24 January 2012 External T.I. 2011-0422501E5 - Disclosure of Social Insurance Number

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Principal Issues: Whether it is an offence under the Income Tax Act for an employer to disclose the social insurance numbers of its employees to the union in accordance with a provision of a collective agreement.

Position: General comments provided.

Reasons: Unless the employee provides their written consent, the SIN can only be disclosed in the circumstances outlined in subsections 237(3) and (4). Under 239(2.3) of the Act unauthorized disclosure or communication of the SIN is an offence. However, there are a number of situations where there is a legislative requirement for employees to provide their SIN to their employer.

XXXXXXXXXX
					2011-042250
					Gillian Godson
					613-957-8981

January 24, 2012

Dear XXXXXXXXXX :

Re: Disclosure of Social Insurance Numbers

We are writing in reply to your inquiry for a technical interpretation regarding the disclosure of social insurance numbers ("SINs"). Specifically, you have asked whether it is an offence under the Income Tax Act (the "Act") for an employer to disclose the SINs of its employees to a union where such disclosure is made mandatory according to the provisions of a collective agreement.

An individual is required, pursuant to paragraph 237(1.1)(a) of the Act, to provide his or her SIN to any person required to make an information return where the SIN is required. However, the SIN is a confidential number and any unauthorized disclosure is prohibited under the Act. Accordingly, under paragraph 237(2)(b) of the Act, the person required to make the information return is precluded from disclosing a SIN, otherwise than as required or authorized under the Act or the Income Tax Regulations, unless written consent is provided by the individual assigned the SIN.

You have suggested that if a collective agreement includes a clause that requires the employees' SINs to be disclosed to the union, such a clause may be considered as the employees' consent to such a disclosure. We disagree. In our view, the inclusion of such a clause would not constitute written consent from the employees to disclose their SINs to the Union.

The disclosure or communication of a SIN is permitted as outlined in subsections 237(3) and (4) of the Act. However, the circumstances you have described in your inquiry do not meet the conditions of the aforementioned subsections.

The unauthorized disclosure or communication of a SIN is an offence under subsection 239(2.3) of the Act and could result in a fine not exceeding $5,000 or imprisonment for a term not exceeding 12 months or both. However, unauthorized disclosure under subsection 239(2.3) does not include disclosure made "as required or authorized by law, in the course of duties in connection with the administration or enforcement of this Act or for a purpose for which it was provided by the individual". For example, if the union makes taxable payments to the employees from monies derived from the employer, disclosure of the employees' SINs to the union for purposes of information reporting (i.e., T4 s) would not be an offence. More information on the use of SINs can be found on the Office of the Privacy Commissioner of Canada's web site at: http://www.priv.gc.ca/resource/ii_4_02_e.cfm.

Based on the information you have provided in your inquiry, we cannot confirm whether or not the situation you have described would constitute unauthorized disclosure of the employees' SINs. Such a confirmation would require the details of the reason the collective agreement requires the employer to provide the employees' SINs to the union and any applicable legislative authority.

We trust that these comments will be of assistance.

Yours truly,

Terry Young, CA
For the Director
International Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch