PROVINCE OF BRITISH COLUMBIA
ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL
Order in Council No. •
0848
, Approved and Ordered ran. 6
Executive Council Chambers, Victoria
On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the
Executive Council, orders that approval is given to the Minister of Finance and Corporate Relations, the Minister of
Human Resources and the Minister of Advanced Education, Training and Technology to sign a Memorandum of
Understanding substantially in the form attached to this order.
tf4' LeikL__--71(1,
Minis.jer of inance and Corporate Relations
Presiding Member of the Executive Council
(This purl is for administrative purposes only and is not pan of the Order.)
Authority under which Order Is made:
Act and section:-
BC Benefits (Income Assistance) Act, section 21, BC Benefits (Youth Works) Act, section 12,
Other (specify):-
Income Tar Act, section 65
July 14, 1998
1175/98/13/mk
MEMORANDUM OF U: DERSTANDING
BETWEEN
THE MINISTER OF FINANCE AND CORPORATE RELATIONS
AND
MINISTRY OF HUMAN RESOURCES
represented by the Minister of Human Resources
AND
MINISTRY OF ADVANCED EDUCATION, TRAINING AND TECHNOLOGY
represented by the Minister of Advanced Education, Training
and Technology
-2PURPOSE
The purpose of the Memorandum of Understanding (MOU) is to establish the rules and
the procedures that will govern the release of taxpayer information from the Ministry of
Finance and Corporate Relations (MFCR) to the Ministry of Human Resources (MHR).
INTRODUCTION
RECOGNIZING that
MFCR is receiving information from Revenue Canada (RC). This information is
being received under the BC Family Bonus Agreement and National Child Benefit
Data Transfer MOU.
Pursuant to the BC Family Bonus Agreement, the BCFB information is being
received by MFCR, in part, for the purpose of administering B.C. social assistance
programs.
Pursuant to the National Child Benefit Data Transfer MOU, the NCBS information
is being received by an official of MFCR as agent for Revenue Canada. The
agent's role is to provide the NCBS information, on behalf of Revenue Canada,
to persons within the Government of British Columbia who need that information
in order to make adjustments to social assistance payments by taking into
account the NCBS. Revenue Canada entered into that MOU under the authority
of section 241(4)(j.1) of the Income Tax Act (Canada), which allows the release
of this information solely for the purpose of permitting the making of an
adjustment to a social assistance payment.
MHR administers certain B.C. social assistance programs that are the
responsibility of MHR. MHR also administers part of a B.C. social assistance
program that is the responsibility of the Ministry of Advanced Education, Training
and Technology (MAETT). MHR performs that administration pursuant to
authority delegated by MAETT to MHR.
MHR requires the BCFB information in order to administer the B.C. social
assistance programs referred to above. MHR requires the NCBS information in
order make adjustments to B.C. social assistance payments, by taking into
account the NCBS.
Pursuant to section 65 of the Income Tax Act (BC), the Minister of Finance and
Corporate Relations has authority to enter into an agreement with MHR and
MAETT, to provide taxpayer information to MHR for the purpose of administering
and enforcing a B.C. social assistance program.
-3•
Applicants for B.C. social assistance consent to MHR obtaining information from
Revenue Canada.
•
The Government of Canada, The Privacy Act (Canada), and the Freedom of
Information and Protection of Privacy Act (BC) require that the confidentiality of
the information obtained by MFCR and communicated to MHR under this MOU
be safeguarded in accordance with the security policy of Canada and the
provisions of those statutes.
PART I DEFINITIONS
1
In this MOU and its Appendices.
"BCFB" means the sum of the B.C. Earned Income Benefit as calculated under
Section 10(3)(b) of the Income Tax Act (BC) and the B.C. basic Family Bonus as
calculated under Section 10(3)(a) of the Income Tax Act (BC),
"CCTB" means the Canada Child Tax Benefit which is administered by RC and
includes the National Child Benefit Supplement (NCBS),
"NCB" means the National Child Benefit which will be jointly administered by the
federal, provincial, and territorial governments,
"NCBS" means the National Child Benefit Supplement which is a component of
the CCTB,
"designated person" means any person who is employed in the service of, who
occupies a position of responsibility in the service of, or who is engaged by or on
behalf of a public body performing a function of government in British Columbia,
or any person who was formerly so employed, who formerly occupied such a
position or who was formerly so engaged,
"legislation" includes regulations and other statutory instruments pertaining to
the administration and enforcement of the NCB,
"official" means any person who is employed in the service of, who occupies a
position of responsibility in the service of, or who is engaged by or on behalf of
the Province of BC, or any person who was formerly so employed, who formerly
occupied such a position or who was formerly so engaged,
"B.C. social assistance" means assistance provided under the BC legislation as
described in Appendix B,
-4" taxpayer" includes any person whether or not liable to pay tax, and
" taxpayer information " means information of any kind in any form relating to
one or more taxpayers, but does not include information that does not directly or
indirectly reveal the identity of the taxpayer to whom it relates.
2.
Nothing in this MOU shall be construed as limiting, restricting or varying the
powers, prerogatives and responsibilities of MFCR, MHR,or MAETT or the officials
or designated persons in their respective ministries.
PART II COMMUNICATIONS OF INFORMATION
3.
MFCR must provide taxpayer information to MHR, as described in Appendix C,
according to the procedures and subject to the conditions set out in this MOU.
4.
Taxpayer information will only be provided if it is related to a B.C. social
assistance benefit for which a B.C. social assistance application has been
completed and signed.
PART III USE AND DISTRIBUTION OF INFORMATION
5.
6.
The information referred to in paragraph 3 may only be used by MHR for the
following purposes:
a)
in the case of NCBS information, for the purpose of making adjustments
to provincial B.C. social assistance payments under the BC legislation
referred to in appendix B, taking into account the amount of NCBS, and
b)
in the case of BCFB information, for the purpose of administering provincial
B.C. social assistance under the BC legislation referred to in Appendix B.
MHR must ensure designated persons or officials in receipt of taxpayer
information understand, agree and uphold the provisions of this MOU related to
the use and protection of information. Accordingly, MFCR will provide designated
persons or officials with related policies and procedures, pursuant to Revenue
Canada's Security Guidelines
PART IV CONTROL, SECURITY AND AUDIT
7.
MFCR and MHR will ensure that their security requirements are consistent with
the Section 30 of the Freedom of Information and Protection of Privacy Act and
Revenue Canada Security Guidelines for the Protection of Information. A
summary of the guidelines is presented in Appendix D.
-5-
8.
MHR must ensure systems and procedures are in place that will leave an
adequate trail for auditing the access to information provided under this MOU.
9.
MFCR and MHR will ensure that information furnished under this MOU will be
protected by returning or destroying, in a secure manner, and subject to the
requirements of the Document Disposal Act of British Columbia, information no
longer required.
PART V EFFECTIVE DATE, TERMINATION AND AMENDMENTS
10.
This MOU is effective from July 1996 and shall remain in effect until one year
from the date one of the parties gives written notice, sent by registered mail, of
its intention to terminate the agreement, or until terminated at any time by mutual
consent.
11.
MFCR and MHR will appoint authorized officials responsible for administering the
MOU. These officials and their responsibilities are listed in Appendix A.
12.
With the approval of the signatories, or their designates, this MOU may be
amended at any time by an exchange of letters between the parties.
13.
Appendices A to D can be amended through an exchange of letters between the
authorized officials listed in Appendix A.
14.
MFCR, MHR and MAETT undertake to notify each other in a timely fashion of any
change in policies, laws or regulations that may affect this MOU.
15.
Should this MOU be terminated under paragraph 7, the use, protection,
confidentiality and security provisions set out in part II, Ill and IV shall continue
to apply to the information that has already been disclosed.
-6-
The Minister of Finance and Corporate Relations
Honourable Joy K. MacPhail
For the Ministry of Human Resources
The Minister of Human Resources
Honourable Jan Pullinger
For the Ministry of Advanced Education, Training and Technology
The Minister of Advanced Education, Training and Technology
Honourable Andrew Petter
APPENDIX A
-6-
LIST OF AUTHORIZED OFFICIALS
FOR MINISTRY OF FINANCE AND CORPORATE RELATIONS
(a) Administrative Issues
(b) Policy Issues
Director
Income Taxation Branch
Ministry of Finance and Corporate
Relations
5th Floor 1802 Douglas Street
Victoria, British Columbia
V8W 9V1
Director
Tax Policy Branch
Ministry of Finance and Corporate
Relations
105-617 Government Street
Victoria, British Columbia
V8T 4K6
(250)-387-3320 (phone)
(250)-356-9243 (fax)
(250)-387-9011(phone)
(250)-356-5071(fax)
FOR THE MINISTRY OF HUMAN RESOURCES
Administrative and Policy Issues
Director
Income Support Branch
5th Floor
614 Humbolt Street
Victoria, British Columbia
V8W 9R2
(250) 387-3133 (phone)
(250) 387-8164 (fax)
APPENDIX B
-7-
BC LEGISLATION
MINISTRY OF HUMAN RESOURCES
Guaranteed Available Income for Need Act
B.C. Benefits ( Income Assistance) Act
Disability Benefits Program Act
MINISTRY OF ADVANCED EDUCATION, TRAINING AND TECHNOLOGY
B.C. Benefits ( Youth Works) Act
MINISTRY OF FINANCE AND CORPORATE RELATIONS
Income Tax Act (BC)
APPENDIX C
-8RELEASE OF INFORMATION
TO MINISTRY OF HUMAN RESOURCES
A.
Taxpayer information approved for release
1
All or a portion of the following information in respect of a taxpayer entitled to an
National Child Benefit Supplement (NCBS) , may be transmitted to the officials
or designated persons by MFCR. This information will be transferred solely for
the purpose of making a B.C. social assistance adjustment based on the NCBS.
CLIENT
IDENTIFICATION
INFORMATION
FAMILY
INFORMATION
PAYMENT
INFORMATION
INDICATORS
Name
Spousal Name
Tax Year
Income too high
Address
Spouse Date of Birth
NCBS Entitlement Amount
Client refusal
Date of Birth
Spouse SIN
NCBS Adjustment Amount
Client filing status
SIN
Martial Status
NCBS Payment Amount
Client is in receipt of a
contingency payment
Martial Status
Child Birth Dates
June 1998 WIS* Amount
Spouse filing status
# of Children
July 1998 hypothetical WIS**
Client ineligible
Invalid Address
Inhibit indicator
ww - means working Income supplement
"hypothetical WIS means an amount the client would have to received If the WIS calculation were still in effect.
This ensures affected clients do not receive less money than before.
2.
All or a portion of the following information in respect of a taxpayer entitled to an
B.C. Family Bonus payment may be transmitted to the officials or designated
persons by MFCR. This information will be transferred for the purpose of
administration and enforcement of a B.C. social assistance program.
a)
b)
c)
d)
e)
f)
the Social Insurance Number of the recipient of the BCFB;
the reason code for the scheduled payment calculation;
the number of children eligible for the BCFB;
the amount the recipient is scheduled to receive for the month
the actual amount paid to the recipient for the month; and
the reason code for the adjustment
3.
The following taxpayer information may be transferred from MFCR to MHR for
those taxpayers eligible for the CCTB but not entitled to receive an NCBS
amount.
CLIENT
IDENTIFICATION
INFORMATION
Name
FAMILY
INFORMATION
PAYMENT
INFORMATION
Tax Year
INDICATORS
Income too high
Address
Client refusal
Date of Birth
Client filing status
SIN
Client is in receipt of a
contingency payment
Martial Status
Spouse filing status
June 1998 WIS' Amount
Client ineligible
July 1998 hypothetical WIS**
Invalid Address
Inhibit indicator
wis • means working income supplement
**hypothetical WIS means an amount the client would have to received If the WIS calculation were still In effect.
This ensures affected clients do not receive less money than before.
4.
The following taxpayer information may be transferred from MFCR to MHR for
those taxpayers who have applied for CCTB but are not entitled to receive an
BCFB amount.
a)
b)
c)
d)
e)
f)
5.
the Social Insurance Number of the recipient of the BCFB;
the reason code for the scheduled payment calculation;
the number of children eligible for the BCFB;
the amount the recipient is scheduled to receive for the month
the actual amount paid to the recipient for the month; and
the reason code for the adjustment
The appropriate security measures as outlined in Appendix D will be observed.
APPENDIX D
-10-
SECURITY DETAILS AND PROCEDURES
A
General Conditions
1.
All information provided by MFCR under this MOU will be protected from
disclosure under Sections 64 of the Income Tax Act (BC) and Sections 239 and
241 of the Income Tax Act (Canada)
2.
Access to information provided under this MOU shall be controlled and limited to
employees (officials) of MHR or designated persons, or consultants hired by
employees (officials) of MHR or be designated persons who:
have a job related need to know the information; and
have been briefed on the provisions of Sections 64 of the Income Tax Act
(BC) and Sections 239 and 241 of the Income Tax Act (Canada) of the
importance of maintaining the confidentiality of tax- related information and
on security measures to adequately safeguard the information.
3.
MHR must safeguard all recorded and electronic information provided MFCR
under this MOU by applying appropriate protective measures as outlined in the
chart form attached.
APPENDIX D (Con't)
B.
Procedures
1.
Any loss, suspect loss or unauthorized disclosure of or access to the information
provided under this MOU must be reported immediately to MFCR for forwarding
to the Department Security Office, Revenue Canada. The following details must
be provided:
-
a description of the information involved;
-
the date, place and circumstances surrounding the incident;
-
the extent of known or probable compromise and the identity of the person
who had or is believed to have had access to the information;
-
action taken or contemplated to remedy the situation; and
-
any additional details which may assist in assessing the loss or
compromise.
2.
A written report should follow as soon as possible after any such incident
described in paragraph 1 of this Appendix and be forwarded to MFCR . The
report should include the information noted above as well as the results of any
investigation conducted following the initial search and notification.
3.
The Departmental Security Office of Revenue Canada should be notified if the
information referred to in paragraph 1 is subsequently found, including the
circumstances under which it was found.
APPENDIX D (Con't)
-12-
1. INCOME TAX ACT (CANADA)
SECTION 239 AND 241
239(2.2) Every person who
(a) contravenes subsection 241(1), or
(b) knowingly contravenes an order made under subsection 241(4.1)
is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000
or to imprisonment for a term not exceeding 12 months, or to both.
239(2.21) Every person
(a) to whom taxpayer information has been provided for a particular purpose
under paragraph 241(4)(b), (c), (e), (h), or (k) or
(b) who is an official to whom taxpayer information has been provided for a
particular purpose under paragraph 241(4)(a), (d), (f), (i), or (j.1)
and who for any other purpose knowingly uses, provides to any person, allows the
provision to any person of, or allows any person access to, that information is guilty of
an offence and liable on summary conviction to a fine not exceeding $5,000 or to
imprisonment for a term not exceeding 12 months, or to both.
241(1) Except as authorized by this section, no official shall
(a) knowingly provide, or knowingly allow to be provided, to any person any
taxpayer information;
(b) knowingly allow any person to have access to any taxpayer information; or
(c) knowingly use any taxpayer information otherwise than in the course of the
administration or enforcement of this Act, the Canada Pension Plan or the
Employment Insurance Act for the purpose for which it was provided under
this section.
APPENDIX D (Con't)
-13-
241(10) In this section,
"designated person" means any person who is employed in the service of, who occupies
a position of responsibility in the service of, or who is engaged by or on behalf of,
(a) a municipality in Canada, or
(b) a public body performing a function of government in Canada.,
or any person who was formerly so employed, who formerly occupied such a position
or who was formerly so engaged;
"official" means any person who is employed in the service of, who occupies a position
of responsibility in the service of, or who is engaged by or on behalf of,
(a) Her Majesty in right of Canada or a province, or
(b) an authority engaged in administering a law of a province similar to the
Pension Benefits Standards Act, 1985.
or any person who was formerly so employed, who formerly occupied such a position
or who was formerly so engaged.
APPENDIX D (Con't)
-142. INCOME TAX ACT (BC)
SECTIONS 64 AND 65
64. Communication of Information
(1)
A person who, while employed in the administration of this Act.
(a) knowingly communicates or knowingly allows to be communicated to any person
not legally entitled to it any information obtained by or on behalf of the Provincial
minister for the purpose of this Act,
(b) knowingly uses, other than in the course of the person's duties in connection with
the administration or enforcement of this Act, any information obtained by or on
behalf of the Provincial minister for the purpose of this Act,
is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000
or to imprisonment for a term not exceeding 12 months or to both a fine and
imprisonment.
(2) [Expections]
Subsection (1) does not apply to the communication of information between
(a) the minister and the Provincial minister, or
(b) the minister, acting on behalf of British Columbia, and the Provincial minister, the
Provincial Treasurer or the Provincial Secretary Treasurer of the government of
(i) an agreeing province, or
(ii) a non-agreeing province to which an adjusting payment may be made under
section 73(2).
(3) [Information-sharing agreement]
Subsection (1) does not apply to information disclosed in accordance with an
information-sharing agreement under section 65.
History
65. Information-sharing agreements
(1)
In this section, "information-sharing agreement" includes a data-matching agreement, but
does not include an agreement to share
APPENDIX D (Con't)
-15(a)
information obtained by the Provincial minister for the purpose of another Act
administered by that minister, or
(b)
information obtained by the Provincial minister under an agreement under this
section, except an agreement with the government of Canada relating to income
tax.
(2)
With the prior approval of the Lieutenant Governor in Council, the Provincial minister
may, for the purposes set out in subsection (3), enter into an information-sharing
agreement with any of the following:
(a)
the government of Canada or an agency of that government;
(b)
the government of a province or other jurisdiction in Canada or any agency of
that province or other jurisdiction;
(c)
a public body as defined in the Freedom of Information and Protection of Privacy
Act.
(3) [Idem]
An information-sharing agreement may be entered into for the purposes of
(a)
the administration of this Act, the Income Tax Act (Canada) or an Act of another
jurisdiction in Canada relating to income tax, or
(b)
the administration of a social benefit program operated by a government, agency
or public body referred to in subsection (2).
I
PAILIMA
Documents and
Printouts
Nor-removable
hard disks
F'KUL;tbS1111Li
1
• process
1
* process
1411AKKIPIti
b I UKAtit
2
* mark in the
upper right hand
corner on face of
cover page
• store in cabinet
equipped with a
padlock
2
* mark on casing
and outer container
when removed from
the computer
system
• logical access
controls (UserlD
and Password)
1
• process
2
' mark on casing
and outer container
• use 5.00 mm
strip cut shredder
ERASURE
non applicable
Electronic
Transmission
non applicable
COMMUNICATION
Facsimile
* use secure
facsimile devices
4
(e g. FAX Seciets)
3
encrypt
' physical access
controls to area
Removable
media such as
diskette; hard
disks; zip; jazz;
or Bernoulli
drives;
UtS I RUCTION
3
• encrypt and
store in lockable
containers
• magnetic media
mark on cartridge or
cassette
• diskette mark ' on
face of surface
• erase
• break/cut in
quarters
• grind surface of
the platter
• smash with
hammer or drill
holes in the platter
' discard if
3
encrypted
• over write
times (e g.
RCMP-DSX,
Norton's
WIPEDISK)
• erase
* break/cut in
quarters
' diskette cut in
1/2 inch stripes
- magnetic tapes
and cartridges cut
reels in half
' grind surface of
the platter
* smash with
hammer or drill
5
hole in the platter
• discard if
3
encrypted
• over write
times (e g
RCMP-DSX,
Norton's
WIPEDISK)
3
• encrypt data
• use secure
facsmile devices
4
(e g. FAX Secrets)
• approved
degausser
3
• encrypt data
non applicable
• approved
degausser
Mail
5
use two gumsealed envelopes
6
3
5
• encrypt and
package in a
solid container
designed for that
6
purpose
3
5
• encrypt and
package in a
solid container
designed for that
6
purpose
• diskettes
3
encrypt and use
5
two gum-sealed
envelopes (use a
diskette mailer as
the inner
* magnetic
tapes and
cartridges over
write times the
full length of the
tape
envelope)
Microfilms
1
• process
* area is to be
under
continuous
monitoring
2
• mark on cartridge
reel or cassette
• at the beginning
(header) and end
(trailer) of the film
• at the centre of
the top and bottom
of each individual
frame
• store in cabinet
equipped with a
padlock
• use 5.00 mm
strip cut shredder
non applicable
non applicable
non applicable
6
5
package in a
solid container
designed for that
6
purpose
I
SECURITY REQUIREMENTS FOR HANDLING REVENUE CANADA INFORMATION
MEDIA
Microfilms
PROCESSING
1
• process
• area is to be
under
continuous
monitoring
MARKING
2
• mark on each
fiche/frame
STORAGE
DESTRUCTION
ERASURE
APPENDIX D (Con's
Electronic
Transmission
COMMUNICATION
Facsimile
Mail
' store in cabinet
equipped with a
padlock
• use 5 00 mm
strip cut shredder
non applicable
non applicable
non applicable
5
use two gumsealed envelopes
6
3
• encrypt and
store in lockable
containers
• destroy the
microchip, mag
stripes, optical
zones, etc.. by
smashing,
breaking, cutting
or grinding the
data storage area
• over write
times (e.g.
RCMP-DSX,
Norton's
WIPEDISK)
3
• encrypt data
non applicable
3
• encrypt and
package
5
in a solid
container
designed for that
purpose
6
• erase
• break/cut in
quarters
• grind surface of
the platter
• smash with
hammer or drill
hole in the platter
• discard if
3
encrypted
• over write
times (e.g.
RCMP-DSX,
Norton s
WIPEDISK)
3
' encrypt data
• use secure
facsimile devices
3
• encrypt and
package
5
- the fiche # and
total # of fiche on
each fiche/frame
- at the header line
the centre of the top
and bottom of each
fiche/frame
1
• process
Local Area
Networks (LAN)
Server
1
• process
* area is to be
under
continuous
monitoring
2
• mark on outside
of the card
2
• mark on casing
and outer container
when removed from
the computer
system
logical access
controls (UserelD
and Password)
3
*encrypt
• physical access
controls for LAN
rooms or facilities
* approved
degausses
• approved
degausser
4
(e g. FAX Secrets)
in a solid
container
designed for that
purpose
6
on v o aul onz
in orma ion is o • - oroces - • in an area w ere access is imi
in•iv •ua s w o wor I ere an. o Drone v-esco
visr ors
ese areas are n
rnnni flr
regular basis. Audit trails of all accesses to client information is to be maintained (data elements: Identity of person, times and date of the access, and type of transaction made).
flr,
M
2 The marking designated "PROTECTED" is to appear at all times on all paper copies and the media.
3 Data encrypted under approved Revenue Canada algonthms can be treated as non-sensitive; from an availability and integrity point of view, on and off- site backups should be maintained and
physical security protection applied-
4 Revenue Canada FAX section devices on loan to an organization are to be located in areas where access is limited to authorized individuals and under continuous monitoring, the devices to
be set to a Protected Group # (defined by Revenue Canada), the secure FEDNET group is not permitted for non-federal organizations; support and maintenance of the devices is provided by
Revenue Canada; suspected or actual security incidents are to be immediately reported to the Revenue Canada security official
5 Send by priority courier, registered mail, or private courier Proof of mailing and a record of transit and del:very is to be provided by the courier
6 The address is to appear on both envelopes; the security marking is to appear on the inner envelope only marked To be opened by addressee on
plastic or metal ties so it cannot be opened unless it is broken, or with a padlock
i.vhen using solid containers secure with