Objections Program

Appeals Branch
Program Management Directorate

On this page

• Overview & Privacy Impact Assessment Initiation (PIA)
• Summary of the project, initiative or change
• Risk identification and categorization

Overview & Privacy Impact Assessment (PIA) Initiation 

Government institution

Canada Revenue Agency

Government official responsible for the PIA

Tammy Branch
Assistant Commissioner
Appeals 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

Name of program or activity of the government institution

Objections and Appeals

Standard or institution specific class of record:

Income Tax and Charities Objections and Appeals to the Courts
CRA APP 545

Commodity Taxes Objections, Determinations and Appeals to the Courts
CRA APP 555

Standard or institution specific personal information bank:

Income Tax and Charity Objections, and Appeals to the Courts
CRA PPU 172
TBS Registration Number: 20120419

Commodity Tax Objections, Determinations and Appeals to the Courts
CRA PPU 177
TBS Registration Number: 20120418

Legal authority for program or activity

Commodity Tax Objections and Determinations

Excise Act, 2001
Section 195, Objection to assessment
Section 196, Extension of time by the Minister

Excise Act
Section 8(2), Licences – Commissioner may act

Excise Tax Act   
Section 81.15, Objection to assessment
Section 81.17, Objection to determination
Section 81.32 Extension of time for objection or appeal
Section 81.33, Purchaser Objections and Appeals
Section 301, Objection to assessment
Section 303, Extension of time by the Minister

Air Travellers Security Charge Act
Section 43, Objection to assessment
Section 44, Extension of time by the Minister

Greenhouse Gas Pollution Pricing Act
Section 113, Objections to Assessment
Section 114, Extension of time by the Minister

Softwood Lumber Product Export Charge Act, 2006
Section 54, Objection to assessment
Section 55, Extension of time by Minister

Select Luxury Items Tax Act
Section 97, Objection to assessment
Section 98, Extension of time by the Minister

Underused Housing Tax Act
Section 37, Objection to assessment
Section 38, Extension of time by the Minister

Income Tax and Charity Objections

Income Tax Act
Section 165, Objections to assessment
Subsection 166.1, Extension of time by the Minister
Section 168, Objection to proposal or designation
Section 220(3.1), Waiver of penalty or interest

Summary of the project, initiative or change

Overview of the Program or Activity

The Objections Program  reviews notices of objection that an objector (any person who files the notice of objection for themself, for someone else, or for a business) files about a specific notice of assessment, notice of reassessment, notice of determination, or notice of redetermination the Canada Revenue Agency (CRA) issued.

If the objector have a disagreement with an assessment, reassessment, determination or redetermination, they can file a notice of objection. They can submit their objection:

• Electronically using the File a formal dispute service in My Account, My Business Account, or Represent a Client
• By mail
• By delivering it in person to a tax services office or tax centre

The notice of objection must clearly explain what the objector is disputing and why they disagree with the assessment, reassessment, determination, or redetermination.

The Objections Program reviews the notice of objection and all the information the objector provided to:

• Determine whether the notice of objection is valid
• Determine the issue or issues in dispute
• Register the notice of objection and the disputed amount or amounts
• Ensure data integrity to support future decision-making processes by the CRA, various levels of government, and other government agencies
• Verify, collect, and analyze the facts essential to the objection
• Assess the risk throughout the objection process according to the procedures outlined in the CRA’s Risk Management Policy and with the Appeals Branch's risk management framework.
• Research legislation, regulations, policies, directives, and jurisprudence
• Communicate the Objections Program’s decision to the objector

If the Objections Program agrees with the objection in whole or in part, the CRA will adjust the appropriate tax returns and send the objector a notice of reassessment or redetermination. If the Objections Program disagrees with the objection, the CRA will send the objector a notice of confirmation informing them that the assessment, reassessment, determination, or redetermination disputed was correct.

If the objector is dissatisfied with the Objections Program’s decision, they may file an appeal to the Tax Court of Canada. 

Scope of the Privacy Impact Assessment

This Privacy Impact Assessment (PIA) covers the:

• Intake process for notices of objection and correspondence
• Processing and disposal of the objection
• Quality assurance process

The following programs and activities are outside of the scope of this PIA:

• Taxpayer Relief Program (PIA completed)
• Service Feedback Program (PIA completed)
• Canada Pension Plan or Employment Insurance Appeals Program (PIA under development).
• Business intelligence activities
• Tax appeals to the Court (PIA completed)

Risk identification and categorization

A) Type of program or activity

Administration of Programs / Activity and Services

Level of risk to privacy: 2

Details:

When a objector files a notice of objection, the onus is on them to substantiate their claim.

The objector must clearly explain what they are disputing and why they disagree with the assessment, reassessment, determination, or redetermination. The notice of objection should include all the related facts and any documents to support their claim.

The CRA then uses the information provided to make a decision about the issues in dispute. These issues could include:

• Eligibility for various provincial and federal tax credits
• Eligibility for deductions
• Non-refundable tax credits such as the disability tax credit
• Eligibility for and calculation of various benefits payments, such as the Canada child benefit
• The accurate reporting of taxable income
• The proper amounts of contributions required under the Canada Pension Plan Act and Employment Insurance Act
• Whether the CRA correctly assessed the taxes, interest, or penalties under the various acts it administers.

Lack of substantiation could result in the denial of the objection or processing delays.

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 types of information the objector provides in their notice of objection can be very sensitive. This information can include their name and address, a description of their objection, and supporting documents. The supporting documents may contain financial information, medical information, birth and death information, details of a will, or other information.

Depending on what is being objected to, objectors may provide not only their own personal information but also sensitive information about dependants, spouses, or ex-spouses to support eligibility claims for deductions against income, non-refundable tax credits, and other benefits.

C) Program or activity partners and private sector involvement

With other or a combination of federal/ provincial and/or municipal government(s)

Level of risk to privacy: 3

Details:

Goods and services tax (GST) objections filed by taxpayers in Quebec are sent directly to Revenu Québec since it administers the GST in that province. The CRA will provide Revenu Québec only with information it has asked for and that relates to the objection.

The Objections Program provides information internally to the Service, Innovation and Integration Branch . In turn, that branch may provide the information to a province or territory when significant tax changes arise from the Objections Program.

The CRA also uses the information internally for program administration.

The Objections Program is designed to be paperless. However, if the CRA creates paper documents containing personal information, a third party in the private sector stores them. The CRA reviewed the third-party request for proposal and contract to clearly identify and address privacy-related requirements.

D) Duration of the program or activity

Long-term program

Level of risk to privacy: 3

Details:

There is no sunset date because filing an objection is included in the legislation and is part of the Taxpayer Bill of Rights (number four).

E) Program population

The program affects certain individuals for external administrative purposes.

Level of risk to privacy: 3

Details:

The objection process is available to anyone who wants to exercise their right for a formal review or to file a notice of objection.

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?
   Risk to privacy: Yes
2. Does the new or modified program or activity require any modifications to IT legacy systems and/or services?
   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: No

G) Personal information transmission

The personal information is transmitted using wireless technologies.

Level of risk to privacy: 4

Details:

Access to the CRA’s network from remote locations must be done with full disk encryption and standard secure remote access. The Information Technology Branch has developed an agency-wide telecommuting platform that offers users secure access to the network.

Objectors may submit their notice of objection online (in My Account, My Business Account, or Represent a Client), by mail, or by delivering it in person to a tax services office or tax centre.

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

Details:

The sensitivity of information used in the objections process is considered high (Protected B). Unauthorized use or disclosure of this information could result in the loss of privacy, misuse of personal information by unauthorized parties, identity theft, personal financial harm, or embarrassment to the taxpayer or their families.