16 Million Stolen Tax Files Spark an Uproar in Canada

TORONTO — Police questioned an employee of the government tax office today about the theft of personal records on 16 million Canadians, virtually every taxpayer in the nation.

The Oct. 30 theft, which was disclosed in Parliament only late Monday, outraged opposition legislators.

Although the records were returned about three hours after the disclosure, the theft raised fears that terrorists or criminals may have copied the data to use for obtaining false birth certificates or passports or to file fraudulent claims for welfare or pensions.

The bundle of tax records, about the size of a lunch bucket, consisted of 2,000 acetate microfiche cards, transparent 4-by-6 inch plastic sheets on which thousands of pages of information is stored.

The data includes names, addresses, birth dates, social insurance numbers, spouses’ names and details of income.

Opposition New Democratic Party leader Ed Broadbent demanded that Prime Minister Brian Mulroney’s Conservative government notify all taxpayers that their social security numbers may no longer be confidential.

Revenue Minister Elmer MacKay and Health Minister Jake Epp said the government might consider changing the numbers.

Royal Canadian Mounted Police said a Toronto lawyer returned the records after MacKay reported the theft in the House of Commons.

Toronto newspapers said the lawyer was acting for the suspect from the Revenue Canada tax office, who has been under interrogation for five days.

MacKay told Parliament he had ordered “an intensive review” of security, but he rejected calls for his resignation. The minister said he could not be responsible for every locked room and desk in his department.

Police said there was no sign of a break-in at the Toronto office of Revenue Canada, where officials spent nearly a week searching before they called police Nov. 4.

“The motivation might have been merely to do mischief or to damage the reputation of the department,” MacKay told Parliament.

“Or the purpose might have been to secure lists of taxpayers for commercial or more nefarious purposes. Or, it is conceivable that the intended use was to attempt to obtain money from the government by using the information for fraudulent purposes.”