National Child Benefit Supplement

4-12 National Child Benefit Supplement


PURPOSE

1. To provide direction to staff for recovery of National Child Benefit Supplement payments made to applicants.

PRINCIPLES

2. Federal, provincial and territorial governments have agreed that the National Child Benefit Supplement (NCBS) component of the Canada Child Tax Benefit will be considered as income to Social Assistance applicants and the resulting savings are to be reinvested in social programs designed to decrease child poverty and promote labour force attachment.

3. Workers should be sufficiently familiar with the Canada Child Tax Benefit program that they can refer eligible persons to the program.

4. It should not be assumed that the applicant is aware of possible eligibility for the Canada Child Tax Benefit.

POLICY

5. The Canada Child Tax Benefit (CCTB) is comprised of two components: the Child Tax Benefit (CTB), which is exempt as income, and the National Child Benefit Supplement (NCBS), which is considered as income.

6. Information on actual benefits received by applicants shall be accessed through the information delivery system for verification.

7. Information on National Child Benefit Supplement benefits is updated monthly by Canada Revenue Agency. (CRA)

8. This information is provided under a Memorandum of Understanding (MOU) between the Government of Canada and the Government of Prince Edward Island. Confidentiality of the information obtained under this MOU must be safeguarded in accordance with the security policy of the Government of Canada, the Privacy Act (Canada), the Income Tax Act (Canada), and the Social Assistance Act (PEI). A summary of the guidelines for release of information and security and control is attached to this policy as Appendix “A”.

9. Staff will assist applicants to rectify discrepancies between recorded information and actual applicant circumstance.

PROCEDURE

10. Staff shall ensure all applicants with dependant children are aware of their responsibility to apply for the Canada Child Tax Benefit.

11. Underpayments and overpayments of National Child Benefit Supplement benefits will occur in certain circumstances (e.g. birth/death of a child, immigration from another province, change in family composition, etc.).

12. Underpayments in National Child Benefit Supplement will ultimately result in an overpayment of Social Assistance benefits. Calculation and recovery of overpayments shall be as specified in accordance with policy 7-2 (Overpayments) and policy 4-6-2 (Recovery of Retroactive Payments).

13. The National Child Benefit Supplement entitlement amount, not the amount actually received from Canada Revenue Agency, will be the amount used to determine eligibility (i.e. penalties imposed by Canada Revenue Agency for defaulted taxes, EI overpayments, etc. are not exempt).

14. Benefits may be paid based on the actual amount of National Child Benefit Supplement received only if there are extenuating circumstances justifying the applicant’s action, and with the approval of the regionally designated authority.

15. An applicant who is burdened with an unreasonably high federal overpayment recovery rate (e.g. EI, NCBS, etc.) shall attempt to negotiate a lower rate of recovery with appropriate federal officials.

16. In situations where the National Child Benefit Supplement amount deducted is greater than the National Child Benefit Supplement received, the applicant will be reimbursed, unless the amount of NCBS received is reduced due to “recovery” of federal overpayments.

CROSS REFERENCE

3-14 Change in Circumstances
4-6 Federal Income Programs
4-6-2 Recovery of Retroactive Payments
7-2 Overpayments



APPENDIX “A”


Release of Information to Prince Edward Island by Canada Revenue Agency (CRA)


A. Taxpayer Information Approved for Release

1. For purposes of the MOU between the Government of Canada and the Government of Prince Edward Island, all or a portion of the following information in respect of a taxpayer entitled to a NCBS payment may be given to the officials or designated persons by CRA’s agent. This information will be transferred solely for the purpose of making an adjustment to a Social Assistance payment, or to a payment made pursuant to a prescribed law of the province in respect of a child, based on the NCBS amount, with the provision that a Social Assistance application form has been completed and signed.

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 Marital status NCBS payment amount Client is in receipt of a contingency payment
Marital status Child birth dates June 1998 WIS* amount Spouse filing status
Number of children July 1998 hypothetical WIS** Client ineligible
Invalid address
Inhibit indicator


* WIS means Working Income Supplement.
**Hypothetical WIS means an amount the client would have received if the WIS calculation were still in effect.
This ensures affected clients do not receive less money than before.


2. The following taxpayer information may be transferred from CRA to the agent for those taxpayers who are eligible for the CCTB but not entitled to receive a NCBS amount. This information will be transferred solely for the purpose of making an adjustment to a Social Assistance payment, or to a payment made pursuant to a prescribed law of the province in respect of a child, based on the NCBS amount, with the provision that a Social Assistance application form has been completed and signed.



Client identification information Family Information Payment information Indicators
Name Tax year Income too high
Address June 1998 WIS* amount Client refusal
Date of birth July 1998 hypothetical WIS** Client filing status
SIN Client is in reciept of a contingency payment
Marital status Spouse filing status
Client ineligible
Invalid address
Inhibit indicator

* WIS means Working Income Supplement.
**Hypothetical WIS means an amount the client would have received if the WIS calculation were still in effect.
This ensures affected clients do not receive less money than before.


B. Mode of Transmission

The method of transmission will be dependent on the data transfer capabilities of Prince Edward Island. CRA has made available various transmission options for receipt of the information listed in section A. The appropriate security measures outlined below will be observed. Prince Edward Island may choose one of the following two methods for transmission of data to CRA’s agent in Prince Edward Island:

(1) Magnetic media - tape transfer;
(2) Electronic encrypted file transfer.


C. Distribution of Data

It is understood that NCBS information as outlined in section A, under the control of the agent for CRA, may be provided to or allowed to be accessed by designated persons or officials, solely for the purpose of making an adjustment to a Social Assistance payment, or to a payment made pursuant to a prescribed law of the province in respect of a child, based on the NCBS amount, provided a Social Assistance application form has been completed and signed. The appropriate security measures outlined below will be observed.



Security Details and Procedures

A. General Conditions

1. All information provided by CRA under the MOU will be maintained and accounted for by its agent and will be protected from disclosure under sections 239 and 241 of the federal Income Tax Act (Act).

2. All information provided by CRA’s agent under the MOU will be used by officials or designated persons for the sole purpose of allowing adjustments to Social Assistance payments as provided for under paragraph 241 (4) (j.1) of the Act, or to payments made pursuant to a prescribed law of the province in respect of a child, based on the NCBS amount, provided a Social Assistance application form has been completed and signed by the client.

3. Access to information provided by CRA to its agent under the MOU shall be controlled and limited to officials of Prince Edward Island or designated persons, or consultants hired by officials of Prince Edward Island or hired by designated persons who:

• have a job-related need-to-know; and
• have been briefed on the provisions of sections 239 and 241 of the Act with respect to the importance of maintaining the confidentiality of taxpayer information and on security measures to adequately safeguard the information.

4. The agent must safeguard all recorded and electronic information provided by CRA under the MOU by applying appropriate protective measures. The protective measures in place within CRA are available from the Director of Social Programs, Social Services. Similar protective measures must be used by the officials or designated persons.

B. Procedures

1. Any loss, suspected loss or unauthorized disclosure of or access to the information provided under the MOU must be reported immediately to the Director of Social Programs, Social Services. 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 and be forwarded to the Director of Social Programs, Department of Social Services, 2nd Floor, Jones Building, PO Box 2000, Charlottetown PE, C1A 7N8. 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 Director of Social Programs, Department of Social Services, should be notified if the information referred to in paragraph 1 of section B is subsequently found, including the circumstances under which it was found.

Income Tax Act (Canada)
Department of Social Services
Sections 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 or for the purpose for which it was provided under this section.

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.