Ottawa proposes to broaden powers of federal officials to disclose confidential information under Excise Tax Act

The federal government recently tabled legislation that would broaden the circumstances under which government officials can release confidential information under the Excise Tax Act, which applies to some non-admitted insurers.

Peter Van Loan, leader of the government in the House of Commons, tabled Bill C-51, the Anti-terrorism Act 2015, Thursday, on Parliament Hill.

If passed into law with no amendments, Bill C-51 would change the Excise Tax Act by allowing government officials to provide certain confidential information, under certain circumstances, to one of 17 “recipient” institutions listed in Schedule 3 of the Act. Those institutions include the Royal Canadian Mounted Police, the Canadian Security Intelligence Service, the Communications Security Establishment and Canadian Armed Forces, among others.

Van Loan tabled the bill on behalf of Steven Blaney, Minister of Public Safety and Emergency Preparedness.

Among other things, the Excise Tax Act provides for a 10% tax, on net premiums, for certain insurance contracts provided by certain foreign insurance carriers or placed by certain brokers and agents outside of Canada.

Related:  Excise Tax Extends Its Reach

Currently, the Excise Tax Act prohibits officials from disclosing confidential information, with some exceptions. Those exceptions include information for criminal proceedings that have already commenced. It also includes information for legal proceedings related to the administration or enforcement of the Excise Tax Act, the Canada Pension Plan, the Employment Insurance Act, the Unemployment Insurance Act “or any other Act of Parliament or law of a province that provides for the imposition of a tax or duty.”

Exceptions currently under the Excise Tax Act include confidential information “relating to imminent danger of death or physical injury to any individual.”

Exactly what in Bill C 51 would have helped Canada with “terrorism” or changed anything in 2014? #canpoli #Harper https://t.co/ZQzW3GAr14

— BobMunroeLawyer (@BobMunroeLawyer) January 31, 2015

Under Bill C-51, Blaney proposes to add another section, allowing the sharing of confidential information to certain government agencies, “if there are reasonable grounds to suspect that the information would be relevant to … an investigation of whether the activity of any person may constitute threats to the security of Canada.”

An official could also release information under the Excise Tax Act “if there are reasonable grounds to suspect that the information would be relevant to” an investigation of “designated offences” under the section of the Criminal Code (462.31) dealing with the proceeds of crime. Information could also be released if it would be relevant to an investigation as to whether a “terrorism offence,” as defined in the Criminal Code, “may have been committed.”

Bill C-51 would “enable the effective and responsible sharing of relevant national security information across federal departments and agencies to better identify and address threats,” the federal government stated in a press release.

Other designated “recipient” institutions – which under Bill C-51 could receive confidential information under the Excise Tax Act – include the federal departments of: defence; citizenship and immigration; finance; Foreign Affairs, Trade and Development; and health. Other recipient institutions include:

•Financial Transactions and Reports Analysis Centre of Canada;

•Canada Border Services Agency;

•Canada Revenue Agency;

•Canadian Food Inspection Agency; and

•Canadian Nuclear Safety Commission

Photo: Steven Blaney, Canada’s Conservative Minister of Public Safety and Emergency Preparedness.