Thank you for your answer. While it's comforting to know that the data is encrypted in storage when on Intuit's servers, it does not directly address my question I think.
Since I'm using the desktop version of TurboTax, the data is for now stored locally on my computer, not Intuit's servers. My question was whether or not by using the NETFILE functionality in TurboTax Premier, the tax files get sent directly to CRA and Revenu Québec servers without it having to go through Intuit's servers (or partners) at all. I'm assuming that under the hood the data is exported as XML files (or similar) which get transferred.
If I interpret, maybe what's implied by your answer is that it does go through Intuit's servers, though, even for the desktop software. (Obviously for the online version, the data is on Intuit's servers)
For context, I prefer having my data in as few places and shared as little as possible. Think of the leak at Desjardins in 2019 for example. This is why I bought the desktop version.
