) as well as easy pass technology, new identification cards including magnetic stripe cards, "smart cards" (i.e. identification cards that are embedded with either an antenna or a contact pad that is connected to a microprocessor and a memory chip or only a memory chip with non-programmable logic).

Risk to privacy: Yes

Use of Surveillance - this includes surveillance technologies such as audio/video recording devices, thermal imaging, recognition devices, RFID, surreptitious surveillance/interception, computer aided monitoring including audit trails, satellite surveillance etc.

Risk to privacy: Yes

Use of automated personal information analysis, personal information matching and knowledge discovery techniques - for the purposes of the Directive on PIA, government institutions are to identify those activities that involve the use of automated technology to analyze, create, compare, identify or extract personal information elements. Such activities would include personal information matching, record linkage, personal information mining, personal information comparison, knowledge discovery, information filtering or analysis. Such activities involve some form of artificial intelligence and/or machine learning to uncover knowledge (intelligence), trends/patterns or to predict behavior.

Risk to privacy: Yes

G) Personal information transmission

The personal information is transmitted using wireless technologies. 

Level of risk to privacy: 4

Details:

Criminal Investigations Program investigator case files are considered Protected B and stored on CRA servers. Servers provide a high level of security, because they have to be in a secure room or locked cabinet, and regular backups of the data are provided. Electronic files are stored in accordance with the CRA Information and Systems Security Directive.

If Criminal Investigations Program investigators need to store case information on the local drive of a workstation, full-disk encryption must be installed.

Criminal Investigations Program investigators use encrypted emails when required to share personal information within the CRA or with federal partners (for example, RCMP, Public Prosecution Service of Canada).

Only as a last resort, and specifically for court filings, applications or authorizations that are part of the court process, or for the service or delivery of judicial authorizations, Criminal Investigations Program investigators may use fax, unencrypted emails and third-party portals. The risks of disclosing taxpayer information using an unsecured method can be reasonably regarded as necessary for the purposes of the enforcement of the Income Tax Act and the Excise Tax Act, when there is no other way for Criminal Investigations Program personnel to exchange information.

Criminal Investigations Program investigator case file information stored on secure USB keys, disks, CDs/DVDs, USB memory sticks and server backup tapes is encrypted with approved encryption algorithms whether in or outside CRA premises, including during transportation, in accordance with the CRA Storage, Disposal, Transmittal and Transport of Protected and Classified Information and Assets Directive.

CRA employees use laptop computers with access controls. Access to the Agency network from remote locations must be done with full disk encryption and standard secure remote access. The Information Technology Branch has developed an enterprise-wide telecommuting platform that offers users secure access to the network.

Criminal Investigations Program investigators have limited access to the Canadian Police Information Centre system, which is a Canada-wide law enforcement network linked to a central computer in Ottawa to help in a case-specific investigation.

Criminal Investigations Program investigators do not save information from the Canadian Police Information Centre into CRA databases or systems. The Centre is not linked with CRA systems. The Criminal Investigations Program does not use its systems to match data with information in the Centre.

Exchange of information pertaining to the Confidential Informant Program initiative may include Protected C information, for which transmission is done in accordance with the Transmittal and Transport of Protected and Classified Information and Assets Standards policy.

H) Potential risk that in the event of a privacy breach, there will be an impact on the individual or employee

Details:

Depending on the type of personal information breached, there is a risk that another person will know that an individual is under investigation by the CRA for tax evasion or tax fraud. This could jeopardize the individual’s career and reputation. They may also become a victim of identity theft, and their information may be used without their knowledge or consent in ways that could result in a financial or reputational loss to them, such as the misuse of their credit card information, debts being incurred on their behalf, etc.

Breach of information about the identity of a confidential informant could lead to financial, mental, reputational or physical harm to that person, depending on the type of file being investigated.

 

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