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Section II: Analysis of Program Activities by Strategic Outcome
Taxpayer and Business Assistance (PA1)
Benefit to Canadians
Our Taxpayer and Business Assistance area 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,
in-person, and outreach). In addition, we provide rulings and interpretations to clarify and interpret tax laws, and administer
federal tax legislation governing registered plans and charities.
We carry out this program activity to achieve the following Expected Results:
Taxpayers, businesses and registrants have access to timely and accurate information
and services and are ensured fair administration of the tax system through responsible enforcement.
Spending Profile: (thousands of dollars)
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Total Authorities
2008-2009
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Actual Spending
2008-2009
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A Snapshot of Taxpayer and Business Assistance (PA1)
Notable Achievements by Sub-Activity
- Enquiries and Information Services – We handled more
than 17.8 million public enquiries and over 32.7 million visits to taxpayer services web based information products
pages.
- Excise and
GST/HST Rulings and Interpretations
– We processed 3,908 written enquiries for rulings and interpretations, and handled almost 101,000
GST/HST-related technical telephone enquiries.
- CPP/EI
Rulings – We processed over 71,000 requests for rulings.
- Registered Plans – We administered over 33,000 plans,
and conducted 444 audits.
- Charities – We administered more than 84,000 registered
charities, processed over 86,000 returns, and conducted 853 audits.
Figure 6: Actual Spending
In 2008-2009, spending for this program activity totalled $605
million (4,844 FTEs) or 14.4% of the
CRA’s overall expenditures.* Of this $605 million, $483 million was net
program expenditures* and $122 million was allocated to this program activity for internal services.
* Spending figures for sub-activities may not add up to this
total due to rounding.
Contribution to Agency Priority
Strengthening Service
In support of this priority, in 2008-2009 we accomplished
the following:
As identified in our 2008-2009 Report on Plans
and Priorities
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Continue to expand channel convergence
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In 2008-2009, we expanded our Smartlinks service by adding new links
to selected Web pages for individuals.
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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. Our expanded Smartlinks program provided direct telephone access to subject matter experts for
over 34,000 taxpayers, a 34.2% increase from the previous year.
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Enhance targeting and customization of outreach programs
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We tailored new outreach programs and initiatives to the diverse
needs of taxpayers. These included pre-retirement seminars, small business seminars, and other presentations
about timely topics such as job losses resulting from the economic downturn.
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Volunteers working with the Community Volunteer Income Tax Program
were trained using a new CD. This ensured uniform volunteer training in order to improve the quality of
service.
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Continue to improve quality of information services provided
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We enhanced our National Quality and Accuracy Learning Program, a
learning tool designed to assist our agents in improving the quality and accuracy of the service they provide.
Results on call quality and accuracy are used in part to identify training needs, emerging issues and trends.
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We converted more of our paper-based training products to online
and e-learning training products. In addition, we improved the navigation between the agent’s desktop and
online reference material, resulting in faster access to the information needed to address taxpayer enquiries.
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In 2008-2009, we met our service standards for answering general
and business tax telephone calls in a timely manner. We also exceeded our services standard for answering
charities enquiries.
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Implement a new tobacco product stamping regime with covert and overt
security features
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As a major step to prevent contraband tobacco products from entering
the Canadian market, and to support the Government of Canada’s health objectives, a prototype tobacco excise
stamp was released and is currently being tested by the tobacco industry. Implementation is targeted for
early 2010.
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Fully implement the Softwood Lumber Products Export Charge Act,
2006 legislation
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In support of the implementation of the Softwood Lumber Products
Export Charge Act, 2006, we followed through on our commitment to work with exporters to promote continual
compliance. We conducted verification activities to audit the books and records of exporters participating
in the Softwood Lumber Export Charge program.
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Modernize and strengthen the charities program
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We modernized and strengthened our charities program through activities
such as delivering our first charities information session via online “webinar”, revising the annual information
return, and improving the search and display functionality of charities internet forms.
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We did not meet our performance targets for responding to simple
and regular charities applications within the established timeframes.Due to a high inventory of charities
files that needed to be processed, as well as staffing shortages and high employee turnover, a performance
shortfall resulted. Steps have been taken to resolve this and it is expected that targets will be met by
the end of 2009-2010.
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Performance Report Card
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Taxpayers, businesses, and registrants have access to timely and
accurate information
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General calls answered within two minutes of entering the queue
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Business calls answered within two minutes of entering the queue
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Charities calls answered within two minutes of entering the queue
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Respond to written requests for
GST/HST rulings and interpretations
within 45 working days of receipt of request [Footnote 1]
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Average number of days to issue an income tax technical interpretation
to taxpayers
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Average number of days to issue an advance income tax ruling to taxpayers
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Percentage of
CPP/EI rulings issued within targeted
time frames
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Percentage of responses to simple applications for charitable registration
within targeted time frames (2 months)
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Percentage of responses to regular applications for charitable registration
within targeted time frames (6 months)
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Percentage of registered plans applications reviewed within established
time frames
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Percentage of accurately updated internal reference materials for
taxpayer services and charities agents
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General callers that reach our telephone service
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Business callers that reach our telephone service
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Charities callers that reach our telephone service
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[Footnote 1] The target was raised from 75%
to 80% in 2008-2009.
[Footnote 2] This became a service standard
in 2006-2007. Prior-year results reflect performance against a performance target.
For supplementary information on this Program Activity, please visit:
www.cra.gc.ca/annualreport
Performance Report Card
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Non compliance is detected and addressed
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Percentage of excise regulatory reviews completed compared to planned
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Percentage of excise audits completed compared to planned
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Percentage of registered pension plan audits completed compared to
planned
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Percentage of registered charities audits completed compared to planned
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For supplementary information on this Program Activity, please visit:
www.cra.gc.ca/annualreport
Assessment of Returns and Payment Processing (PA2)
Benefit to Canadians
Our programs contribute to individuals and businesses meeting their filing, reporting,
and payment obligations. 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.
We carry out this program activity to achieve the following Expected Result:
Taxfilers receive timely and accurate assessment notices and payment processing
for Individual Income Tax, Corporation Income Tax and GST/HST
Returns, Excise and Other Levies and adequate checks and balances exist to ensure compliance with applicable tax laws.
Spending Profile: (thousands of dollars)
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Actual Spending
2008-2009
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A Snapshot of Assessment of Returns and Payment Processing (PA2)
Notable Achievements by Sub-Activity
- Individual Returns Processing – We processed more than 27
million individual returns; refunded $26.6 billion to nearly 17.9 million individual taxpayers; and processed
over 210,000 T3 trust returns. There were almost 321,000 individuals enrolled
and over 3.8 million visits to My Account.
- Business Returns Processing – We processed almost 1.6 million
information returns, more than 1.8 million corporate returns and more than 34.7 million payments, totalling almost
$366 billion.
Figure 7: Actual Spending
In 2008-2009, spending for this program activity totalled $885
million (8,772 FTEs) or 21.1% of the
CRA’s overall expenditures.* Of this $885 million, $646 million was for
net program expenditures, and $239 million was allocated to this program activity for internal services.
* Spending figures for sub-activities may not add up to this
total due to rounding.
Contribution to Agency Priorities
Strengthening Service and Enhancing our Efforts to
Address Non-Compliance
In support of this priority, in 2008-2009 we accomplished
the following:
As identified in our 2008-2009 Report on Plans
and Priorities
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Provide enhanced Internet services
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Our online self-service offerings continue to attract considerable
interest from individuals and businesses.
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Successful log-ins to My Account for individuals have increased 17%
this fiscal year over last, and the number of new individual My Account enrolments increased 2% over the
same period.
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In 2008-2009, My Business Account registered over 351,000 successful
log-ins, as compared with almost 111,000 in 2007-2008. We believe that our efforts to enhance the overall
functionality of this service is proving popular with business owners.
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The number of registrants for our Represent a client service has
increased by close to 42%. We expect this upward trend to continue as more representatives become authorized
for online access and begin taking advantage of My Business Account’s features.
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Implement the redeveloped
GST/HST system and return
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We made additional enhancements to our new
GST/HST system.
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Implement the Corporate Tax Administration for Ontario initiative
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We implemented the business requirements to enable the processing
of harmonized T2 returns as of April 1, 2009.
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Implement initiatives of the Action Task Force on Small Business
Issues
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In response to items identified in the Report of the Canada Revenue
Agency’s Action Task Force on Small Business Issues, we issued a Final Report
on Action Items to the action task force members in November 2008. Of the 61 identified actions items, 31
items were completed and the remaining 30 represent ongoing activities. The report can be viewed at
www.cra.gc.ca/atfreport.
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The Performance Measurement Framework
for Compliance Burden Reduction, which measures compliance costs in time and money, will be used to
report on future progress in burden reduction measures. This framework can be viewed at
www.cra.gc.ca/atfreport.
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Performance Report Card
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Assessment and payment processing are timely and accurate
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Processing T1 individual income tax returns: paper within 4-6 weeks 2
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Processing T1 individual income tax returns: electronic within 2
weeks [Footnote 2]
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Percentage of
GST/HST returns processed within
21 days
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Percentage of
GST/HST returns processed within
30 days [Footnote 3]
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Processing T2 corporation income tax returns within 60 days
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Processing Excise Tax, Excise Duty, and Air Travellers Security Charge
return within 90 days
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Percentage of funds from non-electronic payments deposited within
24 hours of receipt
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T1 returns received on time processed by mid-June
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Electronic Processing Take-Up
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Percentage of individuals and corporations who file electronically
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Percentage of T1 returns assessed accurately
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Taxpayer-requested adjustments reassessed accurately
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[Footnote 3] The standard was changed from
21 days to 30 days to align with legislative change.
For supplementary information on this Program Activity, please visit:
www.cra.gc.ca/annualreport
Accounts Receivable and Returns Compliance (PA3)
Benefit to Canadians
Our Accounts Receivable and Returns Compliance area manages the largest debt collection
service in Canada, including receivables arising from income tax,
GST/HST, the Canada Pension Plan, Employment Insurance,
and defaulted Canada student loans. In addition, this area promotes compliance with Canada’s tax legislation covering employers,
payroll, and the GST/HST.
We carry out this program activity to achieve the following Expected
Result:
Non-compliance with the filing, registration, and remitting requirements of the
Income Tax Act, the Excise Tax Act and other legislation are identified and addressed and the level of
debt is managed to ensure that taxpayers pay their required share.
Spending Profile: (thousands of dollars)
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Total Authorities
2008-2009
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Actual Spending
2008-2009
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A Snapshot of Accounts Receivable and Returns Compliance (PA3)
Notable Achievements by Sub-Activity
- Accounts Receivable –
TSO cash collections totalled $16 billion, which includes cash collections
from National Pools of more than $1.0 billion and from large accounts totalled over $8.3 billion.
- Trust Accounts – More than 787,000 returns were obtained
from individuals and corporate taxpayers who had not filed their returns, more than 7,000
GST/HST non-registrants were identified,
and 647,320 payroll exams and reviews were completed. Our Contract Payment Reporting Initiative secured a total
of over 61,000 additional individual and corporate tax returns.
Figure 8: Actual Spending
In 2008-2009, spending for this program activity totalled $724
million (9,238 FTEs) or 17.2% of the
CRA’s overall expenditures.* Of this $724 million, $498 million was for
net program expenditures, and $226 million was allocated to this program activity for internal services.
* Spending figures for sub-activities may not add up to this
total due to rounding.
Contribution to Agency Priority
Enhancing our Efforts to Address Non-Compliance
In support of this priority, in 2008-2009 we accomplished
the following:
As identified in our 2008-2009 Report on Plans
and Priorities
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Implement business transformation processes
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Over the past several years, we have been developing the Integrated
Revenue Collections ( IRC) platform, the framework
upon which our business transformation is built. IRC
technology has enabled us to access large amounts of taxpayer data related to both returns compliance and
accounts receivable. In turn, this has enabled us to identify trends, patterns, and relationships to guide
our development of strategies aimed at increasing the levels of compliance and revenue recovery. During
2008-2009, our IRC project yielded a new toolset
that we began to use to analyze taxpayer accounts with a view to increasing the dollar recovery potential
of the files we select for collections action. We also completed a pilot project in our non-filer/non-registrant
area to refine and enhance related account file selection processes.
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Also in 2008-2009, we enhanced our collections risk management framework,
which enabled us to better identify those sectors that present a higher degree of collections risk. Based
on the results of our study, we are examining a subset of these industries in order to implement some specific
collection strategies in 2010-2011.
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To further help us keep tax debt within targeted levels, we strengthened
our accountabilities by establishing clear and concise performance measurements in 2008-2009. For example,
we introduced a single resolution target range in place of separate targets for cash and write-offs to strengthen
our Tax Services Office ( TSO) agents’ focus on resolving
all accounts. We also modified our target for the value of TSO
accounts receivable older than five years from a percentage value to a dollar value. Debt over five years,
when expressed in percentage terms was dependent on the value of new intake. When expressed in dollar terms,
the debt over five years becomes a more concrete target.
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Our strategies to improve our capacity to manage the tax debt as
well as detect and address non-compliance are beginning to have a tangible impact on our achievements related
to our expected results.
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Performance Report Card
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Tax and non-tax debt are resolved on a timely basis and are within
targeted levels
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Percentage of intake resolved in the year of intake
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Dollar value of TSO
production as a percentage of dollar value of TSO intake
of new accounts receivable
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Dollar value of TSO
tax accounts receivable older than five years ($ billions) [Footnote 1]
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TSO cash collections
($ billions)
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Non-tax debt – Dollars collected ($ millions)
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Non-compliance is detected and addressed
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T1/T2 non-filers/ GST/HST non-registrant non-compliance ($ billions)
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Employer/payroll/ GST/HST non-compliance ($ billions)
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[Footnote 1] Target excludes
GST/HST delinquent filer program.
[Footnote 2] 2007-2008 data unavailable due
to
GST/HST system redesign.
For supplementary information on this Program Activity, please visit:
www.cra.gc.ca/annualreport
Reporting Compliance (PA4)
Benefit to Canadians
We undertake examinations, audits, and investigations to ensure compliance with
Canada’s tax laws. This includes verification and enforcement activities at the domestic and international level, including
the administration of international tax agreements. We also provide information to taxpayers to help them comply. We conduct
research to improve identification of non-compliance and develop strategies to address it.
We carry out this program activity to achieve the following Expected Result:
Audits, examinations, mandatory reviews, investigations, prosecutions and voluntary
disclosures detect and address non-compliance with the reporting requirements of the Acts administered by the
CRA.
Spending Profile: (thousands of dollars)
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Total Authorities 2008-2009
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Actual Spending
2008-2009
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A Snapshot of Reporting Compliance (PA4)
Notable Achievements by Sub-Activity
- International and large businesses – We conducted over
41,000 audits, resulting in a fiscal impact of $5.2 billion.
- Small and medium-sized enterprises – We conducted over
323,000 audits and examinations, resulting in a fiscal impact of $2.2 billion.
- Enforcements and disclosures – We conducted 874 audits
under the Special Enforcement Program, resulting in a fiscal impact of $187 million. Under the Criminal Investigations
Program, we referred 164 income tax and GST/HST
investigations for prosecution.
- Scientific Research and Experimental Development Program
– This program provided more than $4 billion in tax assistance to over 18,000 claimants.
Figure 9: Actual Spending
In 2008-2009, spending for this program activity totalled $1.4
billion (13,332 FTE’s) or 33.6% of the
CRA’s overall expenditures. * Of this $1.4 billion, $1.038 billion was
net program expenditures and $375 million was allocated to this program activity for internal services.
* Spending figures for sub-activities may not add up to this
total due to rounding.
Contribution to Agency Priorities
Strengthening Service and Enhancing our Efforts to Address Non-Compliance
In support of this priority, in 2008-2009 we accomplished
the following:
As identified in our 2008-2009 Report on Plans
and Priorities
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We strive to understand the compliance risks that challenge the Canadian
tax system. The first Compliance Review in 2004-2005 identified four main high risk compliance areas, including
aggressive tax planning, GST/HST
high risk, the underground economy, and revenue collection and non-filers/non-registrants to develop an
agenda for strengthening compliance and integrity, both short and long term.
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A second Compliance Review was initiated during 2007-2008. The objective
of this exercise was to identify or confirm existing compliance priorities set out in our first Compliance
Review and recommend new or revised strategies for addressing them.
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The second Compliance Review exercise identified five major compliance
priorities, which were aggressive tax planning, the underground economy, payment compliance, willful non-compliance,
and contraband tobacco.
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Some tax intermediaries promote aggressive tax plans and schemes
which go beyond the spirit of the law and are designed to obtain tax advantages that were not intended by
government. These abusive schemes and transactions are used to reduce, avoid, or evade Canadian taxes sometimes
through international transactions and, in particular, through the use of tax havens. Left unchecked, the
integrity and fairness of Canada’s tax system could be at risk.
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In 2008-2009, we met our audit targets related to the high risk compliance
area of aggressive tax planning by completing cases involving aggressive domestic and international tax
planning, high-risk international tax avoidance, complex high risk international issues, and tax shelters.
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Our compliance activities also target aggressive inter-provincial
tax planning including any and all inappropriate attempts to shift income or profits between provinces to
reduce or avoid paying provincial taxes. We are also developing an inter-provincial tax avoidance and provincial
income allocation action plan for implementation in 2009-2010. In preparation, we have dedicated resources
to address files where federal tax is not at issue but provincial tax is being avoided. In addition we have
also established five interprovincial tax avoidance centres of expertise to undertake research on provincial
issues and possible strategies that are in use or could be in use.
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The underground economy ( UE)
undermines the competitiveness of Canadian businesses because it offers an unfair, illegal advantage to
those who fail to comply with Canada’s tax laws.
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During 2008-2009 we conducted over 12,800
UE audits, resulting in over $265 million in fiscal impact.
We evaluated the results of the 2005-2006 UE pilot projects
and where results were positive we incorporated the activities into our regular work activity.
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GST/HST
High Risk Compliance
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Our approach to
GST/HST compliance is to strengthen
our Agency-wide capacity, enhance our enforcement activities, improve our ability to identify high-risk
registrants and refund claims before refunds are issued, and broaden our engagement of stakeholders. Assessing
the level of compliance is the first step in developing a compliance strategy for
GST/HST refund claims, therefore
the Agency initiated a project to estimate overstatements using post payment audits of credit returns filed
in 2004. The report from the audits of 2,200 randomly chosen
GST/HST refund claims has been analyzed
and we are looking at how to best integrate recommendations into our workload. Furthermore, we acquired
investigative analysis software to aid in the detection of non-compliance as well as enhance our risk rating,
analysis, and audit functions.
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Compliance Communications Strategy
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Significant progress has been made over the past year in successfully
implementing the many activities outlined in the action plan.
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Some of the activities carried out in the past year include publishing
of new Tax Alerts, News Canada articles, News releases, special Web pages, and a trade school education
initiative.
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Scientific Research and Experimental Development ( SR&ED) Program administration enhancement
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During 2008-2009, we made it easier for businesses to apply for this
tax credit by publishing a simplified claim form and associated guide, as well as a new
CD-ROM, brochure and leaflet. In addition, we developed a Web-based
SR&ED Eligibility Self-Assessment
Tool ( ESAT) to help claimants identify whether
their research and development projects may qualify under the program. Statistics on Web visits to our
SR&ED home page indicate
that awareness of our SR&ED
program has increased, which we attribute, in part, to our release of these new products.
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Performance Report Card
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Non-compliance is detected and addressed
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Number of files audited as a percentage of estimate:
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International and large businesses
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Small and medium-sized enterprises ( SME)
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Effective assessment of risk and detection of reporting non-compliance
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Fiscal Impact ($ Billion)
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[Footnote 1] The Core Audit Program selects,
in multi-year intervals, random samples of tax files from different segments of the
SME population for auditing, in an effort to estimate
a reliable non-compliance rate. This year, the
CAP sampled T2 population
where gross revenues were less than $12,000,000 and non-compliance was greater than $5,000 in federal tax.
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Processing is timely and accurate
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Processing non-resident regulation 105 waiver requests (within 30
days)
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SR&ED refundable claims
(within 120 days)
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Video and film tax credits – refundable claims – audited (within
120 days)
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For supplementary information on this Program Activity, please visit:
www.cra.gc.ca/annualreport
Appeals ( PA5)
Benefit to Canadians
We strive to make fair and timely dispute resolution available to taxpayers and
benefit recipients. Taxpayers can dispute assessments and determinations pertaining to income tax and commodity taxes, as
well as CPP/EI assessments and rulings.
Our Service Complaints Program provides taxpayers with a formal resolution process
for complaints. We also administer taxpayer relief provisions, which help taxpayers who are unable to meet their tax obligations
because of extraordinary circumstances.
We carry out this program activity to achieve the following Expected Result:
Taxpayers receive a timely and impartial review of contested decisions made under
the Income Tax Act, the Excise Tax Acts, the Canada Pension Plan and the Employment Insurance Act, and
timely updates to service complaints.
Spending Profile: (thousands of dollars)
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Total Authorities 2008-2009
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Actual Spending
2008-2009
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A Snapshot of Appeals (PA5)
Notable Achievements by Sub-Activity
- Appeals – We resolved over 67,000 disputes, representing
over $2.6 billion in taxes. Over 109,000 disputes remain in workable and non-workable inventory, totalling
more than $12.2 billion in taxes.
- Taxpayer Relief Provisions – Over 63,000 requests for
relief from interest and penalties were processed by the CRA. Approximately
39,000 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 $913 million.
- Service Complaints – More than 2,500 service complaints
were processed.
Figure 10: Actual Spending
In 2008-2009, spending for this program activity totalled $169
million (1,521 FTE’s) or 4.0% of the
CRA’s overall expenditures. * Of this $169 million, $132 million was for
net program expenditures, and $37 million was allocated to this program activity for internal services.
* Spending figures for sub-activities may not add up to this
total due to rounding.
Contribution to Agency Priorities
Strengthening Service and Reinforcing Trust
In support of this priority, in 2008-2009 we accomplished
the following:
As identified in our 2008-2009 Report on Plans
and Priorities
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Improve consistency in the agency-wide administration of the Taxpayer
Relief Provisions
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A key aspect of our commitment to fairness is our mandate to consider
relief to taxpayers through the taxpayer relief provisions contained in the various acts we administer.
This year, we completed system enhancements which are intended to complement the program’s fairness and
consistency. We improved data capture and program reporting of emerging trends to enhance our monitoring
and identification of issues relating to taxpayer provisions. We expect these measures will translate into
increased consistency of service for taxpayers.
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Review and strengthen core business processes and operations
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We completed the national implementation of centres of expertise
for our large file activities. This step enabled us to streamline our appeals processing activities, and
contributed to improved workload management, productivity, and consistency in the treatment of files. In
addition, we implemented a CPP/EI national
resource bank on our intranet to help resolve key dispute resolution issues. We believe that this enriched
work tool contributed to the 5% decrease in the number of workable days to complete a
CPP/EI case.
Taxpayers’ accessibility to their redress entitlements was made easier
this year through enhancements to our Web site. The “Register My Formal Dispute” sub-application of “My
Account” now enables electronic dispute submissions from self-employed individuals.
We took steps in 2008-2009 to improve our performance related to
CRA Service Complaints. We began the development of quarterly
reports to enable us to better understand complaint issues and deal with them effectively, as well as a
national complaint quality assurance program to establish service complaints standards. We also initiated
the integration of our Problem Resolution Program into our Service Complaints area so that we can make the
best use of our infrastructure.
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Performance Report Card
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Taxpayers receive an impartial and timely review of contested decisions
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Appeals activities that met standards for consistency
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Appeals activities that met standards for transparency
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Service standard for initial contact
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Average age of workable inventory (in days)
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Neutral or downward trend
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Neutral or downward trend
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Neutral or downward trend
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[Footnote 1] The overall rating is based
on whether or not results were achieved against established targets for the combined workloads.
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Service complaints and taxpayer relief provisions are administered
consistently
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- Service complaints – acknowledged within 48 hours
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- Service complaints – taxpayers contacted within 15 days
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- Taxpayer relief provisions – consistent application (per
Quality Assurance Program)
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For supplementary information on this Program Activity, please visit:
www.cra.gc.ca/annualreport
Benefit Programs (PA6)
Benefit to Canadians
Our Benefit Programs contribute directly to the economic and social well-being
of Canadians by delivering income-based and other benefits, credits, and services to eligible residents for federal, provincial,
and territorial governments. We administer the Canada Child Tax Benefit, the Goods and Services Tax/Harmonized Sales Tax
credit, and the Children’s Special Allowances, which are three core federal programs that issue benefit payments. We also
deliver the Universal Child Care Benefit (UCCB) on behalf of Human
Resources and Skills Development Canada and numerous ongoing and one-time benefit and credit programs and services on behalf
of provincial, territorial, and other federal government clients.
We carry out this program activity to achieve the following Expected Result:
Benefit recipients receive eligibility determinations and payments, and have access
to information, that is timely and accurate.
Spending Profile: (thousands of dollars)
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Total Authorities 2008-2009
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Actual Spending
2008-2009
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A Snapshot of Benefit Programs (PA6)
Notable Achievements by Sub-Activity
- Benefit Programs Client Services – We handled over 6.9
million telephone enquiries.
- Benefit Programs Administration – We issued almost 91
million benefit payments, totalling more than $16 billion to 11 million recipients. We determined $703 million in
Disability Tax Credit entitlements for over 510,000 individuals. We processed over 735,000 applications and marital
status change forms, over 688,000 account maintenance adjustments, and over 1.1 million in-year
GST/HST credit account redeterminations.
- Direct transfer payments under statutory programs –
We issued more than $211 million under the Children’s Special Allowances (CSA) program and over $488,000 under the Energy Cost Benefit program.
Figure 11: Actual Spending
In 2008-2009, spending for this program activity totalled $403
million (2,050 FTE’s) or 9.6% of the
CRA’s overall expenditures.* Of this $403 million, $342 million were net
program expenditures, and $61 million was allocated to this program activity for internal services.
* Spending figures for sub-activities may not add up to this
total due to rounding.
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 this priority, in 2008-2009 we accomplished
the following:
As identified in our 2008-2009 Report on Plans
and Priorities
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Continue to improve the quality of information services provided
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In 2008-2009, we enhanced our National Quality and Accuracy Learning
Program to help our agents improve the quality and accuracy of the service they provide. Results on call
quality and accuracy are used in part to identify training needs, as well as emerging issues and trends.
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In 2008-2009 we exceeded our service standard for answering
CCTB calls in a timely manner.
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Ensure the ability of our benefit delivery infrastructure to support
core business and growth
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We strengthened our infrastructure during 2008-2009 through enhancements
made to several of our core processing systems. We also enhanced Data Governance and Stewardship of all
Individual Identification data elements and improved the continuity of benefit payments in the event of
a system disruption or outage.
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Maintain high levels of service and accountability in core program
delivery
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We focused on increasing the accessibility and efficiency of our
programs and services, as well as enhancing our Internet-based, self-service options to ensure that benefit
recipients have timely access to the information they need.
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As a result of the enhancements to My Account, the number of visits
to Benefits Web pages increased by 18.8%, suggesting that more benefit recipients are using the self service
options on our Web pages.
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In 2008-2009 3.2 million inserts were sent to
CCTB recipients, 1.5 million inserts were sent to
UCCB recipients, and a targeted mailout was sent
to potential WITB advance payment recipients.
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Our outreach efforts are designed to increase our visibility in the
community, to encourage uptake of our programs, and to inform individuals of their entitlements and obligations.
We recognize that enrolment levels for many segments of the population, such as persons with disabilities,
new residents, and First Nations people, benefit from targeted outreach. In 2008-2009, we believe our outreach
activities were well received by our targeted audiences and contributed to increasing awareness and encouraged
voluntary compliance.
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We laid the groundwork for Automated Benefits Applications ( ABA), which will allow parents to apply for child and family benefits
when their child is born by checking a box on their provincial or territorial birth registration forms.
Our ABA initiative is an important step to improve
service by simplifying the benefit application process. It is also a vital compliance tool that provides
source data from provinces and territories to ensure timely, valid, and accurate application information.
We believe that by simplifying the benefit application process through
ABA we have reinforced our commitment to ensure
that eligible Canadians are aware of and can readily access the benefits and credits to which they are entitled.
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Maintain the confidence of benefit recipients and client governments
through strengthening validation and controls
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In 2008-2009, under the National Routing System, we received information
from five provinces on vital event data exchange such as births and deaths, further enhancing our data accuracy.
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We also target accounts identified as high-risk for potential overpayments
or underpayments for further verification. In 2008-2009, our results indicate that we used effective criteria
for selecting accounts for review and that we ensured benefits were paid only to those who qualify and were
in the correct amount.
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Although we reviewed fewer accounts in 2008-2009 than in the previous
year, our effective targeting identified greater financial consequences. During 2008-2009, our adjustments
uncovered $99 million in benefit and credit underpayments and over $260 million in overpayments an increase
from $81 million and $195 million respectively over the previous year. Where recipients were overpaid, we
offset amounts from future payments, refunds, and credits to which the recipients are entitled.
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Manage Business growth and partnerships
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We have a reputation for providing accurate, efficient, and cost-effective
delivery of many benefit and credit programs. The increase in data transfer and data exchange services we
deliver has grown from 58 in 2004-2005 to 93 in 2008-2009. We added a total of 16 programs and services
last year.
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Performance Report Card
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Benefit recipients have access to timely and accurate information
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Percentage of CCTB calls
answered within two minutes of entering the queue
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Percentage of
GST/HST credit calls answered within
two minutes of entering the queue
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Percentage of CCTB
callers that reach our telephone service [Footnote 1]
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Percentage of
GST/HST credit callers that reach
our telephone service
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[Footnote 1] Caller accessibility targets
were increased from 80% to 90% for 2008-2009.
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Eligibility determination and payment processing are timely and accurate
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| Our Indicators |
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Percentage of benefit applications and marital status change forms
processed on time
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Percentage of benefit recipients expressing satisfaction with the
service received
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Percentage of CCTB
accounts adjusted that were targeted under validation programs
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Percentage of accurate payments when processing benefit applications
and marital status change forms
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Percentage of accurate payments when processing account maintenance
adjustments
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Percentage of CCTB
accounts reviewed
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For supplementary information on this Program Activity, please visit:
www.cra.gc.ca/annualreport
Internal Services (PA7)
Benefit to Canadians
The CRA delivers high-quality
tax, benefit, and related services on behalf of governments across Canada. In support of our two strategic themes, our human
resources, information technology, and other horizontal management areas must be fully integrated to ensure that our tax
and benefit services have the guidance, infrastructure, and resources needed for successful delivery.
Contribution to Agency Priorities
This program activity supports all priorities within this organization.
In support of this priority, in 2008-2009 we accomplished
the following:
As identified in our 2008-2009 Report on Plans
and Priorities
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Human Resources Capacity and Capability: The Agency
Workforce Plan is a key element of our planning strategy and has three distinct themes:
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1 – Knowledge Transfer and Succession Planning:
In addition to our EC succession planning activities, in March 2009 we further strengthened our human resources
planning capacity by implementing the Non-EC Succession Planning Guidelines. These guidelines are aligned
with our Competency-Based Human Resources Management (CBHRM) approach and reinforce the importance of succession
planning activities in support of future business requirements.
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2 – Management of Employees’ Career and Development and Change
Management: We completed our annual review of both employee and manager performance management
cycles. The results of the review showed increased integration of competencies into performance management
which reinforces our CBHRM approach and contributes to talent management, both drivers of organizational
success. In 2008-2009, 94.5% of our employees had completed individual learning plans, exceeding our target
of 90% and our total investment spent on learning was approximately $170 million.
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3 – Strategic Recruitment and Reduced Time to Staff:
Important and fundamental steps towards advancing our CBHRM regime were taken. This initiative supports
the recommendations outlined by the Office of the Auditor General of Canada as a result of the audit conducted
in 2007-2008.
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Information Technology Solutions and Infrastructure
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In 2008-2009, we sustained our focus on ensuring our IT solutions
were robust, secure, and reliable.
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We maintained notably high levels of availability of our national
systems while concurrently meeting the challenges faced in safeguarding our IT assets from accidental or
deliberate security threats. We replaced certain existing mainframe computers to allow for the rapid expansion
of computing capacity to meet our needs. We further advanced our vulnerability assessment and management
capabilities through improved reporting on the health of the security of our entire networked computing
infrastructure. Notably, we reached a key milestone in 2008-2009 with our Network Services Enhancement Project
by finalizing the technical requirement for updated switching technology. Enhancements such as these, coupled
with implementation of our multi-year Managed Distributed Environment Program, addressed shortcomings in
our computing environment.
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The results we have achieved in support of sound comptrollership
strengthen accountability and oversight and promote the efficient and effective use of our financial resources.
In 2008-2009, we made improvements to our financial systems and processes and improved linkages between
CRA resources and the results we achieved.
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Our complete Risk Action Plan, which includes response strategies
and incompasses all 17 identified risks, was finalized and approved by our Board of Management in September
2008.
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During 2008-2009, we implemented the Continuous Controls Monitoring
pilot to support our confidence in the accuracy of our data and transactions.
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For 2008-2009, the Board had asked the Commissioner to evolve the
Board of Management Oversight Framework to include management performance measures and results to assess
the effectiveness of management processes in place. This was completed and the Board is proud to report
that the Assessment of the Agency revealed very positive results for 2008-2009; of the 21 expectations assessed,
the CRA was rated strong for 17 expectations and acceptable
for four.
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For supplementary information on this Program Activity, please visit:
www.cra.gc.ca/annualreport
