ARCHIVED - Canada Revenue Agency
This page has been archived.
Archived Content
Information identified as archived on the Web is for reference, research or recordkeeping purposes. It has not been altered or updated after the date of archiving. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats on the "Contact Us" page.
Section II: Analysis of Program Activities by Strategic Outcome
Program Activity:
2.1 Taxpayer and Business Assistance (PA1)
Supports CRA strategic outcome: Taxpayers meet their obligations and Canada's revenue base is protected
Overview
The Taxpayer and Business Assistance program activity assists taxpayers, businesses, and registrants in meeting their obligations under Canada's self-assessment system, by providing accurate and timely responses to their enquiries. Taxpayers have access to the information they need through a variety of channels (e.g. our
Web site, telephones, paper publications, appointments, and outreach). In addition, we provide rulings and interpretations to clarify and interpret tax laws and to administer federal tax legislation governing registered plans and charities.
We carry out this program activity to achieve the following expected result:
- Taxpayers, businesses, and registrants receive timely, accurate, and accessible information
A Snapshot of Taxpayer and Business Assistance (PA1)
Figure 1 Resource Spending
In 2007-2008, spending for this program activity totalled $986 million (4,599
FTEs) or 22.3% of the
CRA's overall expenditures (
Figure 1).
[Footnote
1] Of this $986 million, $878 million was for net program expenditures and $108 million was allocated to this program activity for corporate services.
Notable Achievements by Sub-Activity
- Enquiries and Information Services – We handled more than 16 million public enquiries and over 14.7 million visits to tax-related information for individuals and businesses.
- Excise and GST/HST Rulings and Interpretations – We processed 4,170 written enquiries for rulings and interpretations, and handled almost 106,000 GST/HST-related technical telephone enquiries.
- CPP/EI Rulings – We processed 61,971 requests for rulings.
- Registered Plans – We administered approximately 32,000 plans, and conducted 461 audits.
- Charities – We administered more than 83,000 registered charities, processed 82,074 returns, and conducted 790 audits.
[Footnote 1] Spending and
FTE figures for sub-activities may not add up to this total due to rounding.
Contribution to Agency Priority
Enhance Service Delivery for Canadians
In support of this priority, in 2007-2008 we accomplished the following:
As identified in our Corporate Business Plan 2007-2008 to 2009-2010
|
|
Implement channel convergence
|
We expanded our Smartlinks initiative to include both individual and business call centres.
|
Our Smartlinks service aligns telephone and Internet service delivery channels by linking users of our Web site tax information for individuals and businesses to our telephone service. Real-time user feedback helps us identify problems and improve Web content. In 2007-2008, in response to enquiries we received, we expanded our
Smartlinks service by adding new links to selected Web pages for individuals. This program encourages the use of the CRA Web site as a self-service information resource for taxpayers.
|
Enhance taxpayer service on the Internet
|
Enhancements to the Web site were implemented, based on taxpayers feedback.
|
The number of visits to the pages of our Web site regarding tax information for individuals and businesses continues to climb, with more than 14.7 million visits in 2007-2008. We believe that the increased traffic is the result of the enhancements made to our Web site.
|
Enhance targeting and customization of outreach programs and expand taxpayer consultation efforts
|
Our outreach activities increase our visibility in the community. We undertook the following:
|
- we conducted 1,287 outreach events, involving more than 58,000 participants, to provide information on benefits and entitlements to individuals such as current and potential child benefit recipients, students, and newcomers to Canada; and
|
- we presented approximately 1,200 outreach events for businesses—involving close to 30,000 participants—to support the business community by facilitating compliance for such groups as small businesses, GST/HST/PST registrants, and potential business e-service users.
|
Strengthen the charities program; continue the implementation of a risk-based approach to registering plans; and fully implement the Softwood Lumber Products Export Charge Act, 2006
|
- Improved our Charities Web site;
|
- Delivered 85 charity information sessions;
|
- Completed our review of the registration and amendment processes for all types of registered plans, using a risk-based approach;
|
- Issued to the provinces the first two quarterly payments of softwood lumber export charge revenues in January and March 2008; and
|
- Made 578 visits to provide information sessions to exporters of softwood lumber products.
|
Performance Report Card
|
|
|
|
|
Taxpayers, businesses, and registrants receive timely, accurate, and accessible information
|
|
|
|
|
|
|
|
Timely Information
|
|
|
|
|
|
|
|
|
General calls answered within two minutes of entering the queue
|
|
|
|
|
|
|
|
Business calls answered within two minutes of entering the queue
|
|
|
|
|
|
|
|
Charities calls answered within two minutes of entering the queue
|
|
|
|
|
|
|
|
Legislative changes reflected in information to the public in a timely manner
|
|
|
|
|
|
|
|
Respond to written requests for GST/HST rulings and interpretations within 45 working days of receipt of request
|
|
|
|
|
|
|
|
Average number of days to issue an income tax technical interpretation to taxpayers
|
|
|
|
|
|
|
|
Average number of days to issue an advance income tax ruling to taxpayers
|
|
|
|
|
|
|
|
Percentage of CPP/EI rulings issued within targeted time frames
|
|
|
|
|
|
|
|
[Footnote 1] This service standard is being increased to 80% for 2008-2009.
[Footnote 2] This became a service standard in 2006-2007. Prior year results reflect performance against an internal performance target.
Accurate Information
|
|
|
|
|
|
|
|
|
Level of agent accuracy relative to the 1996-1997 baseline year
|
|
|
|
|
|
|
|
Accessible Information
|
|
|
|
|
|
|
|
|
General callers that reach our telephone service
|
|
|
|
|
|
|
|
Business callers that reach our telephone service
|
|
|
|
|
|
|
|
Charities callers that reach our telephone service
|
|
|
|
|
|
|
|
Enhancement of our alternative information sources to expand the range and accuracy of communications products
|
|
|
|
|
|
|
|
Program Activity:
2.2 Assessment of Returns and Payment Processing (PA2)
Supports CRA strategic outcome: Taxpayers meet their obligations and Canada's revenue base is protected
Spending Profile: (thousands of dollars)
|
|
|
|
|
|
|
|
|
Overview
We undertake a wide range of activities to process individual and business tax returns and payments, including the use of risk assessment, third-party data matching, and information validation to detect and address non-compliance. Our programs contribute to individuals and businesses meeting their filing and payment obligations.
We carry out our Assessment of Returns and Payment Processing program activity to achieve two expected results:
- assessment and payment processing are timely and accurate; and
- reporting non-compliance is detected and addressed.
A Snapshot of Assessment of Returns and Payment Processing (PA2)
Figure 2 Resource Spending
In 2007-2008, spending for this program activity totalled $871 million (8,638
FTEs) or 19.7% of the
CRA's overall expenditures (
Figure 2).
[Footnote 1]
Of this $871 million, $631 million was for net program expenditures, and $240 million was allocated to this program activity for corporate services.
Notable Achievements by Sub-Activity
- Individual Returns Processing – We processed more than 25 million individual returns; refunded $21.8 billion to nearly 16 million individual taxpayers; and processed over 194,000 T3 trust returns. There were almost 314,000 additional individuals
enrolled and almost 3.3 million visits to My Account.
- Business Returns Processing – We processed almost 1.6 million information returns, almost 1.8 million corporate returns, and over 58,000 Excise and Other Levies returns. We processed more than 36.4 million payments, totalling almost $372 billion.
[Footnote 1] Spending and
FTE figures for sub-activities may not add up to this total due to rounding.
Contribution to Agency Priority
Enhance Service Delivery for Canadians
In support of this priority, in 2007-2008 we accomplished the following:
As identified in our Corporate Business Plan 2007-2008 to 2009-2010
|
|
Implement the redeveloped GST/HST system
|
We implemented the new GST/HST system.
|
The GST/HST redesign system release, which involved the implementation of a number of new systems and major revisions to existing systems, is designed to simplify tax compliance for businesses by harmonizing various accounting, penalty and interest system
processes.
|
Provide enhanced Internet services
|
- We introduced Quick Access, a new complementary online service to My Account;
|
- we enhanced My Account and our Represent a client service; and
|
- we enhanced My Business Account to provide more flexibility to businesses in managing their affairs online.
|
In February 2008, we launched Quick Access, a new complementary online service to My Account that enables individuals to view basic tax related information. This service gives individuals certain personal tax and benefit account information currently available in My Account without having to register for a Government of
Canada epass. This feature provides taxpayers with quicker access to more common queries such as tax return status, GST/HST credit payment status, Registered Retirement Savings Plan deduction limits, and the status of benefit payments.
|
Since February 2006, our Represent a client service has provided tax representatives with access to online services. In October 2007, this service was expanded to provide representatives, including employees of a business, with more services and information. Represent a client gives representatives a secure, single point of
access to multiple clients' information.
|
We expanded our online services to meet the growing expectation of business owners for convenient and secure online services. In response to action items identified in the March 2007 Report of the Canada Revenue Agency's Action Task Force on Small Business Issues, we made enhancements to
My Business Account to ensure that businesses have access to personalized tax account information to suit their needs. My Business Account now includes options for businesses to authorize, update, or delete a representative's authorization, which provides the representative with the tools to manage online their authorized taxpayer's business accounts.
|
Focus on business opportunities
|
We implemented Business Number agreements for the following three provincial programs:
|
- Occupational Health and Safety Nova Scotia;
|
- Mining Tax and Tobacco Tax in Manitoba; and
|
- Food Primary Liquor Licence in British Columbia.
|
In addition to the latest three agreements, we have established Business Number partnership agreements with four provinces, covering 48 provincial business programs. We are also working with Service Ontario to develop a joint Business Number process for some of the province's business programs.
|
Performance Report Card
|
|
|
|
|
Assessment and payment processing are timely and accurate
|
|
|
|
|
|
|
|
Timely Processing
|
|
|
|
|
|
|
|
|
External Service Standards
|
Processing T1 individual income tax returns (paper) within four to six weeks
|
|
|
|
|
|
|
|
Processing T1 individual income tax returns (electronic) within two weeks
|
|
|
|
|
|
|
|
Percentage of GST/HST returns processed within 21 days
|
|
|
|
|
|
|
|
Processing T2 corporation income tax returns within 60 days
|
|
|
|
|
|
|
|
Providing Statements of Interim Payments (SIP) to T2 Corporation Income Tax/ GST/HST taxpayers on a monthly basis.
|
|
|
|
|
|
|
|
Processing T3 trust returns within four months
|
|
|
|
|
|
|
|
Responding to taxpayer-requested adjustments ( T1) received via the Internet within two weeks
|
|
|
|
|
|
|
|
Responding to taxpayer-requested adjustments ( T1) within eight weeks
|
|
|
|
|
|
|
|
Internal Performance Standards
|
Percentage of funds from non-electronic payments deposited within 24 hours of receipt
|
|
|
|
|
|
|
|
Percentage of Business Number registrations processed within 10 working days
|
|
|
|
|
|
|
|
T1 returns received on time processed by mid-June
|
|
|
|
|
|
|
|
Percentage of T4 information returns processed by April 30
|
|
|
|
|
|
|
|
Percentage of T5 returns processed by May 31
|
|
|
|
|
|
|
|
Electronic Processing Take-up
|
Percentage of individual filers who file electronically
|
|
|
|
|
|
|
|
Percentage of eligible corporations that file electronically
|
|
|
|
|
|
|
|
Electronic filing take-up rates of other types of returns ( T4 and GST/HST)
|
|
|
|
|
|
|
|
[Footnote 1] Represents the average number of weeks to process
T1 individual returns – paper.
[Footnote 2] Represents the average number of weeks to process
T1 individual returns – electronic.
[Footnote 3] Final results not available at time of printing due to problems with the
GST/HST system reports.
[Footnote 4] Revised indicator and target for 2007-2008. Combined two previous indicators and targets for
T2 processing workload.
Accurate Processing
|
|
|
|
|
|
|
|
|
Percentage of T1 returns assessed accurately
|
|
|
|
|
|
|
|
Taxpayer-requested adjustments are reassessed accurately
|
|
|
|
|
|
|
|
|
|
|
|
|
Reporting non-compliance is detected and addressed
|
|
|
|
|
|
|
|
Detecting Non-Compliance
|
|
|
|
|
|
|
|
|
Ratio of average dollars recovered – targeted versus random reviews
|
|
|
|
|
|
|
|
Addressing Non-Compliance
|
|
|
|
|
|
|
|
|
Additional tax assessed through pre-assessment reviews (millions)
|
|
|
|
|
|
|
|
Additional tax assessed through T1 Matching post-assessment reviews (millions)
|
|
|
|
|
|
|
|
Additional tax assessed through Processing Review post-assessment reviews (millions)
|
|
|
|
|
|
|
|
Program Activity:
2.3 Accounts Receivable and Returns Compliance (PA3)
Supports CRA strategic outcome: Taxpayers meet their obligations and Canada's revenue base is protected
Spending Profile: (thousands of dollars)
|
|
|
|
|
|
|
|
|
Overview
We manage the federal government's largest debt collection service, managing debts arising from income tax, GST/HST, the Canada Pension Plan, Employment Insurance, and defaulted Canada student loans. In working with Canadians both to resolve their debt issues and to
promote compliance with tax legislation governing employers, payroll, and the GST/HST, we help protect Canada's revenue base.
We carry out our Accounts Receivable and Returns Compliance program activity to achieve two expected results:
- tax and non-tax debt are resolved on a timely basis and are within targeted levels; and
- reporting non-compliance is detected and addressed.
A Snapshot of Accounts Receivable and Returns Compliance (PA3)
Figure 3 Resource Spending
In 2007-2008, spending for this program activity totalled $695 million (8,855
FTEs) or 15.7% of the
CRA's overall expenditures (
Figure 3).
[Footnote 1] Of
this $695 million, $490 million was for net program expenditures, and $205 million was allocated to this program activity for corporate services.
Notable Achievements by Sub-Activity
- Accounts Receivable – TSO cash collections totalled $11.9 billion. The National Collections Call Centre actions resulted in total payment arrangements of close to $1.4 billion. National Pools actions resulted in cash collections of more than
$1.3 billion. Cash Collections from large accounts totalled over $3.9 billion.
- Trust Accounts – More than 761,000 returns were obtained from individuals and corporate taxpayers who had not filed their returns, over 8,660 GST/HST non-registrants were identified, and 666,770 occurrences of payroll
non-compliance were addressed. Our Contract Payment Reporting Initiative secured a total of 57,689 additional individual and corporate tax returns.
[Footnote 1] Spending and
FTE figures for sub-activities may not add up to this total, due to rounding.
Contribution to Agency Priority
Address Specific Compliance Challenges
In support of this priority, in 2007-2008 we accomplished the following:
As identified in our Corporate Business Plan 2007-2008 to 2009-2010
|
|
Maintain strong core business
|
- We enhanced and improved workload processes and technological innovation;
|
- we implemented our insolvency strategy; and
|
- we continued with our instalment campaign.
|
We built on the successes of our National Collections Call Centre, our GST/HST, T1 National workload initiatives, and our instalment campaign. Specifically, we implemented our
national insolvency strategy and established collections centres of expertise to address debt arising from international tax planning and tax avoidance schemes.
|
Implement business transformation
|
We began the rollout of our Integrated Revenue Collections initiative.
|
In March 2007, we completed the development of our Individual Tax Debtor Research Model, which will allow us to better understand the make-up of tax debt and establish profiles for individual debtors.
|
Expand business opportunities
|
We further integrated collection operations from HRSDC.
|
Our non-tax collections work focuses on collecting EI overpayments, defaulted Canada Student Loans, CPP overpayments, and other debts on behalf of Human Resources and Social Development Canada. During 2007-2008, we exceeded established objectives, collecting $614.7 million, or $48.6 million more than our target.
|
To maintain our success in delivering collections services for our government clients, we work closely with client collections areas to create a more efficient workplace. We are working toward an integrated taxpayer-centred approach, aimed at modernizing processes and facilitating the integration of tax and other
government programs' debt workloads. This approach will allow for greater efficiency and flexibility in collecting debts that arise from various sources.
|
Performance Report Card
|
|
|
|
|
Tax and non-tax debt are resolved on a timely basis and are within targeted levels
|
|
|
|
|
|
|
|
Timely Resolutions of Tax Debt
|
|
|
|
|
|
|
|
|
Percentage of intake resolved in the year of intake
|
|
|
|
|
|
|
|
Tax and Non-Tax Debt Are Within Targeted Levels
|
|
|
|
|
|
|
|
|
Dollar value of TSO production as a percentage of dollar value of TSO intake of new accounts receivable
|
|
|
|
|
|
|
|
Accounts receivable over five years old as a percentage of total
|
|
|
|
|
|
|
|
TSO cash collections (billions)
|
|
|
|
|
|
|
|
Non-tax debt – Dollars collected (millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Reporting non-compliance is detected and addressed
|
|
|
|
|
|
|
|
Dollar Value of Non-Compliance
|
|
|
|
|
|
|
|
|
Employer/payroll/ GST/HST non-compliance (billions)
|
|
|
|
|
|
|
|
T1/ T2 Non-filers/ GST/HST Non-registrant non-compliance (billions)
|
|
|
|
|
|
|
|
[Footnote 1] Current targets and results for 2007-2008 have been adjusted to remove
GST/HST amounts.
Program Activity:
2.4 Reporting Compliance (PA4)
Supports CRA strategic outcome: Taxpayers meet their obligations and Canada's revenue base is protected
Spending Profile: (thousands of dollars)
|
|
|
|
|
|
|
|
|
Overview
It is our strategy to detect non-compliance, take appropriate action, and deter future non-compliance through audit and enforcement activities, as well as through education. Our activities benefit all Canadians by contributing to the protection of Canada's tax base.
We carry out our Reporting Compliance activities to achieve the expected result stated below.
- reporting non-compliance is detected and addressed
A Snapshot of Reporting Compliance (PA4)
Figure 4 Resource Spending
In 2007-2008, spending for this program activity totalled $1.3 billion (12,831
FTE's) or 30.2% of the CRA's overall expenditures (
Figure 4).
[Footnote 1] Of this $1.3 billion, $981 million was for net
program expenditures, and $353 million was allocated to this program activity for corporate services.
Notable Achievements by Sub-Activity
- International and large businesses – We conducted about 27,400 audits, resulting in a fiscal impact of $5.7 billion.
- Small and medium-sized enterprises – We conducted about 321,500 audits and examinations, resulting in a fiscal impact of about $2.1 billion.
- Enforcements and disclosures – We conducted more than 1,100 audits under the Special Enforcement Program, identifying $82.2 million in additional tax owing. We also conducted 180 income tax and GST/HST investigations under the
Criminal Investigations Program.
- Scientific Research and Experimental Development Program – This program provides more than $4 billion in tax credits to almost 18,000 claimants.
[Footnote 1] Spending and
FTE figures for sub-activities may not add up to this total due to rounding.
Contribution to Agency Priority
Address Specific Compliance Challenges
In support of this priority, in 2007-2008 we accomplished the following:
As identified in our Corporate Business Plan 2007-2008 to 2009-2010
|
|
Assess risk and detect non-compliance
|
Targeted reviews were more effective than random reviews.
|
Our measure of success in the assessment of risk is the activity improvement ratio. Stated simply, this is a comparison of the rate of reporting non-compliance in targeted audits of industry sectors in the small and medium-sized enterprise population compared with
random audits of this same population.
|
Implement the action plan to counter aggressive tax planning
|
The identification of unacceptable tax shelters and tax evasion schemes demonstrated our success in addressing aggressive tax planning.
|
In addition, a number of charities' registrations were revoked for participating in these schemes. In August 2007, we issued a Tax Alert to remind Canadians that the CRA is reviewing all tax shelter-related donation arrangements (for example, schemes that typically promise
donors tax receipts worth more than the actual amount of the donation). As a means to reduce the number of participants in these schemes, a copy of the Tax Alert was included in a mailing to over 65,000 individuals who had participated in these shelters in 2005 and 2006, and whose donations were currently being reviewed by the CRA. We believe that the nearly 30% reduction in 2007 in participation in tax shelter gifting arrangements demonstrates the success of our efforts to detect, address, and prevent non-compliance in this area.
In November 2007, a Tax Alert was issued regarding tax schemes that promised “tax-free withdrawals” from RRSPs and RRIFs. The CRA warned that not only would investors risk a reassessment of their tax return for the value of the funds withdrawn, but also that
investing in such schemes could result in the loss of retirement savings to unscrupulous promoters. Audits related to these schemes continue.
|
The CRA's 11 Centres of Expertise continue to play a major role in identifying aggressive tax planning schemes and developing new sources of information that can be integrated into the CRA's risk assessment models.
These Centres, located in local tax services offices, bring together audit professionals and specialists in international tax and tax avoidance. Working in teams, they define the scope and nature of abusive international transactions and other aggressive tax planning schemes. They also determine who participates in and promotes such schemes, and how to identify
them. More than 50 projects are underway, with the potential for significant tax recoveries.
|
Continue our efforts to address inter-provincial tax avoidance
|
We worked with provincial and territorial governments as well as tax intermediaries in order to promote compliance and shut down abusive schemes.
|
We made significant progress in combating aggressive provincial tax avoidance schemes. Working with provincial counterparts in Alberta, Ontario, and Quebec, we recovered over $120 million in taxes from individuals in various unacceptable arrangements.
|
The CRA continues to pursue abusive transactions using the General Anti-Avoidance Rule (GAAR). For example, schemes such as “artificial capital losses” are promoted throughout the country; since inception in 2003, the CRA has denied more than $2 billion in cumulative losses claimed under these schemes.
|
Implement the action plan to counter aggressive international tax planning schemes
|
We increased audit and enforcement activities in the international tax segment.
|
In 2007-2008, the CRA finalized its international compliance strategy. We committed to strengthening our relationships with international administrations and work to mitigate the risks of non-compliance arising from the growing number of financial transactions that cross
borders.
|
The CRA worked closely with a number of international partners in identifying Canadian residents that used tax havens to avoid their fiscal responsibilities. Reviews of the taxpayers involved are in progress. In February 2008, the CRA issued a Tax Alert reminding Canadians that those who use tax havens to hide assets or avoid taxes should know that the CRA is working with international partners to address tax avoidance and evasion to ensure that Canadians are accurately reporting their income and paying tax.
|
Increase our understanding of the underground economy
|
We evaluated the results of our pilot projects and teamed with provincial and territorial partners to increase our understanding of the underground economy (UE).
|
This past year, over 1,000 CRA employees worked full time on identification, audit, or enforcement activities to address the underground economy. We also work on an ongoing basis with Canada's provinces, territories, and other federal agencies and departments to better identify
those participating in the underground economy. The Federal/Provincial/Territorial UE Working Group continues to explore new opportunities to jointly address the UE through research studies, information sharing, and cooperative approaches.
|
We initiated research to assess the trends of the UE and risk factors in the construction and hospitality industries. The objectives will be accomplished through a review of UE related literature, and the identification and evaluation of risk indicators as a determinant of UE in the construction and hospitality industries.
|
Continue efforts to counter GST/HST fraud
|
We evaluated the results of our pilot projects and re-engineered the GST/HST High Risk Analysis Team program.
|
The results of these pilot projects enhanced our understanding of whether or not registrants filing credit returns in these sectors are engaged in a legitimate commercial activity and entitled to refunds.
|
We researched the effectiveness of our GST/HST programs and learned that the built-in fairness of our programs must be accompanied with appropriate vigilance to effect valuable program refinements. In particular, with changes that were made, we were able to enhance our recoveries for non-resident accounts. We also
improved our rate of recovery through field visits to new registrants and through the review of our prepayment audit selection criteria.
|
Performance Report Card
|
|
|
|
|
Reporting non-compliance is detected and addressed
|
|
|
|
|
|
|
|
Internal Performance Indicators
|
|
|
|
|
|
|
|
|
Internal performance estimates
|
Number of files audited as a percentage of estimate:
|
- International and large businesses
|
|
|
|
|
|
|
|
- Small and medium-sized enterprises
|
|
|
|
|
|
|
|
Number of outreach activities completed
|
|
|
|
|
|
|
|
[Footnote 1] Due to the unique nature of outreach activities, the methodology for establishing targets was under revision in 2007-2008.
Effective Assessment of Risk and Detection of Reporting Non-Compliance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of risk-based reviews resulting in detection of reporting non-compliance
|
|
|
|
|
|
|
|
[Footnote 1] While we do not review all audit sectors each year, results to date indicate that targeted audits are significantly better at detecting reporting non-compliance than are random audits in all sectors.
[Footnote 2] This year, the Core Audit Program (CAP) sampled specific categories in the
T1 population for the first time.
The VDP is administered in a consistent manner
In 2007-2008, VDP goals, objectives and performance measurements and indicators were developed. These performance measurements and indicators will be used in future reporting periods.
Program Activity:
2.5 Appeals (PA5)
Supports CRA strategic outcome: Taxpayers meet their obligations and Canada's revenue base is protected
Spending Profile: (thousands of dollars)
|
Total Authorities
2007-2008
|
|
|
|
|
|
|
|
Overview
Our Appeals program activity administers one of the Government of Canada's largest dispute resolution services. We strive to provide taxpayers with a fair and timely dispute resolution process that respects Canadians' fundamental rights to redress in their dealings with Canada's tax system.
Taxpayers can dispute assessments and determinations pertaining to income tax and commodity taxes, as well as CPP/EI assessments and rulings. If taxpayers are not satisfied with the results of our review process, they can then appeal to the courts.
This program activity also manages the administration of the Taxpayer Relief Provisions, as well as our Taxpayer Service Complaints Program.
We carry out the Appeals program activity to achieve the following expected result:
- Taxpayers receive an impartial and timely review of contested decisions
A Snapshot of Appeals (PA5)
Figure 5 Resource Spending
In 2007-2008, spending for this program activity totalled $156 million (1,490
FTE's) or 3.5% of the
CRA's overall expenditures (
Figure 5).
[Footnote 1] Of this
$156 million, $121 million was for net program expenditures, and $35 million was allocated to this program activity for corporate services.
Notable Achievements by Sub-Activity
- Appeals – We resolved about 65,700 disputes, representing $3.06 billion in taxes. About 80,500 disputes remain in workable and non-workable inventory, totalling more than $10.2 billion in taxes.
- Taxpayer Relief Provisions – About 54,400 requests for relief from interest and penalties were processed by the CRA. Approximately 29,600 of these requests were allowed in full or in part, in favour of the taxpayer. The total value of all
cancellations and waivers was more than $617 million for over 341,000 taxpayers.
- Service Complaints – More than 1,400 service complaints were processed.
[Footnote 1] Spending and
FTE figures for sub-activities may not add up to this total, due to rounding.
Contribution to Agency Priority
Enhance trust in Canada's tax administration by formalizing the process for resolving service-related complaints
In support of this priority, in 2007-2008 we accomplished the following:
As identified in our Corporate Business Plan 2007-2008 to 2009-2010
|
|
Improve consistency in the agency-wide administration of the Taxpayer Relief Provisions
|
The implementation of our new Taxpayer Relief Provisions administrative system has been delayed until April 2009.
|
Originally scheduled for implementation in 2007-2008, the release is now scheduled for April 2009. The new system will better track and manage requests for Taxpayer Relief Provisions throughout our organization to improve our reporting and analysis capabilities. This will ultimately provide Canadians with enhanced consistency
in the management of Taxpayer Relief Provisions.
|
Review and strengthen core business processes and operations
|
- We improved management of our CPP/EI dispute resolution activities; and
|
- Enhanced dispute workload management.
|
The average time to resolve CPP/EI files decreased from 203 days in 2006-2007 to 123 days in 2007-2008. Our CPP/EI dispute resolution results benefited both from the 24% reduction in intake from 2006-2007 and from increased Government of Canada
funding to address this work. The average age of the workable inventory was also reduced to 70 days from the 80 days in 2006-2007.
|
Performance Report Card
|
|
|
|
|
Taxpayers receive an impartial and timely review of contested decisions
|
|
|
|
|
|
|
|
Impartiality
|
|
|
|
|
|
|
|
|
Appeals activities that met internal standards for consistency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appeals activities that met internal standards for transparency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timeliness
|
|
|
|
|
|
|
|
|
Service standard for initial contact
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average age of workable inventory
|
|
|
Neutral or downward trend
|
|
|
|
|
|
|
|
|
Neutral or downward trend
|
|
|
|
|
|
|
|
|
Neutral or downward trend
|
|
|
|
|
|
|
[Footnote 1] The overall rating is based on whether or not results were achieved against established targets for the combined workloads.
Program Activity:
2.6 Benefit Programs (PA6)
Supports CRA strategic outcome: Eligible families and individuals receive timely and correct benefit payments
Spending Profile: (thousands of dollars)
|
|
|
|
|
|
|
|
|
Overview
Our Benefit Programs activity contributes directly to the economic and social well-being of Canadians. We accomplish this by delivering income-based and other benefits, credits, and services to eligible residents for federal, provincial, and territorial governments.
We administer three core federal programs that issue benefit payments:
- the Canada Child Tax Benefit (CCTB);
- the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit; and
- Children's Special Allowances (CSA).
We also deliver the Universal Child Care Benefit (UCCB) on behalf of Human Resources and Social Development Canada, the Disability Tax Credit (DTC), as well as numerous ongoing and one-time benefit and credit programs and services on behalf of provincial, territorial, and other federal government clients. Our ability to deliver efficient,
timely, and accurate programs and services makes us a valuable partner for government clients.
We carry out our Benefit Programs activity to achieve two expected results:
- benefit recipients receive timely, accurate, and accessible information; and
- eligibility determination and payment processing are timely and accurate.
A Snapshot of Benefit Programs (PA6)
Figure 6 Resource Spending
In 2007-2008, spending for this program activity totalled $381 million (1,942 FTE's) or 8.6% of the
CRA's overall expenditures (
Figure 6).
[Footnote 1] Of this $381 million, $323 million was for
net program expenditures, and $58 million was allocated to this program activity for corporate services.
Notable Achievements by Sub-Activity
- Benefit Programs Client Services – We handled almost 6.3 million telephone enquiries.
- Benefit Programs Administration – We issued 88.5 million benefit payments, totalling $16.0[Footnote 2] billion to more than 11 million recipients. We determined $667 million in Disability Tax Credit entitlements for almost 499,000 individuals.
We processed over 702,000 applications and marital status change forms, over 688,000 account maintenance adjustments, and almost 1.2 million in-year GST/HST credit account redeterminations.
- Direct transfer payments under statutory programs – We issued more than $208 million under the Children's Special Allowances (CSA) program and just under $1 million under the Energy Cost Benefit program.
[Footnote 1] Spending for
FTE figures for sub-activities may not add up to this total due to rounding.
[Footnote 2] Including the $667 million in entitlements to the
DTC program, which are delivered through the
T1 assessing process, rather than as direct cash payments, the total amount of benefits and credits issued is
almost $16.7 billion.
Contribution to Agency Priorities
Ensure timely benefit payments
Ensure accurate benefit payments and strengthening compliance
Ensure that CRA is a key service provider
In support of these priorities, in 2007-2008 we accomplished the following:
As identified in our Corporate Business Plan 2007-2008 to 2009-2010
|
|
Ensure timely, accurate, and accessible information and services to benefit recipients
|
- We implemented and met a new service standard for the timeliness of CCTB telephone enquiries;
|
- Enhanced My Account and promoted usage;
|
- Implemented Disability Tax Measures Initiative recommendations; and
|
- Launched the facility for online child benefit applications.
|
Internal resource reallocations were made, which allowed us to meet our accessibility targets for CCTB enquiries, and improve our accessibility performance on GST/HST credit telephone enquiries. As a
result, during 2007-2008, 87% of CCTB callers were successful in reaching our telephone service, as were 83% of GST/HST credit callers. As noted for other enquiry lines, there were concerns that the accessibility target (80%)
for our telephone services was not high enough to satisfy the needs of CCTB recipients. Our caller accessibility targets have been increased to 90% for 2008-2009 to better meet the needs of Canadians.
|
The number of visits to My Account Benefits pages increased from 6.2 million in 2006-2007 to 7.6 million in 2007-2008. We enhanced our Web site to give recipients additional electronic access to information and services. One of these enhancements was the addition of new features to My Account, particularly for
the DTC. In addition, we implemented an online child benefit application facility in July 2007. It was well received, as evidenced by the more than 15,000 applications submitted through this service.
|
Ensure timely and accurate processing of benefit payments, applications, and other transactions
|
- We enhanced and modernized critical automated systems; and
|
- Introduced and met new service standards for accuracy of processing applications, marital status change forms, and account maintenance adjustments.
|
Ensure benefits compliance
|
- We implemented recommendations from the Compliance Strategy;
|
- Enhanced compliance awareness; and
|
- Developed a measurement sample for the GST/HST credit program.
|
During 2007-2008, we worked to strengthen our benefits compliance rate by implementing elements of our long-term compliance strategy. For example, to enhance front-end detection of non-compliance, our staff at each Tax Centre received training on fraud detection and awareness. As a deterrent to non-compliance, we
published compliance-oriented fact sheets and distributed news releases.
|
Performance Report Card
|
|
|
|
|
Benefit recipients receive timely, accurate, and accessible information
|
|
|
|
|
|
|
|
Timely Information
|
|
|
|
|
|
|
|
|
CCTB calls answered within two minutes of entering the queue
|
|
|
|
|
|
|
|
GST/HST credit calls answered within two minutes of entering the queue
|
|
|
|
|
|
|
|
Accurate Information
|
|
|
|
|
|
|
|
|
Range and accuracy of communications products
|
|
|
|
|
|
|
|
Accessible Information
|
|
|
|
|
|
|
|
|
CCTB callers that reach our telephone service
|
|
|
|
|
|
|
|
GST/HST credit callers that reach our telephone service
|
|
|
|
|
|
|
|
Take-up of Change My Address service (thousands of users)
|
|
|
|
|
|
|
|
Take-up of Child and Family Benefits Web page (millions of views)
|
|
|
|
|
|
|
|
Take-up of CSA on the Web service (use by agencies)
|
|
|
|
|
|
|
|
|
|
|
|
|
Eligibility determination and payment processing are timely and accurate
|
|
|
|
|
|
|
|
Timely Eligibility Determination and Payment Processing
|
|
|
|
|
|
|
|
|
Percentage of benefit applications and marital status change forms processed on time
|
|
|
|
|
|
|
|
Level of satisfaction with application processing time
|
|
|
|
|
|
|
|
Percentage of account maintenance adjustments processed on time
|
|
|
|
|
|
|
|
Accurate Eligibility Determination and Payment Processing
|
|
|
|
|
|
|
|
|
Percentage of accurate payments when processing benefit applications and marital status change forms
|
|
|
|
|
|
|
|
Percentage of accurate payments when processing account maintenance adjustments
|
|
|
|
|
|
|
|
CCTB overpayment debt as a percentage of payments issued
|
|
|
|
|
|
|
|
Percentage of CCTB accounts reviewed
|
|
|
|
|
|
|
|
Percentage of CCTB accounts reviewed that were adjusted
|
|
|
|
|
|
|
|
Dollar value of validation adjustments (identified overpayments)
|
|
|
|
|
|
|
|
Dollar value of validation adjustments (identified underpayments)
|
|
|
|
|
|
|
|
Program Activity:
2.7 Corporate Services (PA7)
Overview
To ensure that the CRA's tax and benefit services have the guidance, infrastructure, and resources needed for successful delivery, our interrelated human resources, information technology, and other management strategies must be fully integrated. During 2007-2008, we made key investments in our
infrastructure to enhance our effectiveness. We were also active in modernizing our service delivery to take advantage of emerging technology while continuing to develop a knowledgeable, professional, and values-driven workforce.
Statement of Management Responsibility
We have prepared the accompanying financial statements of the Canada Revenue Agency according to the accounting principles consistent with those applied in preparing the financial statements of the Government of Canada. Significant accounting policies are set out in Note 2 to the financial statements. Some of the information included in
the financial statements, such as accruals, and the allowance for doubtful accounts, is based on management's best estimates and judgments with due consideration to materiality. The Agency's management is responsible for the integrity and objectivity of data in these financial statements. Financial information submitted to the Public Accounts of Canada and included in the
Agency's Annual Report is consistent with these financial statements.
To fulfill its accounting and reporting responsibilities, management maintains sets of accounts, which provide a record of the Agency's financial transactions. Management also maintains financial management and internal control systems that take into account costs, benefits, and risks. They are designed to provide reasonable assurance that
transactions are within the authorities provided by Parliament and by others such as the provinces and territories, and are executed in accordance with prescribed regulations and the Financial Administration Act and properly recorded to maintain the accountability of funds and safeguarding of assets. Financial management and internal control systems are reinforced by the
maintenance of internal audit programs. The Agency also seeks to assure the objectivity and integrity of data in its financial statements by the careful selection, training, and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that its regulations, policies, standards,
and managerial authorities are understood throughout the organization.
The Board of Management is responsible for ensuring that management fulfills its responsibilities for financial reporting and internal control and exercises this responsibility through the Audit Committee of the Board of Management. To assure objectivity and freedom from bias, these financial statements have been reviewed by the Audit
Committee and approved by the Board of Management. The Audit Committee is independent of management and meets with management, the internal auditors, and the Auditor General of Canada on a regular basis. The auditors have full and free access to the Audit Committee.
The Auditor General of Canada conducts an independent audit and expresses opinions on the accompanying financial statements.
Approved by:
William V. Baker
Commissioner and Chief Executive Officer
James Ralston
Chief Financial Officer and Assistant Commissioner, Finance and Administration
Ottawa, Ontario
September 16, 2008
