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Appendix A – Board of Management

Board Membership

The Board of Management of the Canada Revenue Agency comprises 15 members appointed by the Governor in Council. They include the Chair, the Commissioner and Chief Executive Officer, a director nominated by each province, one director nominated by the territories, and two directors nominated by the federal government. Members of the Board bring a private-sector perspective and business-like approach to management and, in this regard, have been championing a significant agenda for change within the CRA.

The following table shows Board membership as of January 2007.

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

Camille Belliveau, FCGA, CFP
Executive Director
Groupe EPR Canada Group Inc.
Shediac, New Brunswick

Myles Bourke, FCA
Corporate Director
Lethbridge, Alberta

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

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

Gordon Gillis, LL.B.
Lawyer/Consultant
Dartmouth, Nova Scotia

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

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

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

Rod Malcolm, CA
Corporate Director
Iqaluit, Nunavut

Patricia J. Mella
Corporate Director
Stratford, Prince Edward Island

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

Stephen E. Rudin, MSPH
Health Care Consultant
Toronto, Ontario

Sylvie Tessier, M.B.A, P.Eng.
Consulting Director
Sierra Systems
Toronto, Ontario

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

The Board of Management is responsible for overseeing the organization and administration of the Agency and the management of its resources, services, property, personnel and contracts. The Board is supported by four committees with mandates to assist the Board in fulfilling its oversight responsibilities. The role and membership of these committees are outlined below.


Board of Management Committees
Governance Committee
Mandate
The Governance Committee reviews all aspects of the Board’s governance framework to ensure that the Board functions in an effective and efficient manner that successfully supports the operations of the CRA.
Membership
Chair
C. Roveto
Vice-Chair
H. Leeson
Members
M. Dorais, 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.
Membership
Chair
J. Hewitt
Vice-Chair
R. Desrochers
Members
M. Bourke, 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, P. Mella, C. Roveto, S. Tessier
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 resource management strategies, initiatives and policies.
Membership
Chair
J. Nininger
Members
B. Buckle, M. Dorais, G. Gillis, H. Leeson, C. Roveto, S. Rudin

Appendix B – Organizational Structure


Organizational Structure

Appendix C – Financial Tables

Table 1: Agency Planned Spending and Full-Time Equivalents


 
 
 
Forecast Spending 2006-2007
Planned Spending 2007-2008
Planned Spending 2008-2009
Planned Spending 2009-2010
 
(thousands of dollars)
Program Activity
 
 
 
 
Taxpayer and Business Assistance
324,494
295,387
300,416
300,965
Assessment of Returns and Payment Processing
786,751
838,868
818,994
824,447
Accounts Receivable and Returns Compliance
704,117
751,791
759,095
765,491
Reporting Compliance
1,106,654
1,168,185
1,180,510
1,169,287
Appeals
137,121
153,811
153,322
153,608
Benefit Programs
321,446
335,843
342,245
349,944
 
Budgetary Main Estimates (gross)
3,380,583
3,543,885
3,554,582
3,563,742
 
Less: Revenues Credited to the Vote 1
152,330
163,961
163,814
163,931
 
Total Main Estimates
3,228,253
3,379,924
3,390,768
3,399,811
Adjustments
 
 
 
 
 
Carry Forward from 2005-2006
100,723
 
 
 
Supplementary Estimates
 
 
 
 
 
Budget measures arising from the 2006 Federal Budget
30,642
12,201
9,777
9,674
 
Budget measures arising from the 2005 Federal Budget
26,206
 
 
 
 
Budget measures arising from the 2004 Federal Budget
1,000
 
 
 
 
Realignment of resources
23,175
 
 
 
 
Payments to private collection agencies (S)
18,503
 
 
 
 
Transfer from Human Resources and Social Development Canada (HRSDC) – National Collections Services
18,166
 
 
 
 
Universal Child Care Benefit (UCCB)
16,416
 
 
 
 
Single administration of corporate tax for the Province of Ontario
13,884
48,508
50,009
50,013
 
National initiative to address inter-provincial tax avoidance by corporations
5,878
22,550
22,470
22,453
 
Canada/US Softwood Lumber Agreement
9,292
16,994
11,745
10,423
 
Paylist Shortfall from 2005-2006 to 2006-2007
3,150
 
 
 
 
Advertising Campaign
3,100
 
 
 
 
Energy Cost Benefit Allocation
1,025
 
 
 
 
Management of Government Information Policy and National Routing System
334
 
 
 
 
Official Languages Innovation Program
306
 
 
 
 
Offshore Trusts Initiative (legislation pending)
(24,289)
 
 
 
 
Expenditure Review Announcements – E-Procurement
(7,070)
 
 
 
 
Expenditure Review Announcements – Agency Initiatives
(698)
 
 
 
 
Transfer to Transport Canada – Crown Corporations Secretariat
(756)
 
 
 
 
138,264
100,253
94,001
92,563
Technical Adjustments:
 
 
 
 
 
Collective agreements/awards
59,541
 
 
 
 
Adjustment to Employee Benefits Program (EBP)
56,680
 
 
 
 
Maternity and Severance Payments
48,000
 
 
 
 
2006-2007 Adjustment to Respendable Revenues
41,750
 
 
 
 
Energy Cost Benefit Payments
16,500
 
 
 
 
2006-2007 Adjustment to CPP/EI work – Transfer from HRSDC
7,826
 
 
 
 
2006-2007 Adjustment to CPP/EI work – Quebec Parental Insurance Plan
3,460
 
 
 
 
Basic EI Administration Cost (Dec. Adjustment)
1,847
 
 
 
 
2006-2007 Adjustment to Revenues Credited to the Vote 1
(13,133)
 
 
 
 
TB Directed Lapse – Justice Costs
(10,591)
 
 
 
 
211,880
Total Adjustments
450,867
100,253
94,001
92,563
Total Planned Spending
3,679,120
3,480,177
3,484,769
3,492,374
Less:
Respendable Revenue pursuant to the CRA Act
137,839
143,637
150,991
151,018
 
Non-Respendable Non-Tax Revenue (Agency Activities)
37,597
37,597
37,597
37,597
Plus:
Cost of services received without charge1 
467,806
461,610
464,228
466,373
Total Agency Spending
3,971,490
3,760,553
3,760,409
3,770,132
Full-Time Equivalents
38,287
38,756
38,244
38,249

1 Refer to Table 3 for details.

Table 2: Voted and Statutory Items listed in Main Estimates


Vote or Statutory Item
Truncated Vote or Statutory Wording
Main Estimates 2007-2008
Main Estimates 2006-2007
 
 
(thousands of dollars)
1
Program expenditures and recoverable expenditures on behalf of the Canada Pension Plan and the Employment Insurance Act
2,607,505
2,551,607
(S)
Minister of National Revenue – Salary and motor car allowance
75
73
(S)
Spending of revenues received through the conduct of its operations pursuant to Section 60 of the Canada Revenue Agency Act
143,637
96,089
(S)
Contributions to employee benefit plans (EBP)
402,675
393,484
(S)
Children’s Special Allowance payments
205,000
187,000
(S)
Payments to private collection agencies pursuant to Section 17.1 of the Financial Administration Act
21,032
 
 
Total Agency
3,379,924
3,228,253

The 2007-2008 Main Estimates for the Canada Revenue Agency (CRA) increased by $151.7M from 2006-2007; the changes are comprised of:

A net increase of $55.9M in Vote 1 made up of:

  • an increase of $92.6M relates to the increase for collective agreements/awards
  • an increase of $16.5M is comprised of transfers from Human Resources and Social Development Canada for National Collections Services
  • an increase of $11.8M to address legislative, policy and operational initiatives arising from the Federal Budget including Universal Child Care Benefit, and other minor adjustments
  • offset by a decrease of $65M which relates primarily to government reductions such as Expenditure Review, E-Procurement, the 2006 Expenditure Restraint, and sunsetting initiatives including GST Redesign

An increase of $47.5M in Respendable Revenue reflecting an increased demand for information technology (IT) services by the Canada Border Services Agency (CBSA) as well as an increase in Provincial Tax Credit Fees.

An increase of $9.2M relates to Employee Benefit Plans.

An increase of $18M to the Children’s Special Allowance relates to allowances for eligible children in the care of specialized institutions.

An increase of $21M is comprised of transfers from Human Resources and Social Development Canada for payments to private collection agencies.

Table 3: Services Received Without Charge


 
2007-2008
 
(thousands of dollars)
Accommodation provided by Public Works and Government Services Canada (PWGSC)1 
245,202
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 of Canada (TBS)
156,670
Salary and associated expenditures of legal services provided by Justice Canada
54,455
Audit Services by the Office of the Auditor General
2,210
Workers’ Compensation coverage provided by Human Resources and Social Development Canada (HRSDC)
1,530
Payroll Services provided by Public Works and Government Services Canada (PWGSC)
1,542
Total 2007-2008 Services received without charge
461,610

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

Table 4: Sources of Respendable Revenue and Non-Respendable Non-Tax Revenue

Table 4.1: Respendable Revenue


Program Activity
Forecast Revenue 2006-2007
Planned Revenue 2007-2008
Planned Revenue 2008-2009
Planned Revenue 2009-2010
 
(thousands of dollars)
Taxpayer and Business Assistance
15,153
15,864
16,685
16,689
Assessment of Returns and Payment Processing
45,616
47,258
49,349
49,378
Accounts Receivable and Returns Compliance
29,136
30,860
32,677
32,674
Reporting Compliance
36,294
38,485
40,613
40,611
Appeals
4,913
5,221
5,525
5,525
Benefit Programs
6,727
5,949
6,142
6,141
 
Total Respendable Revenue
137,839
143,637
150,991
151,018
Details
 
 
 
 
Refund of Previous Years’ Expenditures
952
952
952
952
Ruling Fees1 
1,299
1,298
1,298
1,298
Advance Pricing Agreement
808
750
750
750
Other Services of a Regulatory Nature
100
449
470
464
Administration of Provincial Programs2 
27,578
26,430
26,217
26,214
Other Services of a Non-Regulatory Nature
663
760
779
780
Sales of Goods and Information Products
80
84
87
93
Other Fees & Charges
40
40
40
40
Services to Other Government Departments3 
106,319
112,874
120,398
120,427
Total Respendable Revenue
137,839
143,637
150,991
151,018

1 The Canada Revenue Agency (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 mainly of a basic fee charged to the provinces for recoveries provided under tax collection (TCA) and other agreements.
3 Comprised mainly of information technology services provided to the Canada Border Services Agency (CBSA) ($110M).

Table 4.2: Non-Respendable Non-Tax Revenue (Agency Activities)1 


Program Activity
Forecast Revenue 2006-2007
Planned Revenue 2007-2008
Planned Revenue 2008-2009
Planned Revenue 2009-2010
 
(thousands of dollars
Taxpayer and Business Assistance
3,671
3,671
3,671
3,671
Assessment of Returns and Payment Processing
9,458
9,458
9,458
9,458
Accounts Receivable and Returns Compliance
18,564
18,564
18,564
18,564
Reporting Compliance
2,073
2,073
2,073
2,073
Appeals
2,221
2,221
2,221
2,221
Benefit Programs
1,610
1,610
1,610
1,610
Total
37,597
37,597
37,597
37,597
Detail of Non-Respendable Non-Tax Revenue
 
 
 
 
Refunds of previous years’ expenditures
 
 
 
 
 
Adjustments to prior year’s payables
100
100
100
100
Sales of goods and services
 
 
 
 
 
Public building and property rental
149
149
149
149
Other fees and charges
 
 
 
 
 
Recovery of employee benefits
34,967
34,967
34,967
34,967
Miscellaneous
2,381
2,381
2,381
2,381
Total Non-Respendable Non-Tax Revenue
37,597
37,597
37,597
37,597

Table 5: Resource Requirements by Functional Organization for 2007-2008


 
2007-2008
 
Program Activity
Functional Organization
Taxpayer and Business Assistance
Assessment of Returns and Payment Processing 
Accounts Receivable and Returns Compliance
Reporting Compliance
Appeals
Benefit Programs  
Total Planned Spending
 
(thousands of dollars)
 
Assessment and Benefit Services Branch
436,717
279,1521 
715,869
Taxpayer Services and Debt Management Branch
119,742
438,952
204
20,741
579,639
Compliance Programs Branch
190
501
414
945,034
6,141
69
952,349
Appeals Branch
106,663
106,663
Legislative Policy and Regulatory Affairs Branch
81,377
8,159
14,777
7,877
2,047
1,125
115,362
Corporate Strategies and Business Development Branch
979
145,5802 
2,136
2,491
356
356
151,898
Executive Office
809
2,134
1,766
2,060
294
294
7,358
Assistant Commissioners, Regional Operations
3,517
9,273
7,674
8,953
1,279
1,279
31,976
Information Technology Branch
45,277
119,366
98,783
115,250
16,466
16,464
411,606
Public Affairs Branch
4,532
11,948
9,888
11,536
1,648
1,648
41,198
Corporate Audit and Evaluation Branch
1,170
3,084
2,552
2,977
425
425
10,634
Finance and Administration Branch
25,921
68,338
56,555
65,981
9,426
9,426
235,647
Human Resources Branch
13,198
34,794
28,795
33,594
4,799
4,799
119,978
Total Planned Spending
296,711
839,892
662,292
1,195,958
149,545
335,779
3,480,177

1 Includes Children’s Special Allowance payments of $205M.
2 Includes payments to the Province of Québec in respect of the joint administration of the Federal and Provincial Sales taxes of $143M.

Table 6: CRA Major Investment Projects1


 
Forecasted Expenditure up to March 31, 20072
2007-2008
2008-2009
2009-2010
Total Estimated Project Cost
 
Project
(thousands of dollars)
Project Description
Agency Classification System
4,943
4,975
0
0
9,918
Prepare to implement the Agency Classification System through job classification conversion/alignment of online pay changes.
Business Intelligence/Decision Support (BI/DS)
10,992
1,300
1,500
0
13,792
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.
Corporate Administrative System (CAS) Sustainability
428
0
0
0
428
Upgrading the Corporate Administrative System (CAS) requires funding for license upgrade fees, conducting the technical upgrade itself, license maintenance fees and increased system maintenance.
Compensation Services Delivery Renewal
53,177
0
0
0
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.
Compliance Systems Redesign (formerly Business Integration and System Support)
26,714
14,323
20,382
20,301
81,720
To provide integrated system tools for verification and enforcement, to better manage Compliance Programs workload, and improve performance reporting.
Data Centre Facilities – Heron Road/St-Laurent
5,305
1,000
0
0
6,305
This project assures that CRA’s business commitments are met by assuring that both physical data facilities are sufficiently reliable, robust and available, that physical facility space is available for growth and reciprocal recovery space is available in the event of a disaster.
Data Centre Recoverability
44,940
5,300
0
0
50,240
To develop and implement recovery capabilities of essential CRA IT systems in the event of catastrophic loss of either Data Centre Heron (DCH) or Data Centre St. Laurent (DCSL).
Data Stewardship
604
350
350
0
1,304
A business-driven approach to managing data as a corporate asset with the supplementary objectives assuring data quality, confidentiality, accuracy and integrity, and fostering data integration and sharing, ultimately realized through common information systems and data warehouses.
Enhanced Travel Management Solution
547
1,262
0
0
1,809
The purpose of this project is to develop an enhanced travel management solution in CAS using the Employee Self-Serve/ Manager Self-Serve portal to simplify the administrative effort for travellers, administrative staff and managers when processing travel authorization and expense claims.
Enterprise Work Management (EWM)
2,580
15,408
17,573
15,773
51,334
This project proposes to deploy a modern, flexible, seamless and fully integrated work management system initially for Compliance Programs’ needs and, subsequently, intended for use across the Agency.
Fairness Management Information System (FMIS)
282
1,000
0
0
1,282
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.
FIS Development Phase 2
21,502
546
0
0
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.
GST/HST Redesign
150,226
22,200
2,900
0
175,326
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 harmonized provinces.
Management of Government  Information Initiatives, Round 4
10,061
4,000
0
0
14,061
Initiatives include My Business Account, My Account, 3rd Party Privilege and Authentication Exchange Pilot (Portageur).
Individual Identification Renewal
1,819
8,000
5,515
8,126
23,460
CRA Individual Identification (Ident) is a business program, whose purpose is to be a service provider – the Agency’s manager for individual identification information.
Integrated Revenue Collections
46,278
21,387
18,044
0
85,709
The Integrated Revenue Collections (IRC) project will replace the existing stove piped computer systems with a new technological platform to support an integrated taxpayer centred approach. This will enable the Agency to start making strategic use of information, to better identify, prioritize and allocate work based on risk profiles, and to better measure and monitor results across all revenue lines. Phase 1 of the project is focusing on Individual Tax (T1) Integration.
Intranet Renewal
1,441
700
0
0
2,141
CRA 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.
Managed Distributed Environment
3,427
3,213
2,514
0
9,154
A collection of numerous projects involved in implementing changes to the distributed computing environment with a goal to reduce complexities and improve efficiencies.
Network Services
3,022
1,881
0
0
4,903
Provision of network bandwidth and infrastructure to deploy technologies which will enhance network performance and security.
Non-Tax Collections Systems Integration
5,700
6,300
0
0
12,000
Initial phase of a project to provide a business technology solution to enable the collection of insourced non-tax program workloads in an integrated debt management approach consistent with the “one client, one collector, one system” vision of Agency 2010.
Payroll Deductions Accounting and Collection Systems Renewal (PAYDAC)
2,988
0
0
0
2,988
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.
Publishing Content Management Solution
2,074
1,760
1,403
0
5,237
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-purposing for different audiences.
Security Modernization
9,137
4,446
0
0
13,583
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.
Service Availability
38,418
0
0
0
38,418
To improve hours and availability in key areas across all technology platforms and services, their processes and procedures and the physical data centres.
Total Major Investment Projects
446,604
119,351
70,181
44,200
680,336
 

1 The numbers reported in this table are estimated expenditures related to major investment projects and exclude any maintenance and ongoing costs.
2 Forecasted expenditures up to March 31, 2007 include actuals and projections as at Quarter 3 of the 2006-2007 Quarterly Projections Report and prior years’ expenditures published in the Canada Revenue Agency Annual Report.

Table 7: Details on Transfer Payment Programs

Information on the Children’s Special Allowance Payments (CSA) can be found at http://www.tbs-sct.gc.ca/est-pre/20072008/p3a-eng.asp.


Details on Transfer Payment Programs for Canada Revenue Agency
1. Name of Transfer Payment Program: Children’s Special Allowance Payments (CSA) (Statutory)
2. Start Date: Aug. 28, 1995*
3. End Date: Ongoing
4. Description: Tax-free monthly payments made to agencies and foster parents who are licensed by provincial or federal governments to provide for the care and education of children under the age of 18 who physically reside in Canada and who are not in the care of their parents. CSA payments are equivalent to Canada Child Tax Benefit payments. CSA payments are governed by the Children’s Special Allowances Act which provides that this allowance be paid out of the Consolidated Revenue Fund.
5. Strategic Outcome: The Canada Revenue Agency’s second strategic outcome states that “eligible families and individuals receive timely and correct benefit payments”. In this context, the specific objective of the CSA is to ensure that children in care receive their rightful share of entitlements. According to the CSA Act, the CSA payments “shall be applied exclusively toward the care, maintenance, education, training or advancement of the child in respect of whom it is paid.”
6. Expected results: Monthly payments issued on schedule.
Program Activity
7. Forecast
Spending
2006-2007
8. Planned Spending
2007-2008
9. Planned Spending
2008-2009
10. Planned Spending
2009-2010
(thousands of dollars)
11. Benefit Programs
 
 
 
 
12. Total Grants
187,000
205,000
211,000
218,000
Total Contributions
 
 
 
 
Total Other Transfer Payments
 
 
 
 
13. Total Program Activity
187,000
205,000
211,000
218,000
14. Planned Evaluations: N/A
 
 
 
 
15. Planned Audits: N/A
 
 
 
 

* Responsibility for Children’s Special Allowance Statutory Vote Payment was transferred effective August 28, 1995 from Human Resources Development Canada (P.C. Order 1995-342).

Appendix D – Service Standards

External service standards publicly state the level of performance that citizens can reasonably expect to encounter from the CRA 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.

Service standards help facilitate Canadians’ compliance with tax and benefits legislation and support the CRA’s program administration.

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.

Meeting our targets for service standards demonstrates that the organization is responsive to taxpayer and business needs.

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 Customs and 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 2007-2008, we will introduce five new standards, which are listed in Exhibit 1. For the first time, we are introducing two new external service standards related to accuracy of information (Benefit Programs), as well as a standard for responding to taxpayer requested adjustments via the Internet.

Exhibit 1: Introduction of New Standards


Program Activity
Service Standard
Target
For Implementation
Assessment of Returns and Payment Processing
  • Respond to taxpayer-requested adjustments (T1) received via the Internet within two weeks
100%
Reporting Compliance
  • Process requests for Regulation 105 Waivers within 30 days upon receipt of complete documentation
85%
Benefit Programs
  • Process personal information for benefit applications accurately
98%
  • Respond to recipient enquiries with the correct information, and process new recipient information, including issuing a payment, notice or letter accurately
98%
  • Respond to Canada Child Tax Benefit telephone enquiries within two minutes
75%

Deletions and Adjustments

There will be a number of changes to the CRA’s existing slate of service standards in 2007-2008. These will include deletions, cancelling some developmental work and adjustments to other service standards, including one representing a significant service improvement.

On September 25, 2006, the Government of Canada announced the proposed elimination of the Visitor Rebate Program as of April 1, 2007. However, claimants will still have one year to file their rebate applications. For the duration of the program, due to the legislative change to interest accrual from 60 days to 30 days, the service standard will change from four to six weeks, to four weeks. This legislative change takes effect on April 1, 2007.

This year, an adjustment will be made to targets for processing T1 paper and electronic individual income tax returns. As other Agency service standards are expressed in percentage terms, for purposes of consistency, targets will now be expressed in percentage terms.

Last year, after reviewing the need to develop a service standard for T1 publications, we determined that no further work should be done on this activity. Given the strategic direction to reduce the mail-out of publications, millions of tax filers currently do not receive any written tax information from the CRA. This number will only increase in the future, as more tax filers make use of our electronic service offerings. Nonetheless, the CRA will continue to manage the publication workloads in accordance with internal target dates for issuing publications.

As a result of ongoing re-engineering of the compliance processes for registered pension plans (RPPs), the CRA is continuing to look at changes to existing service standards, as well as improvements to its monitoring capacity. The RPP service standards will be restated to better reflect the way our programs will be delivered. For example, the formal deeming process has been integrated into the registration process. This is an amendment from its previous two-step approach (deeming of a RPP and a complete review). Results of re-engineering have significantly decreased the time it takes to register low risk plans, so the deeming process is no longer applied to low risk plans. As a consequence, results of the deemed registration standard are no longer being captured. The service standard for deemed registrations will be incorporated in a new registration service standard. In addition, following further work on a proposed new telephone standard (responding within six rings), and as a result of consultations with plan administrators, it was decided both to discontinue our current standard and to work on a new standard, because the area lacks an accurate telephone monitoring infrastructure to substantiate results. However, the CRA’s pledge to respond to telephone calls in a timely manner will continue to be communicated through the Registered Plans Directorate Newsletter.

Approval is being sought to amend the current charities telephone service standard to, responding to calls within two minutes 80% of time. This change would bring the charities telephone standard in line with the service standards for general and business enquiries. The number of charities callers has increased by over 30% in the past four years. The CRA plans to devote more resources to strengthening other communication channels for charities, including providing seminars, improving the charities Web site and responding to written enquiries.

Finally, we are seeking approval to combine and revise the standard and target for T2 corporate income tax. Based on the fact that we have exceeded our existing targets in the past three fiscal years and continue to do so, and considering the implementation of bar-coded returns, as well as an expected increase in electronic filing, we are confident that this change is warranted and needed.

Benefit Programs has committed to having more user-friendly wording for the service standards that apply to processing CCTB applications and account maintenance/responding to written enquiries2 .

Exhibit 2: Changes Proposed for 2007-2008


Program Activity
Service Standard
Target
Deletions and Adjustments
Taxpayer and Business Assistance (Enquiries and Information Services)
  • T1 publications—developmental work has been discontinued
 
Taxpayer and Business Assistance (Legislative Policy and Regulatory Affairs)
  • Registered plans telephone service standard—existing telephone service standard (answer requests within two days), as well as developmental work on a proposed new standard (respond within six rings), will be discontinued
 
  • Formal deeming of registered pension plans has been integrated into the registration process. Results monitoring of deemed registrations has been discontinued. The service standard for a complete review of an application to register a pension plan remains 180 calendar days.
  • Respond to charities telephone enquiries within two minutes
80%
Assessment of Returns and Payment Processing
  • Processing visitor (GST/HST) rebate applications within four weeks
95%
  • Processing T1 individual income tax returns (paper in four to six weeks and electronic in two weeks)
100%
  • Processing T2 corporate income tax returns within 60 days
90%
  • Providing Statements of Interim Payments (SIP) to GST/HST taxpayers on a monthly basis
95%
Benefit Programs
  • Revised user-friendly wording will replace “at the end of the second month after month in which application/enquiry is received” (processing CCTB applications, and account maintenance/responding to written enquiries)
 

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 2007-2008 to 2009-2010


Program Activity
Service Standard
Under Development
Taxpayer and Business Assistance (Legislative Policy and Regulatory Affairs)
Review and respond to applications for charitable registration upon receipt of a complete application, within established standards
  • Target—80%
Respond to telephone enquiries related to GST/HST rulings and interpretations
  • Testing will commence sometime in 2007-2008 to determine the feasibility of responding to calls in queue within two minutes 80% of the time
Deferred income plans—response to written enquiries within 60 days
  • Target—85%
Registration of a pension plan within 90 days. This standard would combine the previous standards for deemed registration and complete review of pension plans.
  • Target—85%
Registered pension plan amendments within 60 days. This standard would combine amendments within nine months and terminations within one year.
  • Target—85%
Request for eligible contributions within 270 days. This standard would rename actuarial validation reports and raise the target.

Note: Developmental work on a discrete standard for the Part XIII withholding telephone enquiries is currently on hold; this workload is being transferred to another area of the Agency.

We have also reviewed the need for a service standard for general and business enquiries by correspondence, and have determined that it is no longer necessary. Volumes have been steadily declining over the past three fiscal years. Enquiries by correspondence now represent only 3% of our enquiries. We expect the decline to continue due to our channel convergence strategy and increased provision and take-up of online products and services such as My Account.

Reporting

We report externally on our overall performance against our service standards in the CRA’s Annual Report, found at www.cra.gc.ca/agency/annual/menu-e.html.

Exhibit 4: Service Standards in Effect for 2007-2008


Service
Service Standard
Target
Taxpayer and Business Assistance (PA1) (Enquiries and Information Services)
1. Problem resolution program
Acknowledged within two working days
100%
2. Problem resolution program
Resolution/taxpayer contact within 15 working days
100%
3. General enquiries—Telephone service level
Respond to calls in queue within two minutes
80%
4. Business enquiries—Telephone service level
Respond to calls in queue within two minutes
80%
Taxpayer and Business Assistance (PA1) (Legislative Policy and Regulatory Affairs)
5. Charities—Response to telephone enquiries
Within 2 minutes
80%
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 equiries
Within 45 working days
75%
9. Applications to register pension plans
Complete review in 180 days
85%
10. Amendments to registered pension plans
Nine months
80%
11. Termination of registered pension plans
One year
85%
12. Retirement savings plans (applications to register, amend or terminate)
Within 60 days
80%
13. Retirement income funds (applications to register, amend or terminate)
Within 60 days
80%
14. Education savings plans (applications to register, amend or terminate)
60 days
85%
15. Actuarial valuation reports
Nine months
80%
16. Deferred income plans—Response to written enquiries
Within 60 days
80%
17. Deferred profit sharing plans
Registration in 180 days
80%
18. Deferred profit sharing plans
Amendments and terminations in 270 days (nine months)
80%
Assessment of Returns and Payment Processing (PA2)
19. Processing visitor (GST/HST) rebate applications
Four weeks
95%
20. Responding to taxpayer-requested adjustments (T1)
Eight weeks
100%
21. Responding to taxpayer-requested adjustments (T1) received via the Internet
Two weeks
100%
22. Providing Statements of Interim Payments (SIP) to corporations and other levies clients on a monthly basis
Mailed by the 18th of the month
95%
23. Processing T1 individual income tax returns (paper)
Four to six weeks
100%
24. Processing T1 individual income tax returns (EFILE, TELEFILE, NETFILE)
Two weeks
100%
25. Processing T3 trust returns
Within four months
95%
26. Processing excise tax, excise duty and air travellers security charge returns
Within 90 days
95%
27. Processing GST/HST returns
21 days
95%
28. Processing T2 corporation income tax returns
Within 60 days
90%
Accounts Receivable and Returns Compliance (PA3)
29. Processing fairness requests related to accounts receivable and trust accounts programs
Four to six weeks
90%
Reporting Compliance (PA4)
30. Processing non-resident Regulation 105 waiver requests
30 days
85%
Claims—SR&ED tax incentives
 
 
31. Refundable claims
120 days
90%
32. Non-refundable claims
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. Canada Child Tax Benefit—Telephone enquiries
Respond to calls in queue within two minutes
75%
39. Processing benefit applications and elections1 —Timeliness
End of second month after month in which application is received
98%
40. Processing benefit applications and elections—Accuracy
Accurately process information and, if necessary, issue a payment, notice or letter
98%
41. Responding to benefit and credit enquiries2 —Timeliness
End of second month after month in which enquiry is received
98%
42. Responding to benefit and credit enquiries—Accuracy
Respond to recipient written enquiries and telephone referrals from the Call Centres with the correct information, and process new recipient information, including issuing a payment, notice or letter, accurately
98%
43. Validation and control—Results of review
60 days
90%
44. Processing a request to authorize or cancel a representative3 
Within 20 days during peak periods
90%
45. Processing a request to authorize or cancel a representative
Within five days of receipt during non-peak periods
90%
Corporate Services (PA7)
46. 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
 

1 Name changed from CCTB applications to more accurately reflect the service provided. This service standard is applied to Marital Status Change and Canada Child Tax Benefit Applications.
2 Formerly called Account Maintenance. The name has been changed to one more meaningful to the public.
3 Formerly called Processing of T1013. The name was changed to reflect that the standard applies to any such request.

Appendix E – Sustainable Development Strategy

The aim of the Sustainable Development Strategy 2007-2010 is to demonstrate how the CRA is a socially responsible organization that operates in an efficient and environmentally responsible way. The strategy sets a course of action toward reducing the impacts of our operations and service delivery on the environment; leveraging sustainable development to enhance business objectives and efficiencies; and demonstrating how the CRA contributes to the economic and social well-being of all Canadians.

The Sustainable Development Logic Model provides a concise view of the Agency’s Sustainable Development vision, its four outcomes and goals, as well as its objectives and targets. The Logic Model can be viewed at http://www.cra-arc.gc.ca/E/pub/xi/rc4369/rc4369-03-07e.html.

To put the strategy into action, we will implement annual activities in the national Sustainable Development Action Plan, which is supported by branch and regional action plans and the Environmental Management Programs.3  We will also use a detailed performance measurement and reporting strategy to ensure that the Agency meets its legislative and regulatory obligations and achieves its sustainable development commitments. For more information on sustainable development, please visit www.cra-arc.gc.ca/sds.

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.

Allowance for Doubtful Accounts

A contra account representing the Agency’s estimate of all amounts that are non-recoverable from taxpayers at a predetermined point in time.

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.

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 taxpayers 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 taxpayer experience and reduces the time needed for agents to review program needs with taxpayers.

Clients/client governments

Federal, provincial and territorial governments, First Nations governments, and other governmental and semi-governmental bodies 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/entitled

Meets the requirements of the legislation to receive a benefit.

Enforcement

Actions taken by the CRA to identify, address and correct cases of non-compliance.

Entitlement

The amount due to an entitled person for a specific period.

Expected results

Clear and measurable statements of what the CRA expects to achieve over the planning period, against which our performance will be assessed and reported.

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.

Fiscal impact

Additional tax identified through our compliance activities and includes federal and provincial tax (excluding Quebec), federal tax refund offset or reduced, interest and penalties, and present value of future tax assessable.

Five-Year Parliamentary Review

According to section 89 of the Canada Customs and Revenue Act (CCRA Act), “Five years after the coming into force of this section [Revenue Canada assuming agency status], a comprehensive review and assessment of the provisions and operations of this Act must be undertaken by any committee of the House of Commons, of the Senate or of both Houses of Parliament that is designated or established for that purpose.”

Full-time equivalent (FTE)

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.

Indicator

The qualification or quantification of a characteristic that is measured to assess the extent to which an expected result is achieved. In other words, it is a means of knowing whether or not we have achieved a desired result.

Infrastructure

Publicly or privately owned fixed capital assets for public use or benefit.

Investment Projects (major)

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 based on 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.

Output

The actual activities, products, or services produced by carrying out a program or an initiative.

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 expected results.

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 level (telephone calls)

A measure of the percentage of telephone calls answered within two minutes of when a caller enters the queue.

Service satisfaction

The percentage of taxpayers and benefit recipients expressing their satisfaction as measured through public surveys.

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

A description of the difference an organization is mandated to make within its sphere of influence, that provides long-term 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.

Waiver

When penalties or interest have not yet been charged and a decision is made not to charge the amount, either at the taxpayer’s request or at the CRA’s own initiative.


1 This table now reflects the approach taken in the Audited Financial Statements of the Agency 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 now excluded.

2 The names of these standards have changed (see footnotes for service standards 39 and 41, on Page of Appendix D).

3 The national Sustainable Development Action Plan and the Environmental Management Programs are updated annually.