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Conclusion by the Commissioner

The Canada Revenue Agency’s 2006-2007 Report on Plans and Priorities presents our strategic vision of the Agency in 2010. In this report we link our program activities for the next three years to that vision, and establish short- and medium-term deliverables that will bring us to 2010. Our deliverables will also respond to key tax and benefit initiatives introduced in the May 2006 federal budget.

This report marks a turning point for the Agency. In the late 1990s, Parliament was seeking innovative ways to improve government service to Canadians. The Canada Revenue Agency was created as a prototype Alternative Service Delivery organization. The Agency has embraced this change and built an infrastructure that will support the next phase in our evolution. It is now time to fully implement the legislated authorities granted by Parliament and take full advantage of Agency status as a service provider for Canadians.

Our plans for the future must start with strong core business performance—administering taxes, collecting revenues and delivering benefits. We must maintain and strengthen our expertise by continually ensuring that our services are efficient and effective, and by maintaining Canadians' trust in the integrity and fairness of our program administration.

This report also calls for the maturing of our governance regime. This unique governance regime, which brings together political direction and corporate rigour, offers invaluable opportunities to clients and taxpayers for an effective and modern organization to administer tax, benefit, and related programs. We have yet to explore all the possibilities offered by this unique governance model.

The strength of our core business and our governance regime allows us to pursue new opportunities. We are able to offer to clients our modern, high-capacity processing operations, our national infrastructure, and our network of taxpayer and benefit recipient services. Linking current program activities to Agency 2010 ensures that new opportunities will be consistent with our business model and with our mandate to provide tax and benefits services.

As always, we rely on the experience and professionalism of our employees to meet our present and future goals. Together we are creating a nationwide institution of which Canada can be proud.

 

Michel Dorais, ICD.D
Commissioner and Chief Executive Officer
Canada Revenue Agency

Appendix A – Board of Management

Mandate

The Board of Management (BoM) of the Canada Revenue Agency is responsible for overseeing the organization and administration of the Agency and the management of its resources, services, property, personnel and contracts.

Members

Connie I. Roveto, ICD.D
Chair, Board of Management
President
Cirenity Management
Toronto, Ontario

Camille Belliveau, FCGA, CFP
Senior Financial Consultant (self-employed)
Shediac, New Brunswick

Myles Bourke, B.Comm., FCA
Chartered Accountant
Lethbridge, Alberta

L. Bernice Buckle
Corporate Director
Corner Brook, Newfoundland and Labrador

Raymond Desrochers, CA, CFE
Partner
BDO Dunwoody LLP Chartered Accountants
Winnipeg, Manitoba

André Gingras
Founder and Director
André Gingras et Associés inc.
Montréal, Québec

James J. Hewitt, FCMA
Corporate Director
Penticton, British Columbia

Linda Ivany, FCGA
Corporate Director
Halifax, Nova Scotia

Howard A. Leeson, Ph.D.
Professor of Political Science
University of Regina
Regina, Saskatchewan

James L. MacPhee, CA
Partner
Grant Thornton LLP Chartered Accountants
Montague, Prince Edward Island

Rod Malcolm, CA
Corporate Director
Iqaluit, Nunavut

James R. Nininger, Ph.D.
Corporate Director
Ottawa, Ontario

Stephen E. Rudin
Executive Director
Alzheimer’s Society of Canada
Toronto, Ontario

Brock A. Smith
Corporate Director
Toronto, Ontario

Michel Dorais, ICD.D
Commissioner and Chief Executive Officer
Canada Revenue Agency
Ottawa, Ontario

As of June, 2006

The Board of Management is supported by four committees with mandates to assist the Board in fulfilling its oversight responsibilities. The role and membership of these committees is outlined below.

Governance Committee
Mandate	The Governance Committee supports the Board of Management’s responsibilities for the stewardship of the Agency’s resources, services, property, personnel, and contracts by providing leadership in the governance framework and policies and practices of the Agency for the Board.
Membership	Chair:	C. Roveto
	Vice-Chair:	H. Leeson
	Members:	M. Dorais, L. Ivany, J. Nininger
Audit Committee
Mandate	The Audit Committee reviews the Agency’s accounting framework, financial and performance information, internal controls and risk tolerance, and compliance with financial and environmental legislation.1
Membership	Chair:	J. Hewitt
	Vice-Chair:	R. Desrochers
	Members:	J. MacPhee, C. Roveto
Resources Committee
Mandate	The Resources Committee reviews the Agency’s operating and capital budgets and the development of its administrative management strategies and policies for the management of funds, real property, contracts, information, information technology, and environmental obligations.
Membership	Co-Chair:	C. Belliveau
	Co-Chair:	R. Malcolm
	Members:	M. Dorais, A. Gingras, L. Ivany, C. Roveto
Human Resources Committee
Mandate	The Human Resources Committee is responsible for reviewing the management of human resources within the Agency and providing recommendations and advice on the Agency’s human resources management strategies, initiatives, and policies.
Membership	Chair:	J. Nininger
	Vice-Chair:	B. Smith
	Members:	B. Buckle, M. Dorais, H. Leeson, C. Roveto, S. Rudin

¹ The Audit Committee Charter has been significantly strengthened to bring it in line with best practices and the general direction of the Government of Canada with regard to internal audit.

Appendix B – Organizational Structure

AC = Assistant Commissioner
DG = Director General

Appendix C – Financial Tables

Table 1: Agency Planned Spending and Full-time Equivalents

(thousands of dollars)			Forecast Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008	Planned Spending 2008-2009
Program Activity
Client Assistance1			329,501	324,494	319,935	320,783
Assessment of Returns and Payment Processing			763,229	786,751	768,968	766,389
Filing and Remittance Compliance2			653,936	704,117	703,439	707,201
Reporting Compliance			1,033,296	1,106,654	1,099,472	1,098,854
Appeals			116,529	137,121	136,158	136,047
Benefit Programs			280,532	321,446	326,179	332,747
	Budgetary Main Estimates (gross)		3,177,023	3,380,583	3,354,151	3,362,021
	Less: Revenues Credited to the Vote		148,127	152,330	153,184	154,085
	Total Main Estimates		3,028,896	3,228,253	3,200,967	3,207,936
Adjustments
	Carry Forward from 2004-2005		165,375
Governor General Special Warrants
	Budget Measures arising from the 2004 and 2005 Federal Budgets		26,980	1,186	478	359
	Collective agreements/awards		145,395
	Maternity and Severance Payments		45,664
	Expenditure Review Announcements – Agency Initiatives		(35,100)
	Expenditure Review Announcements – E-Procurement		(1,680)	(7,070)
	Technical Adjustments3		(31,820)	87
Governor General Special Warrants			149,439	(5,797)	478	359
Technical Adjustments:
	2005-2006 Adjustment to Respendable Revenue Statutory Vote4		95,781
	2005-2006 Adjustment to CPP/EI work		5,923
	2005-2006 Adjustment to Revenues Credited to the Vote 1		(5,247)
	2005-2006 Adjustment for the Children’s Special Allowance Statutory Authority		10,000
Technical Adjustments			106,457	–	–	–
Total Adjustments			421,271	(5,797)	478	359
Total Planned Spending			3,450,167	3,222,456	3,201,445	3,208,295
Less:		Respendable Revenue pursuant to CRA Act5	116,316	96,089	96,342	96,535
Plus:		Cost of services received without charge6	474,444	467,158	467,158	467,158
Total Agency Spending			3,808,295	3,593,525	3,572,261	3,578,918
Full-Time Equivalents			37,498	38,303	38,293	38,291

¹ To be named Taxpayer and Business Assistance. 

² To be named Accounts Receivable and Returns Compliance. 

³  Includes reduced requirements due to delays in passage of legislation for Offshore Trusts ($24.7 million) and Transfers to Department of Justice ($7 million). 

⁴ Information technology services to the Canada Border Services Agency (CBSA). 

⁵ Excludes Non-Respendable Non-Tax Revenue of $2.6 million (refer to Table 5.2 for details), for purposes of comparability with other government departments and agencies.

⁶ Refer to Table 4 for details.

Table 2: Resources by Program Activity for 2006-2007

(thousands of dollars)	Budgetary					Adjustments (Planned Spending not in Main Estimates)	Total Planned Spending
	Operating	Grants and Contribution	GROSS	Revenues Credited to the Vote 1	Total Main Estimates NET
Program Activity
Client Assistance	323,494	1,000	324,494	(13,920)	310,574	(738)	309,836
Assessment of Returns & Payment Processing1	786,751		786,751	(28,930)	757,821	(1,728)	756,093
Filing and Remittance Compliance	704,117		704,117	(88,764)	615,353	(1,676)	613,677
Reporting Compliance	1,106,654		1,106,654	(10,076)	1,096,578	(2,013)	1,094,565
Appeals	137,121		137,121	(8,580)	128,541	(161)	128,380
Benefit Programs	134,446	187,000	321,446	(2,060)	319,386	519	319,905
Total	3,192,583	188,000	3,380,583	(152,330)	3,228,253	(5,797)	3,222,456

¹ For 2006-2007, the payment to the Ministère du Revenu du Québec in respect of the joint administration cost of federal and provincial sales taxes totalling $156.2 million, is included in Operating.

Table 3: Voted and Statutory Items listed in Main Estimates

Vote or Statutory Item	(thousands of dollars)	Main Estimates 2006-2007	Main Estimates 2005-2006
	Truncated Vote or Statutory Wording
1	Program expenditures1	2,551,607	2,317,891
5	Contributions		115,000
(S)	Minister of National Revenue and Minister of Western Economic Diversification – Salary and motor car allowance	73	70
(S)	Spending of revenues received through the conduct of its operations pursuant to Section 60 of the Canada Revenue Agency Act	96,089	20,535
(S)	Contributions to Employee Benefit Plans (EBP)	393,484	408,400
(S)	Children’s Special Allowance payments	187,000	167,000
	Total Agency2	3,228,253	3,028,896

¹ For 2006-2007, the payment to the Ministère du Revenu du Québec in respect of the joint administration cost of federal and provincial sales taxes totalling $156.2 million, is included in Program expenditures. ² The 2006-2007 Main Estimates for the Canada Revenue Agency (CRA) increased by $199.4 million from 2005-2006. The major differences include:

• ² a net increase of $113.5 million related to the increase for collective agreements/awards offset by a reduction in the government-wide rate for Employee Benefit Plans (EBP) rate from 20% to 19%;
• ² an increase of $13.2 million of the payment to the Ministère du Revenu du Québec for the joint administration of the federal/provincial sales taxes;
• ² an increase of $75.4 million in Respendable Revenue related to the services provided by the CRA to the Canada Border Services Agency (CBSA);
• ² an increase of $55.3 million to address legislative, policy and operational initiatives arising from the 2004 and 2005 Federal Budgets and other minor adjustments;
• ² an increase of $20.0 million for the Children's Special Allowance related to allowances for eligible children in the care of specialized institutions;
• ² offset by:
• ² an increase of $4.2 million in revenues credited to the vote for work related to the Canada Pension Plan (CPP); and
• ² a decrease of $73.8 million related to Expenditure Review Committee Savings for Departmental Initiatives and Procurement reductions.

Table 4: Services Received Without Charge

(thousands of dollars)	2006-2007
Accommodation provided by Public Works and Government Services Canada (PWGSC)	233,500
Payroll Services provided by PWGSC	1,434
Contributions covering employer’s share of employees’ insurance premiums and expenditures (excluding revolving funds) and employer’s contribution to employees’ insured benefits plans and expenditures, both paid by Treasury Board	165,678
Salary and associated expenditures of legal services provided by Justice Canada	62,894
Audit Services by the Office of the Auditor General	2,170
Workers’ Compensation coverage provided by Human Resources and Social Development (HRSD)	1,482
Total 2006-2007 Services received without charge1	467,158

¹ Services received without charge are reported on a gross basis.

Table 5: Sources of Respendable Revenue and Non-Respendable Non-Tax Revenue

Table 5.1: Respendable Revenue

(thousands of dollars)		Forecast Revenue 2005-2006	Planned Revenue 2006-2007	Planned Revenue 2007-2008	Planned Revenue 2008-2009
Program Activity
Client Assistance		13,412	10,829	10,843	10,836
Assessment of Returns and Payment Processing		35,953	30,879	31,041	31,186
Filing and Remittance Compliance		25,006	20,417	20,420	20,432
Reporting Compliance		32,331	26,812	26,865	26,889
Appeals		3,087	2,539	2,542	2,545
Benefit Programs		6,527	4,613	4,631	4,647
Total Respendable Revenue		116,316	96,089	96,342	96,535
Details
Refund of Previous Years’ Expenditures		953	953	953	953
Ruling Fees1		1,755	1,357	1,357	1,357
Advance Pricing Agreement		687	600	600	600
Other Services of a Regulatory Nature		64	20	20	16
Administration of Provincial Programs2		15,604	14,105	14,269	14,410
Other Services of a Non-Regulatory Nature		823	1,063	1,100	1,120
Sales of Goods and Information Products		160	72	73	73
Other Fees & Charges		39	39	40	40
Services to Other Government Departments3		96,231	77,880	77,930	77,966
Total Respendable Revenue		116,316	96,089	96,342	96,535

¹ The CRA charges taxpayers (based on a regulated user fee) for providing tax rulings in advance of a transaction taking place (to provide tax certainty). 

² Comprised mostly of a basic fee charged to the provinces for recoveries provided under tax collection (TCA) and other agreements. 

³ Comprising mainly of information technology services provided to Canada Border Services Agency (CBSA).

Table 5.2: Non Respendable Non-Tax Revenue

(thousands of dollars)			Forecast Revenue 2005-2006	Planned Revenue 2006-2007	Planned Revenue 2007-2008	Planned Revenue 2008-2009
Program Activity
Client Assistance			3,450	3,450	3,450	3,450
Assessment of Returns and Payment Processing			8,155	8,155	8,155	8,155
Filing and Returns Compliance			2,551,119	2,551,119	2,551,119	2,551,119
Reporting Compliance			9,410	9,410	9,410	9,410
Appeals			10,311	10,311	10,311	10,311
Benefit Programs			2,533	2,533	2,533	2,533
Total			2,584,978	2,584,978	2,584,978	2,584,978
Detail of Non-Respendable Non-Tax Revenue
Refunds of previous years’ expenditures
	Adjustments to prior year’s payables		450	450	450	450
Sales of goods and services
	Public building and property rental
		Lease and use of public property	185	185	185	185
	Service of a non-regulatory nature
		Administration of provincial programs	80	80	80	80
Other fees and charges
	Recovery of employee benefits		30,939	30,939	30,939	30,939
	Other		1,007	1,007	1,007	1,007
Miscellaneous
	Interest and penalties earned on revenues
		Personal Income Tax	1,789,686	1,789,686	1,789,686	1,789,686
		Corporations	976,933	976,933	976,933	976,933
		GST/HST, Excise and Air Travellers Security Charge	375,038	375,038	375,038	375,038
	Interest paid on Refunds
		Personal Income Tax	(67,832)	(67,832)	(67,832)	(67,832)
		Corporations	(495,792)	(495,792)	(495,792)	(495,792)
		GST/HST, Excise and Air Travellers Security Charge	(37,656)	(37,656)	(37,656)	(37,656)
	Other
		Court Fines	9,040	9,040	9,040	9,040
		Administration Charge for dishonoured payment instruments	2,900	2,900	2,900	2,900
Total Non-Respendable Non-Tax Revenue			2,584,978	2,584,978	2,584,978	2,584,978

Table 6: Resource Requirements by Branch or Program Activity by Functional Organization for 2006-2007

(thousands of dollars)	Program Activity
	Client Assistance	Assessment of Returns and Payment Processing		Filing and Remittance Compliance	Reporting Compliance	Appeals	Benefit Programs		Total Planned Spending1
Functional Organization
Assessment and Benefit Services Branch	(44)	358,717		–	9,909	–	257,843	2	626,425
Taxpayer Services and Debt Management Branch	124,737	–		390,743	4,308	–	19,796		539,584
Compliance Programs Branch	173	410		394	854,757	5,908	79		861,720
Appeals Branch	–	–		–	–	100,262	–		100,262
Legislative Policy and Regulatory Affairs Branch	70,568	3,754		11,477	4,331	433	722		91,285
Corporate Strategies and Business Development Branch	2,532	162,135	3	5,755	6,906	691	1,151		179,170
Executive Office	804	1,901		1,828	2,194	219	366		7,312
Assistant Commissioners, Regional Operations	3,293	7,783		7,484	8,981	898	1,497		29,936
Information Technology Branch	61,277	111,502		90,327	76,375	7,288	17,316		364,085
Public Affairs Branch	4,777	11,292		10,857	13,029	1,303	2,171		43,429
Corporate Audit and Evaluation Branch	1,159	2,739		2,634	3,161	316	527		10,535
Finance and Administration Branch	26,022	61,501		59,141	70,971	7,098	11,830		236,562
Human Resources Branch	14,567	34,431		33,107	39,728	3,973	6,621		132,426
Total Planned Spending1	309,836	756,093		613,677	1,094,565	128,380	319,905		3,222,456

¹ Any discrepancies in the sum of Total Planned Spending amounts can be attributed to rounding. ² Includes Children’s Special Allowance payment of $187.0 million. ³ Includes payments to the Ministère du Revenu du Québec in respect of the joint administration of the federal and provincial sales taxes of $156.2 million.

Table 7: Details on Transfer Payment Programs (TPPs)

(thousands of dollars)		Forecast Spending 2005-2006		Planned Spending 2006-2007	Planned Spending 2007-2008	Planned Spending 2008-2009
Grants
Benefit Programs
	Children’s Special Allowance payments	177,000		187,000	187,000	187,000
Contributions
Client Assistance
	Contribution in support of the Charities Regulatory Reform	1,000		1,000	1,000	1,000
Assessment of Returns and Payment Processing
	Contributions to the Ministère du revenu du Québec in respect of the joint administration costs of federal and provincial sales taxes	148,726	1
Total Transfer Payments		326,726		188,000	188,000	188,000

¹ Starting in 2006-2007, the payment to the Ministère du Revenu du Québec in respect of the joint administration cost of federal and provincial sales taxes totalling $156.2 million, is included in Operating.

Table 8: CRA Major Investment Initiatives 2006-2007 to 2008-2009

Project (thousands of dollars)	Expenditures to March 31, 2006	2006-2007	2007-2008	2008-2009	Total Estimated Cost	Project Description
NEW PROJECTS SINCE LAST PLAN
Non-Tax Collections Systems Integration	2,122	6,000	4,000		12,122	This project is the integration of the collections activities of the CRA and HRSD and constitutes the first phase towards the consideration of a pan-government collections organization.
Enterprise Work Management (EWM)	0	570			570	This project proposes to deploy a modern, flexible, seamless and fully integrated work management system for use across the Agency
CAS (SAP.ERP)	0	500			500	Upgrading the Corporate Administrative System (CAS) requires funding for license upgrade fees, conducting the technical upgrade itself, license maintenance fees and increased system maintenance.
Security Modernization	4,429	5,888	4,446	3,000	17,763	Composed of five projects with an objective to consolidate user and security administration management for accessing CRA/CBSA applications and aligning with security best practices to reduce risk of accidental or deliberate unauthorized access to, or misuse of, CRA/CBSA IT assets.
Data Centre Facilities – Heron Road/St-Laurent	1,933	3,500			5,433	Required upgrades and improvements to the physical facility infrastructure to ensure that it is sufficiently robust and reliable to continue to provide existing CRA and CBSA services, and act as a disaster recovery site reciprocally to Data Centre St. Laurent. (DCSL)
Network Services	0	3,949	1,881		5,830	Provision of network bandwidth and infrastructure to deploy technologies which will enhance network performance and security.
Data Stewardship	0	314	350	350	1,014	A business driven approach to managing data as a corporate asset with the supplementary objectives of assuring data quality, confidentiality, accuracy and integrity, and fostering data integration and sharing, ultimately realized through common information systems and data warehouses.
Managed Distributed Environment	0	3,173	3,213	2,514	8,900	A collection of numerous projects involved in implementing changes to the distributed computing environment with a goal to reduce complexities and improve efficiencies.
Publishing Content Management Solution	0	2,920	1,760	1,405	6,085	In order to achieve efficiencies in the publishing process, the CRA requires content management to allow for, better management of the content from creation to archiving, sharing of content across numerous products (publications, web, manuals), and for re-working for different audiences.
Total New Projects	8,484	26,814	15,650	7,269	58,217
EXISTING PROJECTS
GST/HST Redesign	108,020	43,895	34,658	12,280	198,853	GST/HST Redesign will increase efficiency and reduce compliance costs. It seeks to improve client service and program delivery, position the CRA to develop new partnerships with the provinces and territories, and address interface with the Ministère du Revenu du Québec and the provinces that use the harmonized system.
Business Integration and System Support	17,955	4,372			22,327	To provide integrated system tools for verification and enforcement, to better manage the compliance programs workload, and improve performance reporting.
Government On-Line Round 4	6,398	4,000	4,000		14,398	Initiatives include My Business Account, My Account, 3rd Party Privilege and Authentication Exchange Pilot.
Integrated Revenue Collections	28,346	9,400			37,746	Automated revenue collections workloads resulting in greater operating efficiencies through improved workload allocation and case management.
Fairness Management Information System (FMIS)	0	1,000	1,000		2,000	Enhancements to the system to improve tracking of the fairness requests, implement tool for consistent decision-making, develop better tools to collect data and manage the fairness workload.
Service Availability	35,018	2,000			37,018	The Service Availability Improvement (SAI) program is a multi-year initiative to ensure that CRA can deliver high availability service to the other Agency branches, and meet Government-On-Line objectives.
Data Centre Recoverability	40,940	6,062	5,300		52,302	To develop and implement recovery capabilities of essential CRA systems in the event of catastrophic loss of either Data Centre Heron (DCH) or Data Centre St. Laurent (DCSL).
Business Intelligence/Decision Support (BI/DS)	7,835	3,000	3,000	3000	16,835	To allow for replacement of existing “stove-pipe” information systems with an integrated Agency-wide “data warehouse”; to improve program delivery by identifying trends, evaluating risks, and analyzing policy effectiveness.
Compensation Services Delivery Renewal Project	42,777	10,400			53,177	A new, modernized compensation service system will reduce paper and the manual processing of large volumes of data by maximizing the use of available technology. It will also allow managers and employees to access compensation information directly.
Agency Classification System	3,078	2,142	4,700		9,920	Prepare to implement the Agency Classification System through job classification conversion / alignment of on-line pay changes.
FIS Development Phase 2	21,087	961			22,048	Phase 2 will enhance the Revenue Ledger System and processes to support accrual accounting, control, reconciliation and internal and external reporting requirements of the Government Financial Information Strategy.
Intranet Renewal Project	741	700	700		2,141	CRA’s intranet has evolved into an important work tool and key internal program and service delivery instrument for the whole of the agency. This project is a coherent approach to using CRA’s Internet standards to increase productivity and security, and reduce costs and risks associated with the management of the Intranet.
Individual Indentification Systems Modification	811	389			1,200	CRA’s Individual Identification (Ident) is a business program, whose purpose is to be a service provider – the Agency’s manager for individual identification information.
PAYDAC	1,614	1,140			2,754	The purpose of the PAYDAC initiative is to migrate the largest revenue accounting system off an aged system to new modularized systems that will facilitate the incorporation of payroll account functionality into My Business Account.
Total Existing Projects	314,620	89,461	53,358	15,280	472,719
Total Funding Committed	323,104	116,275	69,008	22,549	530,936
Unallocated Funding			13,192	48,751	61,943
Total Investment Fund	323,104	116,275	82,200	71,300	592,879

Table 9: Asset Management Plan 2006-2007 to 2008-2009

Asset Management (thousands of dollars)	Forecast 2005-2006	Planned 2006-2007	Planned 2007-2008	Planned 2008-2009
Vehicles and Equipment
Vehicles	199	382	382	382
Servers, Mainframe, and Annual Software Renewal and Maintenance	72,677	79,183	86,649	86,649
Desktops, and Laptops	20,448	33,146	35,772	34,144
Training Devices	339	378	378	378
LAN Printers	1,250	1,250	1,250	1,250
Total for Vehicles and Equipment	94,913	114,339	124,431	122,803
Real Property	15,604	12,118	11,175	11,080
Total Asset Replacement Funding	110,517	126,457	135,606	133,883

Appendix D – Service Standards

External service standards publicly state the level of performance that citizens can reasonably expect to encounter from the Canada Revenue Agency under normal circumstances. The CRA is committed to developing, monitoring, and reporting on a full suite of service standards in areas of importance to taxpayers and benefit recipients. Service standards also support our commitment to Canadians for transparency, management accountability, and citizen-centred service.

By promoting predictable, timely and responsive service, service standards help facilitate Canadians’ compliance with tax and benefits legislation and support CRA’s program administration. Service standards are also the cornerstone of the CRA’s performance measurement system. As noted in the Auditor General’s assessment in our 2004-2005 Annual Report, the CRA’s service standards are clear, concrete, and measurable; and the reader can easily determine whether they have been met. Our service standards are now aligned to the new Program Activity Architecture. Reporting on our performance against our service standards constitutes one indicator of the results achieved with the resources allocated to a given program activity or sub-activity.

Management sets targets that represent the percentage or degree of expected attainment of an established standard. Targets are based on operational realities and infrastructure, historical performance, degree of complexity of the work, and Canadians’ expectations. For example, standards for front-end processing generally have shorter time frames and/or higher targets, while those requiring greater review and analysis have lengthier time standards and/or lower targets. Performance that drops significantly below targets signals to managers that remedial action may be necessary.

Meeting our targets for service standards demonstrates that the organization is responsive to taxpayer and business needs. This helps establish credibility in our operations and contributes, as Citizens First research has determined, to increasing the level of confidence that Canadians place in government.

The CRA continues to examine opportunities for introducing new service standards to keep pace with changes in technology and business processes, as well as with our evolving service strategy. We draw on our experience in working with our service standards to revise, adjust or even delete existing standards, as appropriate.

As specified in the Canada Revenue Agency’s Guide to Service Standards, new standards, as well as revisions to existing ones or their targets, must receive final approval through the Corporate Business Plan.

Introduction of new service standards

In 2006-2007, we will introduce three new standards. These relate to client and taxpayer requests for statistical data as required under the revised User Fee Act, assessing Excise Tax, Excise Duty and Air Travellers Security Charge returns, and providing GST/HST rulings and interpretations.

Exhibit 1: New Service Standards for implementation in 2006-2007

Program Activity	Service Standard	Target
For implementation
Client Assistance (Tax and Regulatory Affairs)	Respond to written enquiries for GST/HST rulings and interpretations within 45 working days of receipt of request	75%
Assessment of Returns and Payment Processing	Assess Excise Tax, Excise Duty and Air Travellers Security Charge returns within 90 days of receipt of a complete return	95%
Corporate Services	Respond to client or taxpayer requests for statistical tax data within an average of 30 calendar days from receipt of all essential information	100%

Deletions and adjustments

Also in 2006-2007, we will delete two existing service standards and re-evaluate the need for another, while developing revised standards for still others.

Specifically, to reflect the evolution of our service delivery strategy, we will delete the current service standard for counter service wait time, as of April 1, 2006. We are refining our current walk-in service to provide taxpayers and benefit recipients with a more timely, accessible, reliable and fair service at an affordable cost. Our strategy over the next few years will be to migrate taxpayers and benefit recipients to self-serve options, and to offer in-person service by appointment, as required; as a result, the counter service wait time service standard is no longer appropriate. Once the transition has taken place, we will consider establishing service standards appropriate to adjusted service offerings.

We are also deleting our existing service standard for Statement of Arrears (SOA) as of April 1, 2006. The CRA is undertaking a re-engineering of the SOA process to reduce the duplication of documentation sent to taxpayers; options under consideration would result in reduced paper burden, consistent with sustainable development objectives. Further consultation will take place with taxpayers and internal stakeholders. The Agency will continue to monitor and report on its goal of mailing out remaining SOAs on time (target 95 percent) as an operational standard.

Last year, approval was given to introduce a service standard for T1 publications, requiring them to be 100 percent ready for delivery by a specified date. We are currently reviewing the need for an official service standard for this workload. Nonetheless, the CRA will continue to manage the workloads in accordance with internal target dates for issuing publications.

Finally, as a result of the re-engineering of the compliance processes for Registered Pension Plans (RPPs), the CRA is looking at changes to existing service standards in this area and consulting with its Pension Advisory Committee. The RPP service standards will be restated to better reflect the way our programs will be delivered. The goal is to implement new standards by April 1, 2006.

Exhibit 2: Changes proposed for 2006-2007

Program Activity	Service Standard	Target
Deletions and Adjustments
Client Assistance (Client Services)	Counter service wait time – delete in view of changes to the provision of in-person service	90%
	T1 Publications – need for a service standard being re-evaluated
Client Assistance (Tax and Regulatory Affairs)	Registered plans (applications, amendments and terminations) and Actuarial Reports – Business re-engineering will lead to revised service standards
Assessment of Returns and Payment Processing	Statement of Arrears – delete	95%

Service standards under development

The CRA also remains committed to improving service and developing new service standards, as shown by our ongoing work listed below.

Exhibit 3: Developments planned for 2006-2007 to 2008-2009

Program Activity	Service Standard
Under Development
Client Assistance (Client Services)	Responding to correspondence related to General and Business Enquiries
	Proposed standard – tbd
	Target – tbd
Client Assistance (Tax and Regulatory Affairs)	Review and respond to applications for charitable registration within four months of receipt of a complete application
	Target – 80%
	Respond to telephone enquiries related to GST/HST rulings and interpretations Standard and Target – tbd
Assessment of Returns and Payment Processing	Change my return – via “My Account”
	Proposed standard – tbd
Reporting Compliance	Part XIII Withholding telephone enquiries
	Proposed standard and target – tbd
Benefit Programs	Action taken in response to either CCTB or GST/HST credit enquiries (Account Maintenance)
	Proposed standard – We will process recipient enquiries relating to accounts accurately
	Target – 98%
	Processing CCTB applications
	Proposed standard – applications will be processed accurately
	Target – 98%
	Respond to Canada Child Tax Benefit (CCTB) telephone calls in queue
	Standard and target – tbd

Reporting

We report externally on our overall performance against our service standards in the CRA’s Annual Report, found at: www.cra-arc.gc.ca/agency/annual/menu-e.html. More information on our 2004-2005 performance can be found at: http://www.cra-arc.gc.ca/servicestandards/

Exhibit 4: Service Standards in effect in 2006-2007 (according to Program Activity Architecture)

Service			Service Standard	Target
Client Assistance (PA1) (Client Services)
1. Problem resolution program			Acknowledged within 48 hrs	100%
2. Problem resolution program			Resolution/taxpayer contact within 15 working days	100%
3. General Enquiries – Telephone			Respond to calls in queue within two minutes	80%
4. Business Enquiries – Telephone			Respond to calls in queue within two minutes	80%
Client Assistance (PA1) (Tax and Regulatory Affairs)
5. Charities – response to telephone enquiries			Within 60 seconds	85%
6. Advance income tax rulings to taxpayers			Within average of  60 days	100%
7. Technical interpretations to taxpayers			Within average of 90 days	100%
8. GST/HST rulings and interpretations – written enquiries			Within 45 working days	75%
9. Applications to register pension plans			Deemed registration within 60 days	85%
10. Applications to register pension plans			Complete review in 180 days	85%
11. Amendments to registered pension plans			9 months	80%
12. Termination of registered pension plans			One year	85%
13. Retirement savings plans (applications to register, amend, or terminate)			Within 60 days	80%
14. Retirement income funds (applications to register, amend, or terminate)			Within 60 days	80%
15. Education savings plans (applications to register, amend, or terminate)			60 days	85%
16. Actuarial valuation reports			9 months	80%
17. Deferred income plans – Response to telephone enquiries			Within 2 working days	100%
18. Deferred income plans – Response to written enquiries			Within 60 days	80%
19. Deferred Profit Sharing Plans			Registration in 180 days	80%
20. Deferred Profit Sharing Plans			Amendments and Terminations in 270 days (nine months)	80%
Assessment of Returns and Payment Processing (PA2)
21. Processing visitor (GST/HST) rebate applications			4-6 weeks	95%
22. Responding to taxpayer requested adjustments (T1)			8 weeks	100%
23. Providing Statements of Interim Payments (SIP) to corporations and other levies clients on a monthly basis			Mailed by the 18th of the month	95%
24. Processing T1 individual income tax returns (paper)			4-6 weeks	4 weeks
25. Processing T1 individual income tax returns (EFILE, TELEFILE, NETFILE)			2 weeks	2 weeks
26. Processing T3 trust returns			Within 4 months	95%
27. Processing Excise Tax, Excise Duty and Air Travellers Security Charge returns			Within 90 days	95%
28. Processing GST/HST returns			21 days	95%
29. Processing T2 corporation income tax returns			75% in 50 days	75% in 50 days
			90% in 90 days	90% in 90 days
Filing and Remittance Compliance (PA3)
30. Processing fairness requests related to accounts receivable and trust accounts programs			4-6 weeks	90%
Reporting Compliance (PA4)
Claims – SR&ED tax incentives
31. Refundable claims – combined target (unaudited and audited)			120 days	90%
32. Non-refundable claims – combined target (unaudited and audited)			365 days	90%
33. Claimant-requested adjustments to refundable claims			240 days	90%
34. Claimant-requested adjustments to non-refundable claims			365 days	90%
Claims – Video and film tax credits
35. Refundable claims – unaudited			60 days	90%
36. Refundable claims – audited			120 days	90%
Appeals (PA5)
37. First contact letter for disputes			30 days	85%
Benefit Programs (PA6)
38. Processing CCTB applications			End of second month after month in which application is received	98%
39. Account maintenance/Responding to written enquiries			End of second month after month in which enquiry is received	98%
40. Validation and control. Results of review			60 days	90%
41. Taxpayer Representative Identification System (TRIS)			Processing of T1013s within 20 days of receipt during peak periods	90%
42. Taxpayer Representative Identification System (TRIS)			Processing of T1013s within five days of receipt during non-peak periods	90%
Corporate Services (PA7)
43. Client or taxpayer requests for statistical tax data			Within an average of 30 calendar days	100%
	Legend:	Existing service standard	New or modified service standard

Appendix E – Sustainable Development Strategy

The Canada Revenue Agency’s sustainable development vision is “to be a globally recognized organization for best practices for sustainable development”.

The Agency is committed to establishing baselines and measures for paper consumption, green procurement, solid waste diversion from landfill, fleet efficiency, outside emissions (pollution) generated by employee and business travel, and employee sustainable development awareness. In addition, a new performance measurement system to enhance monitoring and reporting of the strategy is under development and will be presented to BoM for consideration.

The Agency outlined mini-strategies to facilitate the achievement of the Sustainable Development Strategy as well as expected results.

Mini-strategies

Results expected by March 31, 2007

Engage management leadership Ensure effective and creative communication Provide simple and effective tools and support Support and enhance the national sustainable development network Target systems and templates as a means of integrating sustainable development into the Agency’s planning activities Assign appropriate resources

Systematic management of environmental issues Program delivery through systematic environmental performance measurement, business travel reflecting economic, social, and environmental considerations, and increased influence in negotiations with partners in the area of sustainability Stronger leadership for sustainable development and increased employee buy-in Framework completed for sustainable development management, and decision-making that includes sustainable development considerations

The National Action Plan⁶  drives the Sustainable Development Strategy, which:

• details the goals, objectives, targets, activities, timelines, offices of responsibility, performance measures, and data collection methods
• consists of four goals, nine objectives, twenty-two targets, and eighty-two activities to be completed over the three-year period—work that includes reducing air pollution, and increasing purchase of environmentally preferred goods
• is supported by individual branch and regional action plans, developed through a consultative process and approved by respective Assistant Commissioners

Environmental Management Programs (EMPs) form an important part of the National Action Plan. EMPs are individual work plans used to systematically manage the Agency’s environmental responsibilities through the identification of opportunities, as well as the establishment, implementation, monitoring and reporting on targets. The Agency currently has EMPs that address its significant environmental aspects of fleet, green procurement, solid and hazardous wastes, internal paper, and outside emissions.

In compliance with the Auditor General Act (1995), the Agency will conduct extensive consultations to prepare the Sustainable Development Strategy 2007-2010 for tabling in Parliament by December 2006. The goals and targets of the new strategy are anticipated to remain consistent with the current strategy with increased emphasis on the social aspects of sustainability.

CRA’s Sustainable Development Strategy and additional information on the Sustainable Development program are available on the CRA Web site at http://www.cra-arc.gc.ca/agency/sustainable/.

Appendix F – Glossary

Term	Descrition
Accountability	The CRA’s commitment to be clear and transparent in reporting to Canadians about the results we have achieved.
Accountability framework	The structure setting out the assignment of responsibilities and expectations and the mechanism to assess performance.
Accrual accounting	The method by which revenues and expense transactions are recorded for the period in which they are considered to have been earned and incurred.
Activity	An operation or work process internal to an organization, which uses inputs to produce outputs, e.g., training, research, construction, negotiation, investigation, etc.
Annual report	An overview of the CRA’s program delivery results, which details the performance of its programs against its goals and objectives and expected outcomes. It includes supporting financial exhibits.
Asset Management Plan	The CRA’s plan to ensure efficient and effective management of new and existing capital assets.
Caller accessibility	A measure of the percentage of callers who succeed in reaching our telephone service.
Channel convergence	Channel convergence is the integrated management of our key delivery channels, i.e., print, Web, phone, and in-person to reduce our operating costs and ensure consistent information for the taxpayer regardless of their channel of choice. Our current initiative, Smartlinks, integrates the Web and telephone channels to facilitate co-operative navigation of program content between taxpayers and our telephone agents. This dramatically improves the client experience and reduces the time needed for agents to review program needs with clients.
Client s	Federal, provincial, territorial governments, First Nations government organizations, and other government-funded and-controlled organizations that deliver government mandated programs.
Commitments	Areas of focus in the performance cycle linked to business plans or corporate/government priorities. Ongoing commitments reflect a balanced representation of core accountabilities such as financial management, business planning, human resources management, etc., while special commitments are intended to be challenging but achievable with effort.
Compliance	Adherence to the law. Compliance with tax laws includes filing, registration, remittance and reporting for taxes, and applications for benefits in a voluntary, accurate and timely manner.
Corporate Business Plan	Outlines the CRA’s major challenges, directions, and objectives for a three-year period; the strategies to achieve those objectives; and the performance measures for measuring progress.
Data warehouse	A specialized database that draws data from applicable systems (normally operational systems) and presents it to users in a manner that facilitates search, review, and analysis.
Dispute	General term to designate a dispute, an objection, or an appeal to the Minister made by or on behalf of a taxpayer, related to a CRA decision.
Effectiveness	The extent to which an organization or program’s actual results align with the anticipated results.
Efficiency	The extent to which an organization or program achieves its desired or anticipated results with the least possible investment of time, effort, and money.
Eligible	Meets the requirements of the legislation to receive a benefit.
Enforcement	Actions taken by the CRA to address and correct cases of non-compliance.
Entitled	Qualifies to receive a specific payment or credit.
Entitlement	The amount due to an entitled person for a specific period.
Expected result	An intermediate level of outcome that the CRA is aiming to achieve through its program activities.
Fairness provisions	Legislation introduced in the early 1990s that provides relief (e.g., forgiveness of interest and penalties) to taxpayers in certain circumstances beyond their control (such as hardship).
Financial Information Strategy	A government-wide initiative designed to enhance decision-making and accountability across government, and to improve organizational performance through the strategic use of financial and non-financial performance information.
Full-time equivalent	One “full-time equivalent” equals one person employed full-time per year.
Governance	Governance in the CRA comprises the exercise of legislated authority through the structure and processes established between the Minister, the Board of Management, and the Agency as well as other government entities, to determine the CRA’s strategic direction and to fulfil its mission and mandate.
Guaranteed Income Supplement	A federal government supplement for low-income seniors.
Infrastructure	Publicly or privately owned fixed capital assets for public use or benefit.
Investment Plan	The CRA’s strategic investments for the next three years.
Management Accountability Framework	A document that outlines the rationale, theory, resources, and governance and accountability structures of a program policy or initiative and sets out a plan to measure, monitor, and report on results throughout the lifecycle of the policy, program, or initiative. Management Accountability Frameworks (MAFs) are intended to assist departments in achieving the expected results of their policy, program, or initiative.
Management framework	The framework of inter-related systems, processes, and practices adopted by management to achieve established objectives. The CRA’s management framework involves planning, implementing, and reporting.
Management, Resources and Results Structure	The Management, Resources and Results Structure (MRRS) is a comprehensive framework that consists of an organization’s inventory of activities, resources, results, performance measurement, and governance information. Activities and results are depicted in their logical relationship to each other and to the strategic outcome(s) to which they contribute. The MRRS is developed from a Program Activity Architecture (PAA).
Mission	A statement providing the social, political, and economic justification for our existence. The CRA’s mission statement reflects its identity, purpose, and desired response to key stakeholders, its philosophy and core values, and its ethical standards.
Operating environment	Refers, generally, to the conditions, trends, and developments that exist in the external environment and that are significant to the operations or directions of an organization.
Partners	Authorities with whom the Agency collaborates on various issues for mutual benefit or to attain a common objective, but for whom the Agency does not provide a service as defined in its core business activities.
Performance	How well an organization, program, etc. is achieving its planned results measured against anticipated results. In results-based management, performance is measured and assessed, reported, and used as a basis for management decision-making.
Performance reporting	The process of communicating evidence-based performance information. Performance reporting supports decision-making, serves to meet accountability requirements, and provides a basis for citizen engagement and a performance dialogue with Parliamentarians.
Program	A group of related activities that are designed and managed to meet a specific public need and often treated as a budgetary unit.
Program Activity Architecture	The Program Activity Architecture (PAA) is an inventory of all the activities undertaken by a department or agency. The activities are depicted in their logical relationship to each other and to the strategic outcome(s) to which they contribute. The PAA is the initial document for the establishment of a Management Resources and Results Structure (MRRS).
Risk	The potential that an event, action or inaction will have a positive or negative impact on the achievement of specific organizational objectives. Risk is described in terms of likelihood, frequency and magnitude.
Risk management	A systematic approach to setting the best course of action under uncertainty by identifying, assessing, understanding, acting on, and communicating risk issues.
Service standard	A public statement about the level of performance the CRA is committed to, and that Canadians can reasonably expect to encounter.
Smartlinks	A CRA Web initiative used to track user issues on different parts of the CRA Web site that have generated high volumes of calls to a CRA call centre. Special telephone numbers are embedded in various pages on the Web site. These are then connected to a specific call centre operator to help the user with tax-related questions. A survey that probes the user’s immediate past experience with the Web site may also be administered by the operator.
Spending	Planned spending – An amount that reflects total planned budgetary spending, whether funded through budgetary appropriations or revenue credited to the vote, and that can also include adjustments anticipated as a result of budget measures.
	Authorized spending – Initial planned spending (Main Estimates allocation) plus in-year funding through the Supplementary Estimates and other authorities.
	Allocated spending – Allocations to individual branches of the CRA (does not include authorized employee benefit program amounts).
Stakeholder	Any person, group, or organization that can place a claim on an organization’s attention, resources, or output, or that is affected by that output.
Strategic direction	Our plan to carry out our mandate and achieve our vision, mission, and goals.
Strategic outcome	This outcome describes the difference an organization is mandated to make within its sphere of influence, to provide long-term and enduring benefits to Canadians.
Strategies	The CRA’s strategies are the broad, long-term statements detailing what the Agency needs to do to achieve its mission.
Sustainable development	A development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Target	Specific quantitative and qualitative descriptors that define what an organization is trying to achieve over a specific period of time.
Tax base (protecting the)	The tax base is a government’s greatest revenue-generating asset. It represents the broad range of goods, services, income, etc. that is subject to a tax. Protecting the tax base means the mix of activities undertaken by a tax administration to minimize real or potential leakage. It includes reviews, audits, and investigations, among other activities.
Underground economy	Economic activity that is neither reported or recorded. Thus payment of due taxes is avoided.
Values	The guiding principles that define an organization’s corporate culture and reflect its managerial philosophy. The CRA is guided by the following values: integrity, professionalism, respect, and co-operation.
Vision	The vision is usually a future-oriented goal for the organization. It reflects the organization’s high ideals and challenging ambitions, and captures its uniqueness and distinctive competence.
Voluntary Disclosures Program	Provides taxpayers with the opportunity to correct any past errors or omissions, and to report, without penalty, their tax obligations to the CRA.

¹ to be named Taxpayer and Business Assistance

² to be named Accounts Receivable and Returns Compliance

³ to be named Taxpayer and Business Assistance

^3 2 to be named Enquiries and Information Services

⁴ to be named Accounts Receivable and Returns Compliance

⁵ to be named Benefit Enquiries

⁶ The National Action Plan for Sustainable Development is updated annually.

 

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