The End to SIN Cards- Virtualizing Social Insurance Numbers

 

Quick History of Social Insurance Numbers in Canada

In the House of Commons in April, 1964, former Prime Minister- Lester B. Pearson announced that the government was introducing social insurance numbers (SIN). At the time, the need to introduce the SIN was for two reasons, according to a 1998 report by the auditor-general.

First, the Unemployment Insurance registration system was running out of numerical combinations to identify the clients. Second, the new Canada and Quebec Pension Plans required a national system to register and identify contributors and recipients. It was first suggested to call it the Canada Account Number but in the end it got called the Social Insurance Number.

The nine-digit combinations of the SIN were soon being used for a lot more, including for it be used as identification for tax returns and government programs both federally and provincially. Insurance companies and financial institutions began collecting them for tax purposes as well.

 

The End to SIN Cards

Just last month, in March 2014 , the government’s Service Canada has stopped issuing physical SIN cards. Now when one applies for their SIN they do not receive a physical plastic card but will only receive the numbers in the mail. An official from Service Canada said that cancelling the cards will save the Government of Canada about $1.5 million annually and claims it will protect Canadians from identity theft and fraud.

Today, SINs are required by Canadians to obtain employment and to access government programs and services such as welfare and unemployment along with many other services. Ultimately when Canadians obtain a SIN and start using it, it makes them obliged to file income tax and if they don’t file their taxes while they are obtaining an income with a SIN then they are in contravention of the Income Tax Act. Some have argued that having a SIN is unlawful because it coerces people into allowing the government to tax their income by consent but under duress.

There is no fee to get a SIN card but it costs $10 to replace one if it gets lost. Representatives of Service Canada told the C.A.N that they were told the decision to cancel the cards mainly had to do with too many people loosing them. But this move can make one ask their selves “is this part of a bigger agenda to harmonize everything with stealth”? What’s next, SIN’s programmed into our smart phones?