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Excise and Specialty Tax Program – Phase II

Assessment, Benefit and Service Branch

Individual Returns Directorate

On this page

Overview & Privacy Impact Assessment (PIA) Initiation 

Government institution

Canada Revenue Agency

Government official responsible for the PIA

Soren Halverson
Assistant Commissioner
Legislative Policy and Regulatory Affairs Branch

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

Anne Marie Laurin
Director General
Access to Information and Privacy Directorate
Public Affairs Branch

Name of program or activity of the government institution

Policy, Rulings and Interpretations

Standard or institution specific class of record:

Excise and Specialty Tax
CRA LPRAB 030

Standard or institution specific personal information bank:

Excise and Specialty Tax
CRA PPU 062
TBS Registration Number: 003128

Legal authority for program or activity

Personal information is collected under the authority of section 5 of the Canada Revenue Agency Act which gives to the Canada Revenue Agency (CRA) the mandate to support the administration and enforcement of the legislation under the responsibility of the Minister of National Revenue.

The Excise and Specialty Tax Program is responsible for administering the provisions of the Excise Act, the Excise Act, 2001, the non-GST/HST portions of the Excise Tax Act, Select Luxury Items Tax Act, Greenhouse Gas Pollution Pricing Act, 2018, and Air Travellers Security Charge Act.

Excise Duty Stamping Regime

The Minister of National Revenue has sole authority, under subsection 25.1(4), 158.03(4) and 158.36(4) of the Excise Act, 2001 to authorize a stamp producer (third party supplier) to supply excise stamps to persons approved by the Excise and Specialty Tax Program (s.25.1, ss.158.03(1), and ss.158.36(1); the legal possession of excise stamps is restricted to specific persons and circumstances (s.25.3, s.158.05, and s.158.38); and has the authority to cancel, return or destroy excise stamps (s.25.5, s.158.07, and s.158.4).

Part 3 of the Excise Act, 2001 specifies regulatory and imposition positions with respect to tobacco products and tobacco excise stamps. Part 4.1 of the Act specifies the regulatory and duty imposition provisions related to cannabis products and cannabis excise stamps. Part 4.2 of the Excise Act, 2001 specifies the regulatory and duty imposition provisions related to vaping products and vaping excise stamps. Further to this, Part 2 allows the Minister to issue, refuse or cancel licences under the Act.

Section 208 allows for the requirement to provide records or information for purposes related to the administration or enforcement of the Excise Act, 2001. Subsection 206(3) states the Minister may specify in writing, the form a record is to take and any information that the record must contain. The authority to disclose information for purposes of administering the Excise and Specialty Tax Program is contained in subsection 211(6) of the Excise Act, 2001.

Excise Duty Commodities

The Minister of National Revenue has the authority to regulate the production, manufacture, and packaging of alcohol, cannabis, tobacco and vaping products, as well as impose duties on these products, under subsection 8 of the Excise Act, 2001.

Part 3 of the Act specifies regulatory and imposition positions with respect to tobacco products. Part 4 of the Act specifies the regulatory and duty imposition provisions related to alcohol products. Part 4.1 of the Act specifies the regulatory and duty imposition provisions related to cannabis products. Part 4.2 of the Act specifies the regulatory and duty imposition provisions related to vaping products. Further to this, Part 2 allows the Minister to issue, refuse or cancel licences under the Act. General provisions concerning excise duty and other amounts payable with respect to alcohol, cannabis, tobacco and vaping products may be found in Part 5 of the Excise Act, 2001. Specifically, section 208 allows for the requirement to provide records or information for purposes related to the administration or enforcement of the Act. Subsection 206(3) states the Minister may specify in writing, the form a record is to take and any information that the record must contain. The authority to disclose information for purposes of administering the Excise and Specialty Tax Program is contained in subsection 211(6) of the Excise Act, 2001.

The Minister also has the authority to regulate the production of beer products, as well as impose duties on these products, under the Excise Act. Part 3 of the Act specifies the regulatory and imposition positions. Further to this, Part 1 allows the Minister to issue, refuse or cancel licences under the Act. General provisions concerning excise duty and other amounts payable may also be found in Part 1 of the Act. Specifically, section 33 allows for the requirement to provide records or information for purposes related to the administration or enforcement of the Act. Section 31 states the Minister may specify the form a record is to take and any information that the record must contain.

Officials are given the authority to exercise power or perform duties and functions of the Minister of National Revenue through administrative delegation instruments signed either by the Minister or by the Commissioner.

Fuel Charge

According to the Greenhouse Gas Pollution Pricing Act, 2018, the Minister of National Revenue is tasked with administering and enforcing the fuel charge-related initiatives as per section 93 of the Greenhouse Gas Pollution Pricing Act. Section 104 requires every person required to pay a charge, who files a return or claims a rebate, to keep and provide all records necessary for purposes related to administration or enforcement of the Act. Subsection 107(2) of the Greenhouse Gas Pollution Pricing Act states that confidential information cannot be used or provided unless it is specifically authorized by section 107 of the Greenhouse Gas Pollution Pricing Act.

Select Luxury Items Tax

The Minister of National Revenue has the authority to administer and enforce the provisions of the Select Luxury Item Tax Act under section 78 of the Act. Section 88 requires every person to pay an amount of tax, who files a return or claims a rebate, to keep and provide all records necessary related to administration or enforcement of the Act. Subsection 91(2) of the Select Luxury Item Tax Act states that confidential information cannot be used or provided unless it is specifically authorized by section 91 of the Act.

Non-GST provisions of the Excise Tax Act

With respect to the non-GST provisions of the Excise Tax Act, the Minister of National Revenue is responsible for the administration of the tax on insurance premiums and the federal excise tax program.

Under Part 1 of the Excise Tax Act, subject to certain exceptions, residents in Canada who take out insurance against a risk ordinarily within Canada with a foreign insurer or broker must pay a tax on the net premiums paid on the insurance. Where net premiums are taxable, Part I also provides that these insurees as well as insurers/brokers must file returns with the Minister.

Pursuant to provisions within Parts 3, 6 and 7 of the Excise Tax Act, every person who is required to pay excise taxes must apply with the Minister for a manufacturer’s licence. The Minister has the authority to grant and cancel manufacturers’ licences as well as exempt any person or class of persons from being required to obtain a manufacturer’s licence. The Minister also has the authority to grant and cancel a wholesaler’s licence, a voluntary licence that is available to eligible persons that resell excise taxable goods. Both licensed manufacturers and licensed wholesalers must file returns with the Minister.

Air Travellers Security Charge

The Minister is responsible for the administration of the air travellers security charge. The charge is applied to an individual’s air transportation service and collected by air carriers. Under the Air Travellers Security Charge Act, air carriers that are required to collect the charge must register and file returns with the Minister.

Softwood Lumber

According to the Softwood Lumber Products Export Charge Act 2006, the Minister of Revenue is tasked with administering and enforcing this Act as per section 19. Section 20(2) states that the Minister of National Revenue can authorize officials to exercise powers or perform duties, including any judicial or quasi-judicial power or duty of the Minister. Section 49 allows for the requirement to provide any information or additional information, or record, for purposes related to the administration or enforcement of the Softwood Lumber Products Export Charge Act 2006. Subsection 84(2) of the Softwood Lumber Products Export Charge Act 2006 states that confidential information cannot be used or provided unless it is specifically authorized by section 84 of the Softwood Lumber Products Export Charge Act 2006.

Importation of Intoxicating Liquors

The Importation of Intoxicating Liquors Act imposes controls on the international and interprovincial movement of alcohol, and provinces and territories are empowered to impose their own restrictions.

The Act does not contain any provisions related to the collection of personal information or use of any confidential information.

Summary of the project, initiative or change

Overview of the Program or Activity

The Excise and Specialty Tax Program is responsible for licensing and registration of clients; client services, including rulings and interpretations; audit; compliance reviews; and enforcement assistance programs. The program is also responsible for policy development; quality assurance and program monitoring; developing audit, compliance and licensing programs; conducting civil litigation actions; and developing information sharing agreements.

The program works with other agencies and departments (e.g., Canada Border Services Agency, Health Canada, Environment and Climate Change Canada), provinces and territories, in developing, drafting and consulting on new legislation and regulations. The administration of excise duties and specialty taxes has a broad impact on the CRA due to the very high profile of the commodities involved.

The program involves compliance activities with respect to licensees (individuals and other entities) who hold licences/registrations with respect to the possession, production, manufacture, importation/exportation and/or sale of alcohol, cannabis, tobacco and vaping products, and possession of excise stamps under the Excise Act, 2001 and beer products under the Excise Act with respect to the regulatory and taxing provisions under the Acts.

The Privacy Impact Assessment for this program was completed in two phases. Phase I was completed in September 2023 and includes the following initiatives:

The summary for Excise and Specialty Tax Program Phase I can be found under the 2023-2024 tab of the Privacy assessments webpage.

Phase II

Luxury Tax

The luxury tax is a tax on the sale or importation of certain vehicles and aircraft priced above $100,000 and certain vessels priced above $250,000. The Select Luxury Items Tax Act (the Act) received royal assent on June 23, 2022, and came into effect on September 1, 2022. Vehicles, aircraft or vessels that fall within the scope of the luxury tax regime are known respectively as subject vehicles, subject aircraft or subject vessels. Such vehicles, aircraft and vessels are broadly referred to as subject items.

Section 50(3) of the Act states that a person is required to be registered as a vendor if the person, in the course of a business of selling subject items in Canada, either sells or imports a subject item that has never been registered with the Government of Canada or a province, with a value exceeding the relevant price threshold. Such persons generally include manufacturers, wholesalers, retailers and importers of vehicles, aircraft or vessels that are within the scope of the tax regime.

A person may register for a luxury tax account in prescribed form using Business Registration Online, My Business Account, or by postal mail. Program officers review the information submitted to determine if a person is required to be registered under section 50 of the Act. Information required includes the legal name, operating name, business number, physical business and mailing addresses, email address, and name of authorized person. If it is determined that a person is required to be registered, the program sends a letter confirming their assigned account number and effective date of registration. If the person does not meet the requirements under the Act, the program sends a letter denying the application with an explanation as to why they are not required to be registered. Information collected from the registration process is captured and is used to populate the luxury tax registry. The luxury tax registry is an online service open to the public that can be searched to verify the registration status of a vendor by entering the luxury tax account number, business name, and the type of luxury item(s) they sell. A person that is registered or required to be registered must file a quarterly luxury tax return under subsection 55(1) of the Act.

A person that is not registered and not required to be registered must also file a luxury tax return when the luxury tax becomes payable by that person under subsection 55(2) of the Act. Situations where a non-registered person would have to report luxury tax payable include:

Information provided on the luxury tax return may include the filer's legal name, trade name, luxury tax account number, business number, business, individual and mailing address, email address, vehicle identification numbers, aircraft serial numbers, vessel hull numbers, and name of authorized person. The information is used when determining a filer’s tax liability and for issuing tax certificates for subject aircraft and subject vessels.

Under subsection 59(1) of the Act, a person must file an information return if the person:

Information provided on the information return may include the filer's legal name, trade name, luxury tax account number, business number, business, individual and mailing address, email address, vehicle identification numbers, aircraft serial numbers, vessel hull numbers, and name of authorized person. The information is used to keep track of sales and imports of subject items where the vendor is not liable for luxury tax payable.

A registered person files a combined luxury tax and information return. A non-registrant files a combined luxury tax and information return when they have luxury tax payable, otherwise they file only an information return. If casework is involved when processing a return, such as when processing an amended return or a return missing information, the personal information provided will be stored in CRA internal systems.

A person that intends on importing a subject aircraft or subject vessel that meets the necessary conditions may do so without luxury tax being payable by applying for a special import certificate under section 38 of the Act. Information provided on this application may include the name of the organization or individual making the claim, luxury tax account number, business number, physical and mailing address, aircraft serial number, vessel hull number, and name of authorized person. The information is used to approve or deny the issuance of the certificate. 

A person must apply for a tax certificate under section 37 of the Act if tax in respect of a subject aircraft or a subject vessel becomes payable. The application may be made either on a stand-alone form or on a luxury tax return. Information provided on the information return may include the filer’s individual, legal or trade name, luxury tax account number, business number, business, individual and mailing address, email address, aircraft serial number, vessel hull number, and name of authorized person. The information is used to populate the luxury tax certificate registry. The public may search the registry when verifying the tax certificate status of a subject aircraft or subject vessel.

A foreign representative can claim a rebate of the luxury tax payable on the purchase of a subject item under section 42 of the Act. Information provided on the application may include the name of the organization or individual making the claim, luxury tax account number, business number, identity card number, physical and mailing address, vehicle identification number, aircraft serial number, vessel hull number, and name of authorized person. The information is used to approve or deny the payment of the rebate. 

A person can request to maintain their records outside of Canada under subsection 88(3) of the Act. Information provided on the application may include applicant's legal name, trade name, luxury tax account number, business number, business, individual and mailing address, and name of authorized person. The information is used to approve or deny the request. 

A person can apply to file separate luxury tax returns for their branches or division under subsection 73(1).  Information provided on the application may include applicant's legal name, trade name, luxury tax account number, business number, business, individual and mailing address, and name of authorized person. The information is used to approve or deny the application. 

A person may request a ruling or interpretation related to the application of the luxury tax. Information provided for a request may include the requester’s business, legal or personal name, luxury tax account number, business number, business, individual and mailing address, and name of authorized person, as well as names of third parties. The information is used to determine and issue a response to the request.

Softwood Lumber

Canada and the United States signed the 2006 Softwood Lumber Agreement on September 12, 2006. The agreement, Canada agreed to enforce regulations, such as in the form of taxes on lumber exports headed to the United States. The Softwood Lumber Products Export Charge Act 2006 was enacted to impose a charge on the export of certain softwood lumber products to the United States and a charge on refunds of certain duty deposits paid to the United States. The Canada Revenue Agency was responsible for the overall administration of the legislation including the registration of exporters, processing of returns and remittances, verification and assessments, legislative rulings and interpretations, and development of policies and guidelines.

The Softwood Lumber Agreement expired on October 12, 2015, and the program sunset in 2016. The Canada Revenue Agency no longer collects or shares personal information; or administers any program or activity under the Softwood Lumber Products Export Charge Act 2006.

Importation of Intoxicating Liquors

The Importation of Intoxicating Liquors Act imposes controls on the international and interprovincial movement of alcohol, and provinces and territories are empowered to impose their own restrictions. It sets out conditions in which intoxicating liquors can be imported into a province in Canada. Under the Importation of Intoxicating Liquors Act, certain alcohols may only be imported by a board or other governmental agency legally authorized to sell intoxicating liquor in that province. Exceptions to the general prohibitions exist for alcohol imported for the purpose of blending with domestic alcohol, packaging in Canada, and certain scientific or industrial uses of alcohol. All importations must also comply with the Excise Act and the Excise Act, 2001.

The Canada Revenue Agency does not conduct any activities related to the Importation of Intoxicating Liquors Act. The program’s role is limited to responding to any taxpayer inquiries and informing them of their rights and obligations under the applicable provisions of the legislation. Personal information is not collected.

Scope of the Privacy Impact Assessment

This privacy impact assessment has two phases. Phase 1, which was completed in September 2023, includes how personal information relating to the tobacco, vaping, alcohol and cannabis stamping regime; tobacco, vaping, alcohol and cannabis licensing and registration; and fuel charge is collected, used, transferred and safeguarded within the Excise and Specialty Tax Program. That assessment also includes the compliance, rulings, and interpretation components of those program activities.

The current phase (Phase II) includes how personal information relating to the Select Luxury Items Tax Act, Air Travellers Security Charge Act, the non-GST provisions of the Excise Tax Act, Softwood Lumber Products Export Charge Act 2006, and Importation of Intoxicating Liquors Act is collected, used, transferred and safeguarded within the Excise and Specialty Tax Program. This phase includes the compliance component of those program activities, except the softwood lumber and importation of intoxicating liquors as there is no compliance component of those program activities.

This privacy impact assessment does not include the following, as they are the responsibility of the Assessment, Benefit, and Service Branch:

Risk identification and categorization

A) Type of program or activity

Compliance / Regulatory investigations and enforcement  

Level of risk to privacy: 3

Details:

Excise Duty Commodities

To ensure a person is eligible for a licence or registration with respect to alcohol, cannabis, tobacco or vaping products, the Excise and Specialty Tax Program is responsible for determining if a person satisfies the requirements set out in subsections 2 and 3 of the Regulations Respecting Excise Licences and Registrations. Program officers review the information provided on the prescribed application forms to determine if a person is eligible for a licence/registration under the Excise Act, 2001. In addition, a compliance program is in place to ensure a person is in compliance with the regulatory and taxing provisions related to alcohol, cannabis, tobacco or vaping products under Parts 3, 4, 4.1 and 4.2 of the Excise Act, 2001. Program officers review the records required to be kept under section 206 of the Act and section 13 of the Regulations Respecting Excise Licences and Registrations.

To ensure a person is eligible for a licence with respect to beer products, the Excise and Specialty Tax Program is responsible for determining if a person satisfies the requirements set out in Parts I and III of the Excise Act. Program officers review the information provided on the prescribed application form to determine if a person is eligible for a licence under the Excise Act. In addition, a compliance program is in place to ensure a person is in compliance with the regulatory and taxing provisions related to beer under Part III of the Excise Act. Program officers review the records required to be kept under section 31 of the Act.

Excise Duty Stamps

Only authorized persons are eligible to purchase excise stamps. For this reason, the Excise and Specialty Tax Program is responsible for determining if the applicant to the stamping regime has an active licence or prescribed persons account, sufficient security and has provided a valid delivery address on the prescribed form. For the purpose of registering a stamp purchasing account and users, the prescribed form collects the company’s business number, the name and signature of the authorized person to register to the stamping regime, stamp delivery address, and the name and email address of the authorized persons for the purchase of stamps. An eligible applicant, once registered to purchase stamps in the online stamp ordering system, will receive an automated email with their user ID and a temporary password. In addition, a compliance step is taken before approving each stamp order. The stamp order is reviewed to ensure that the licensee or prescribed person has filed all required returns, has sufficient security and stamp ordering capacity. If one of these items is missing, the stamp order is rejected, and the person is advised.

Fuel Charge

The Excise and Specialty Tax Program does compliance activities including post assessment audit verification of fuel charge amounts reported, and/or rebates claimed on fuel charge returns.

Tax on Insurance Premiums

The Excise and Specialty Tax Program is responsible for administering the tax on insurance premiums, including conducting all related compliance activities.

Excise Tax and Other Levies

The Excise and Specialty Tax Program determines whether or not a person is eligible for a manufacturer’s licence and/or a wholesaler’s licence, including compliance with the tax program by conducting audits and verifications of excise tax amounts reported and/or refund amounts claimed.

Luxury Tax

The Excise and Specialty Tax Program determines if a person satisfies the requirements set out in section 50 of the Select Luxury Items Tax Act (the Act), as well as ensuring a person is in compliance with respect to the filing of luxury tax and information returns under sections 55 and 59 of the Act. 

Once registered, registrants must file their returns on a quarterly basis under section 54 of the Act, whether they have a luxury tax to report or not. Luxury tax returns are reviewed for compliance when outstanding, amended, and when rebates are claimed on the return.  

Approving or denying luxury tax rebate applications for foreign representatives claimed under section 42 of the Act.

Approving or denying tax certificates and special import certificate applications applied for under division 3 of the Act.

The Excise and Specialty Tax Program also does post assessment audit verification of luxury tax payable reported and/or rebates claimed on luxury tax returns.

Air Travellers Security Charge

The Excise and Specialty Tax Program is responsible for compliance activities including conducting audits and verifications of air travellers security charge amounts reported and/or refund amounts claimed.

Softwood Lumber

The Softwood Lumber Agreement expired on October 12, 2015, and the program no longer collects or shares personal information, nor does it administer any program under the Softwood Lumber Products Export Charge Act 2006.

Importation of Intoxicating Liquors

The program’s role is limited to responding to any taxpayer inquiries and informing them of their rights and obligations under the applicable provisions of the legislation. The program does not conduct any compliance activities related to the Importation of Intoxicating Liquors Act.

B) Type of personal information involved and context

Social insurance number, medical, financial or other sensitive personal information and/or the context surrounding the personal information is sensitive. Personal information of minors or incompetent individuals or involving a representative acting on behalf of the individual. 

Level of risk to privacy: 3

Details:

The excise duty commodities and excise duty stamping activity use personal information, including first name, last name, date of birth, and home address. The excise duty commodities activity collects financial information in the form of a business plan, to ensure the person has sufficient financial resources to conduct their business in a responsible manner in order to meet the requirement for the licence.

The fuel charge activity uses business information including business number, legal name, operating name, physical address, mailing address, location where records are kept in Canada, and the name, title, telephone number, and signature of the authorized individual of the business for compliance activities. Wherever applicable, the address of the location where records are kept, if they are maintained outside Canada.

Luxury Tax

For the collection of the luxury tax, information such as business number, legal name, operating name, physical address, mailing address, location where records are kept in Canada, and the name, title, telephone number, and signature of the authorized individual of the business is used for compliance activities. Wherever applicable, the address of the location where records are kept, if they are maintained outside Canada.

Excise Tax and Other Levies

For the collection tax on insurance premiums, excise tax, and air travellers security charge information such as the business number, legal name, operating name, physical address, mailing address, location where books and records are kept, and the name, title, telephone number, and the signature of the authorized individual of the business is used for compliance activities.

Softwood Lumber

The Softwood lumber program collected information including business number, legal name, operating name, physical address, mailing address, location where records are kept in Canada, and the name, title, telephone number and signature of the authorized individual of the business. This information was used for registration and compliance activities.

Importation of Intoxicating Liquors

Personal information is not collected or used.

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 program interacts and shares information with internal CRA stakeholders, other federal institutions, provincial governments as well as private sector organizations.

The Excise and Specialty Tax Program and the Canada Border Services Agency exchange information on a reciprocal basis for the effective administration and enforcement of their respective laws. Information exchanged includes shipment information – amounts and value as well as information on whether the importer is a licensee or a prescribed person under the Excise Act or Excise Act, 2001.

In the cannabis duty context, the program receives information from Health Canada to validate that the applicant has received a licence under the Cannabis Act and its Regulations as the person is required to hold two valid licences, one from Health Canada and another from the Excise and Specialty Tax Program.

In the fuel charge context, the program is working on a memorandum of understanding to share information with Environment and Climate Change Canada. Part I of the Greenhouse Gas Pollution Pricing Act is administered by the Excise and Specialty Tax Program and Part II is administered by Environment and Climate Change Canada. Large emitters located in listed provinces and registered under Part II can register under Part I as registered emitters and have their fuel delivered without the fuel charge. Environment and Climate Change Canada provides the program the information to validate the emitter registration and the effective date of registration as allowed by subsection 107(14) of the GGPPA. At this time, no information is being shared by the Excise and Specialty Tax Program to Environment and Climate Change Canada. We expect the memorandum of understanding to be completed by the end of the fiscal year 2024-2025.

Subsection 20(4) of the Greenhouse Gas Pollution Pricing Act applies a charge on the importation of fuels for persons, including certain registrants to be paid and collected under the Customs Act. The program is working on a written collaborative agreement. Limited registration data will be shared to assist the Canada Border Service Agency agents in validating fuel importers’ registration and collect charges if required. The information would include but is not limited to the name of the business, registration status, business number and registration type. The written collaborative agreement is expected to be completed by the end of the fiscal year 2024-2025.

The enhanced stamping regime for tobacco, cannabis, and vaping products allows the Minister of National Revenue to authorize a single provider (i.e., a specialized printer) to supply the stamps to persons approved by the Excise and Specialty Tax Program. The Canadian Bank Note Company Ltd., in partnership with SICPA Holding SA, are the single authorized stamp supplier to design, manufacture and distribute excise stamps for tobacco, cannabis, and vaping products. SICPA Holding SA, as a subcontractor to the contract between Canadian Bank Note Company Ltd. and the CRA, does the maintenance and facilitation of the stand-alone system (database program), as outlined in the agreement with SICPA Holding SA. SICPA Holding SA is a global provider of security inks and secured identification. The Canadian Bank Note Company Ltd. has restricted access to the system which allows them to view approved orders for the purposes of order fulfillment and delivery (provincial and federal stamps), as detailed in the stamp-service contract between the CRA and the Canadian Bank Note Company Ltd. The limited personal information shared with the Canadian Bank Note Company Ltd. is restricted to only what is necessary for them to be able to produce and deliver the stamps to the designated person and to the preapproved address.

While some of the provinces also have stamping and/or marking legislation that regulates and controls the possession and sale of tobacco within their jurisdictions, many have adopted the federal stamping regime. When participating in the federal stamping regime, provinces must sign a memorandum of understanding with the CRA to share registrants’ personal information between the Excise and Specialty Tax Program, approved private sector organizations and provinces.

As part of the rulings and interpretation workload, the program publicizes the decision. As such, the program shares severed response letters with four publishing houses. All four publishers hold a licence agreement with the Canada Revenue Agency. The letters hold no personal information as they have been severed by the program prior to releasing.

Luxury Tax

The program is working on amending two memorandums of understanding to share information with the Canada Border Services Agency. The personal information exchanged would include the name of the person and/or business, registration status, business number and registration type.

The luxury tax registry is a publicly searchable online registry that allows a user to search the registration status of a vendor by inputting the business name and luxury tax account number.

The program receives information from provincial/territorial motor vehicle authorities under various memorandum of understandings used to validate the registration of motor vehicles. The program also reviews registration information made publicly available by Transport Canada to validate the registration of aircraft and vessels.

Excise Taxes and Other Levies

The Excise and Specialty Tax Program shares information (name and address, business number, and tax/charge payable) with the Assessment, Benefit, and Service Branch for the tax on insurance premiums, excise tax, and air travellers security charge.

D) Duration of the program or activity

The Excise and Specialty Tax Program is a long-term CRA program with no planned end date.

Level of risk to privacy: 3

Details:

The Excise and Specialty Tax Program is a long-term CRA program with no planned end date.

E) Program population

The program affects certain individuals for external administrative purposes.

Level of risk to privacy: 3

Details:

This program impacts

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: No

  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: No

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: No

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:

The personal information is transferred from one system to another manually by an Excise and Specialty Tax Program employee.   

Some employees work on CRA issued laptops and utilize agency-issued cell phones. Laptops and cell phones comply to the government of Canada’s encryption and security standards. Any telework done is through secure remote access (SRA).

Requests received in writing are digitized and stored in the Document Management Portal for later access by Excise and Specialty Tax Program employees.

Information is exchanged with other government departments via encrypted emails.

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

Details:

In the event of a privacy breach, the potential impacts to the individual/business may be financial loss, reputational harm and possible legal implications. As with all taxpayer information, if the protection of personal information is somehow compromised, disclosed without statutory authority, they may become a victim of identity theft, and their information may be used without their knowledge in ways that could result in a financial or reputational harm to the individual to whom the information relates.

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2025-03-13