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Parliament created the Canada Customs and Revenue Agency (CCRA) in 1999 (on December 12, 2003, the Government transferred the customs function of the CCRA to the Canada Border Services Agency/CBSA) to meet three objectives:
Consolidating service delivery in the CRA reduces government duplication and makes it simpler and easier for individuals and businesses to meet their tax obligations and receive benefits.
The Agency’s unique governance model and powers were designed to help accomplish these objectives. It has a Minister, Board of Management, and Commissioner/Chief Executive Officer, each with distinct responsibilities and accountabilities, and it has been vested with full responsibility for human resources (HR) management, administrative matters, real property, procurement, and contracting.
During its first five years, the Agency focused on implementing the governance model and overhauling HR and administrative policies and systems. The result is that the CRA is now a strong, flexible, efficient, and accountable organization that is well managed. As a consequence, the Agency now has a solid and secure base from which to continue developing into an agency that operates nationwide and serves an increasing number of clients.
This section of the Report on Plans and Priorities sets out “Agency 2010”—a vision for the Agency which will guide our progress and focus our efforts over the next several years.
Tax and benefits systems that function well are fundamental to the economic, fiscal, and social health of a nation. Ensuring that these systems are administered as efficiently and effectively as possible is an objective that is shared by all levels of government.
Empowered by unique governance features and authorities, the CRA has become a highly efficient and accountable multi-jurisdictional administrator of tax, revenue, and benefit programs. By operating as the interface between governments and taxpayers and benefit recipients, the CRA has been able to integrate information, improve services to Canadians and lower the cost of administration for governments.
The demand for CRA services has been growing steadily, primarily because the CRA’s competitive advantages makes economic sense for our clients. Taxpayers, especially businesses, find it much more effective to deal with a single payment process or single auditor for all their taxes, benefits and related issues.
In providing the interface between its clients and taxpayers/benefit recipients, the CRA may also work with partners. Partners are defined as: “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”. Partners include international associations, treaty partners, foreign countries, and provincial and territorial governments.
In many respects, the CRA is already an organization with a coast-to-coast-to-coast presence and approach to its operations. Relying on a Canada-wide service delivery network and distributed processing operations, the Agency handles revenue collection and benefit administration at the federal level, and within provincial, territorial and First Nations jurisdictions to varying degrees. The Agency intends to further increase its national presence, and enhance its accountability to clients through better reporting performance and increased responsiveness.
This approach will allow the CRA to realize fully the objectives established for the Agency in 1999, and Canadians will benefit from improved and integrated services and more efficient, effective program delivery. As an organization that operates nationwide, the CRA will become the key interface between citizens and their governments and tax and benefits administration will be simplified.
Over the coming years, the CRA will pursue a strategy based on three themes:
1. a core business capacity that is well-defined, modern, and high-performing;
2. a governance model that reflects the best possible blend of autonomy and accountability, rigour and sensitivity; and
3. the pursuit of business opportunities which the Agency could deliver on behalf of its clients.
It is imperative that we concentrate on the core business of the Agency, maintain, and where necessary strengthen, the critical elements that support it. The evolution of the Agency can succeed only if its principal focus remains on what it is mandated to do by law, and what it does best.
The core business of the CRA is tax administration, revenue collection, and benefits administration. This is where our expertise lies and where we will concentrate our efforts as we identify opportunities to grow the programs and services that we deliver. Effective compliance and service delivery are key elements to the core business. The Agency will continue to strive for excellence in service delivery and compliance, as we did in the first five years of the Agency’s existence.
To support its core business, the Agency has, over the years, developed particular capacities in:
b) Strengthening Infrastructure
The Agency has a large, well-trained, and experienced workforce, extensive regional operations (with 78 percent of its workforce distributed across Canada), one of the largest information technology bases in the country, and a strong management cadre. The CRA infrastructure is the foundation on which our core business is built and operates. Over the next several years, we will further strengthen this infrastructure by:
These measures will ensure that the Agency has the capacity to deliver high quality and cost effective programs and services. They will also ensure that the CRA can attract, maintain, and retain a highly skilled and motivated workforce.
Taxpayers’ trust in the integrity and fairness of tax administration is critical to our self-assessment system, because without it, non-compliance would certainly increase. Over the next several years, we will continue to give paramount attention and importance to maintaining the integrity and fairness of the tax system. Specifically:
d) Managing Human Resources and Labour Relations
During its first five years, the Agency completely revamped policies, procedures, systems, and structures in such areas as staffing, classification, compensation, and labour relations. Most of the new systems have been put in place. Over the next several years, a comprehensive Workplace Strategy will be developed and implemented in support of Agency 2010.
The overhaul was undertaken in consultation with the unions. The Agency is working hard at a constructive and respectful relationship with the unions, the Public Service Alliance of Canada (PSAC) and the Professional Institute of the Public Service of Canada (PIPSC) and intends to further strengthen the existing spirit of co-operation across the country through a variety of union-management initiatives.
The CRA has a unique governance model that differs markedly from that of its predecessor, Revenue Canada, as well as the regimes of other federal/provincial departments and agencies. A tax administration such as the CRA needs to demonstrate impartiality in applying legislation, as well as sensitivity to ensure that taxpayers receive the full benefit of the law. It needs to ensure rigour and probity in the handling of public monies and information, and professionalism and accountability.
The governance model assigns roles, responsibilities, and accountabilities to the Minister, Board of Management, and Commissioner/CEO.
The adoption of the CRA’s Governance Model has produced significant results, as documented in our annual reports, and the comprehensive five-year report tabled in Parliament in May 2005. The Auditor General has commented positively on the nature of these reports to Parliament. Accountability to Parliament and the provinces/territories has been greatly enhanced. We have adopted a code of values and ethics that stresses sensitivity in dealings with taxpayers and benefit recipients, and ensures probity and rigour in our internal systems. The Agency is subjected annually to over 135,000 hours of audits from various sources and all the final audit reports are posted on the Agency’s Web Site.
During the next several years, we will:
The CRA believes that it offers competitive advantages. If seized upon, these will provide citizens with better service, lower cost administration, and more effective compliance.
A business development strategy based on the CRA’s advantages also enables the Agency to attract and retain an experienced, knowledgeable workforce across Canada.
While the work of implementing Agency 2010 will extend over the next several years, we intend to aggressively pursue several activities in the short term. Their success is fundamental to the longer-term evolution into an agency that extends coast-to-coast-to-coast. Over the next three years, we will undertake the following activities:
1. Clearly articulate the “value proposition” advanced by the Agency: effectiveness and responsiveness for clients (with clear accountabilities) and a simpler, less burdensome interface for Canadians, through the integration of programs and services.
2. Clearly define our core business, along with the competencies that enable us to perform at an optimal level.
3. Analyze the potential market for CRA (referring to our core competencies and core business expertise). This will include various governments and, where appropriate, government-funded or managed entities (e.g., Workers’ Compensation Boards).
4. Identify how we will build and put into operation a business development capacity to manage the strategic interface and overall relationship with clients.
5. Develop a communication strategy that repositions the Agency as a valued nationwide institution and advances our reputation as an effective, responsive and trustworthy organization.
6. Refine the governance model to reflect the maturing and strengthened capability of the Board of Management. The updated model will include a reinvigorated integrated risk management function.
7. Strengthen accountability frameworks for existing and new clients through customized accountabilities and enhanced information/reporting systems.
8. Provide increased service standards and improve upon the current avenues of rights and appeals for clients and taxpayers.
9. Develop a plan to ensure our infrastructure is aligned with Agency 2010, including:
10. Establish an investment plan for increased flexibility and mobility regarding our:
The table on this page highlights the key activities we will pursue over the next several years as we move to become a nationwide agency.
For the tax, revenue collection, and benefit programs that we deliver now or in the future, we will serve as the key interface between governments and the individuals, businesses, benefit recipients, charities, and trusts served by those programs. This interface will broaden, deepen, and become more important as we take responsibility for new programs. The efforts to solidify our position as an agency that operates nationwide will benefit both our clients and the citizens they serve; governments will enjoy lower administration costs and more effective compliance; citizens will receive more comprehensive, better-integrated services that are simpler for them to use and lighten their compliance burden. In short, both governments and Canadians will be winners.