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Section III: Supplementary Information
3.1 Agency Link to the Government of Canada Outcomes
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Revenues Credited to Vote 1
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Government of Canada Outcome – Federal organizations that support all departments and agencies:
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Taxpayer and Business Assistance ( PA1)
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Assessment of Returns and Payment Processing ( PA2)
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Accounts Receivable and Returns Compliance ( PA3)
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Reporting Compliance ( PA4)
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Government of Canada Outcome – Income security and employment for Canadians:
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3.2 Unaudited Supplementary Financial Information
Financial Performance Information – Parliamentary Appropriations
Introduction
This section of the CRA Departmental Performance Report 2007-2008 provides the details of the Agency's Resource Management performance for the purpose of reporting to Parliament on the use of appropriations in 2007-2008. This complements the information provided in the spending
profile sections under each Program Activity and satisfies the reporting requirements set for departmental performance reports.
Financial reporting methodologies
The CRA's funding is provided by Parliament through annual appropriations (modified cash accounting basis) and the CRA reports its expenditures and performance to Parliament, together with details on the management of Parliamentary
appropriations on the same basis. In addition to the above reporting requirements, the CRA is also required to prepare its annual financial statements in accordance with the accounting principles applied in preparing the financial statements of the Government of Canada (full accrual accounting basis). Accordingly, the audited Statement
of Operations – Agency Activities includes certain items such as services received without charge from other government departments and federal agencies. A reconciliation can be found in Table 3, .
CRA financial information
Activities of the Agency
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(in thousands of dollars)
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The Financial Statements – Agency Activities reports $3,609.1 million as total Parliamentary appropriations used (Note 3 b on page 123 of the Canada Revenue Agency Annual Report to Parliament 2007-2008 www.cra-arc.gc.ca/gncy/nnnl/menu-eng.html shows the reconciliation to the net cost of operations). The difference from the $4,423.0 million reported in this section is explained by four items reported in the Financial Statements – Administered Activities: the payments to provinces under the Softwood Lumber Products
Export Charge Act, 2006 $603.6 million; the Children's Special Allowance, $208.2 million; the payments under the Energy Costs Assistance Measures Act, $1.0 million, and the Relief For Heating Expenses, $1.1 million (part of Vote 1, Program Expenditures).
Overview
For 2007-2008, Parliament approved $3,379.9 million through the Main Estimates, as shown in CRA's 2007-2008 to 2009-2010 Corporate Business Plan.
The 2007-2008 Main Estimates have been adjusted to include:
- $603.6 million for the Statutory Payments related to the 2006 Canada/US Softwood Lumber Agreement and an additional $15 million for its preparation, implementation and administration;
- $257.1 million transferred from Public Works and Government Services Canada (PWGSC) for Accommodation Services;
- $167.7 million for the Carry-forward from 2006-2007;
- $61.3 million for Maternity and Severance payments;
- $45.2 million for Budget measures arising from the 2007 Federal Budget;
- $28.1 million increase for Respendable Revenue adjustment mainly for information technology services provided to Canada Border Services Agency (CBSA);
- $21.5 million for the implementation of a single administration of corporate tax for the Province of Ontario;
- $19.3 million for the National Initiative to address inter-provincial tax avoidance by corporations;
- $12.6 million for Collective Agreements;
- $10.5 million for Budget measures arising from the 2006 Federal Budget;
- $4.6 million for Legal and Income Tax Debt Set-off Activities of the Collection Litigations Advisory Services;
- $3.2 million for the Children's Special Allowance Statutory Payments;
- $1.0 million for the administration of the one-time Energy Cost Benefit payments;
- $0.8 million transferred from Justice Canada for Legal Costs;
- $0.7 million for National Anti-Drug Strategy;
- $0.6 million for Electronic Services for Business Advertising Campaign;
- $0.5 million for Court Awards and Crown Assets Disposal;
- $0.2 million for other minor adjustments.
Offsetting these increases, the CRA returned $41.8 million related to Canada Pension Plan and Employment Insurance; $22.1 million pending the approval of the Offshore Trusts Initiative legislation and some $8.6 million in funding to the Treasury Board related to Payments to Private
Collection Agencies. Agency Budgets were also adjusted by $0.7 million for Employee Benefits Plans reductions. This resulted in total approved authorities of $4,560.2 million for 2007-2008, representing an in-year increase of 35% over the Main Estimates.
Of the $4,560.2 million total authority, CRA's actual spending totalled $4,423.0 million resulting in $137.2 million unexpended at year-end. After adjusting for unused resources related to the Residual Offshore Trusts and Charities Outreach Program, the remaining $134.9 million is
available for use by the Agency in 2008-2009. This amount is within 5% of the total authority.
The $134.9 million carry forward to 2008-2009 will be directed primarily to selected strategic investments related to:
- Major project spending (Compliance Systems Redesign, Agency Classification Standards, Non-Tax Collections Systems Integration, GST Redesign);
- Special purpose funding (Softwood Lumber, Charities Outreach Program, Charities Public Security Anti-Terrorism Measures, Corporate Tax Administration for Ontario, Ministère du revenu du Québec for the Administration of the GST);
- Other operational and workload pressures.
Revenues administered by the Agency
Net revenues administered by the CRA totalled some $292.9 billion, an increase of 5% from the $279 billion administered in 2006-2007.
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(in thousands of dollars)
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Provincial, Territorial Governments and First Nations
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Financial Performance Tables
Introduction
The following tables provide financial information about the performance of the Agency during the 2007-2008 fiscal year. The tables compare Main Estimates and Planned Spending, as shown in the 2007-2008 Report on Plans and Priorities, with total authorities at year-end and actual expenditures for the fiscal year.
The information is presented at the Agency level, the Program Activity level, as well as by authority and type of revenue and expense.
Financial Tables Index
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Sources of Respendable and Non-Respendable Non-Tax Revenue
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Respendable Non-Tax Revenue
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Non-Respendable Non-Tax Revenue
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User Fees Act (UFA) – Advance Income Tax Ruling Fee
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Policy on Service Standards for External Fees – Advance Income Tax Ruling Fee
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User Fees Act (UFA) – Taxation Statistical Analyses and Data Processing Fee
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Policy on Service Standards for External Fees – Taxation Statistical Analyses and Data Processing Fee
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User Fees Act (UFA) – Access to Information Processing Fee
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Policy on Service Standards for External Fees – Access to Information Processing Fee
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Details on Project Spending
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Details on Transfer Payment Programs (TPPs)
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Children 's Special Allowance Payments (CSA) (Statutory)
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Energy Cost Assistance Measures Expenses (Statutory)
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Payments to Provinces under the Softwood Lumber Products Export Charge Act, 2006 (Statutory)
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Table 1 Comparison of Planned to Actual Spending (including FTEs)
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(in thousands of dollars)
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Cost of services received without charge
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[Footnote 1] Excludes the payments made to Justice Canada during the fiscal year as directed by
TBS ($3.6 million in 2005-2006 and $15.4 million in 2006-2007).
[Footnote 2] Starting in 2007-2008, included in this Program Activity are the Softwood Lumber Statutory Payments ($603.6 million in 2007-2008).
[Footnote 3] Includes payments to the Ministère du Revenu du Québec in respect of the joint administration costs of Federal and Provincial sales taxes ($131.4 million in 2005-2006, $157.4 million in 2006-2007 and $140.7 million in 2007-2008).
[Footnote 4] Includes Payments to Private Collection Agencies ($12.4 million in 2006-2007 and $12.4 million in 2007-2008).
[Footnote 5] Includes a) Relief for Heating Expenses (a relief program announced in 2000) ($2.9 million in 2005-2006, $1.7 million in 2006-2007 and $1.1 million in 2007-2008); b) Energy Costs Assistance Measures expenses (a relief program announced in the Fall of 2005) ($357.7 million in
2005-2006; $4.1 million in 2006-2007 and $1.0 million in 2007-2008); and c) Children
's Special Allowance payments ($169.6 million in 2005-2006, $197.8 million in 2006-2007 and $208.2 million in 2007-2008).
[Footnote 6] The increase in Respendable Revenue is mainly related to Information Technology services provided to the Canada Border Services Agency (CBSA).
[Footnote 7] These figures reflect the approach taken in the Agency
's Audited Financial Statements where a clear distinction is made between Agency activities and administered activities. Interest and penalties collected for personal, corporate and other taxes, which are part of the
Agency
's administered activities rather than Agency
's activities, are excluded. For more details, see Table 4.2.
Table 2 Voted and Statutory Items
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(in thousands of dollars)
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Program expenditures and recoverable expenditures on behalf of the Canada Pension Plan and the Employment Insurance Act
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Minister of National Revenue – Salary and motor car allowance
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Spending of revenues received through the conduct of its operations pursuant to section 60 of the Canada Revenue Agency Act
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Contributions to employee benefits plans
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Children's Special Allowance payments
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Payments to private collection agencies pursuant to section 17.1 of the Financial Administration Act
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Payments under the Energy Costs Assistance Measures Act
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Payments to provinces under the Softwood Lumber Products Export Charge Act
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Spending of proceeds from the disposal of Surplus Crown Assets
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The following table details the authorities approved for the Agency after the Main Estimates and reconciles with the Total Authorities shown in Table 2.
Table 2.1 Authorities approved after tabled Main Estimates
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(in thousands of dollars)
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Single administration of corporate tax for the Province of Ontario
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National initiative to address inter-provincial tax avoidance by corporations
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Canada/US Softwood Lumber Agreement
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Budget measures arising from the 2006 Federal Budget
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Statutory Payments related to Canada/US Softwood Lumber Agreement
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Transfer from PWGSC for accommodation services
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Carry Forward from 2006-2007
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Maternity and Severance Payments
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Funding to address budget measures arising from the 2007 Federal Budget
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Respendable Revenue Adjustment primarily for Information Technology services provided to CBSA
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Legal and Income Tax Debt Set-off Activities of the Collection Litigations Advisory Services
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Children's Special Allowance adjustment
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Energy Cost Assistance Measures Statutory Payment
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Transfer from Justice Canada for legal costs
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National Anti-Drug Strategy (NADS)
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Electronic Services for Business Advertising Campaign
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Public Service Modernization Act (PSMA)
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Transfer from Western Economic and Diversification in support of Minister's Regional Office in Saskatchewan
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Federal Accountability Act – Evaluation Resources
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Cabinet Directive on Streamlining of Recommendations
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Adjustment to Corporate Tax Administration for Ontario (CTAO) from Planned Spending
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Adjustment to EI administration costs
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Offshore Trusts Initiative
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Adjustment to CPP administration costs
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Reduction to rates – Employee Benefits Plans
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Adjustment to Payments to Private Collection Agencies
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Transfer to Foreign Affairs and International Trade in support of Missions Abroad
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Transfer to Public Service Human Resources Management Agency of Canada to support National Managers' Community
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Minister's Salary and Motor Car Allowance
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Total Authorities at year-end
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Table 3 Reconciliation to the Statement of Operations
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(in thousands of dollars)
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Financial Statements Adjustments
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Services provided without charge (See Financial Statements – Note 11)
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Non-Tax Revenue – Respendable (see Financial Statements – Note 10)
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Non-Tax Revenue – Non-Respendable (See Financial Statements – Note 10)
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Other adjustments to accrual from modified cash
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Transfers to Provinces under the Softwood Lumber Products Export Charge Act, 2006
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Children's Special Allowance (CSA)
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Energy Cost Assistance Measures
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Relief for Heating Expenses
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Total Net Cost of Operations (from Statement of Operations – Agency Activities)[Footnote 2]
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[Footnote 1] Actual spending, on a modified cash basis, is net of revenues credited to the Vote 1.
[Footnote 2] Net cost of Operations (Expenses less Non-Tax Revenue) from the Statement of Operations – Agency Activities is presented on the accrual basis of accounting.
Audited Financial Statements – Agency Activities
For supplementary information on the Agency's Audited Financial Statements, please visit http://www.cra-arc.gc.ca/gncy/nnnl/menu-eng.html
3.3 Additional Supplementary Information Tables
Sustainable Development
Protecting our environment and pursuing efficient operations go hand in hand at the CRA. By using fewer resources, while optimizing our services, we reduce our operating costs and preserve valuable natural resources. One illustration of this principle is our use of office paper. The table below
shows that, since the implementation of our paper reduction strategy in 2002-2003, the overall trend reveals a reduction in the amount of paper used per employee as well as lower office paper expenditures.
Annual Office Paper Consumption
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Average Consumption per FTE in Sheets
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Office Paper Expenditures
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Our employees are essential and willing partners in our pursuit of environmental excellence. A 2007 survey indicated that 89% of employees were aware of the sustainable development efforts in our organization. Of those, 94% have reduced paper consumption, 92% have increased recycling, and 91% have reduced their energy consumption.
Our current efforts are guided by our 2007-2010 Sustainable Development Strategy. The strategy sets out our agenda for reducing the impact of our operations on the environment, delivering our programs in a more sustainable way, engaging our employees, and building essential support systems for sustainable development.
For more information on our Sustainable Development performance, please visit:
http://www.cra-arc.gc.ca/gncy/sstnbl/prfrmnc/menu-eng.html
Response to Parliamentary Committees and External Audits
For supplementary information on the Agency's Response to Parliamentary Committees and External Audits please visit:
http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp
Internal Audits and Evaluations
For supplementary information on the Agency's Internal Audits and Evaluations, please visit:
http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp
Travel Policies
For supplementary information on the Agency's Travel Policies, please visit:
http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp