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2010-11
Report on Plans and Priorities
Canada Revenue Agency
The original version was signed by
The Honourable Keith Ashfield, P.C., M.P.
Minister of National Revenue, Minister of the Atlantic Canada Opportunities Agency and Minister for the Atlantic Gateway
Table of Contents
Section II: Analysis of Program Activities by Strategic Outcome
Section III: Supplementary Information
Section I: Agency Overview
Message from the Minister
I am honoured to have been recently appointed Minister of National Revenue. I look forward to leading an organization that
has earned the confidence of Canadians through fairness, accountability, and integrity.
Our government is committed to securing the future prosperity of our nation. Implicit in this commitment is the agreement that governments throughout Canada, individual Canadians, and Canadian businesses contribute to our economy by conscientiously fulfilling their fiscal obligations. During the recent period of economic uncertainty, our government's Economic Action Plan (EAP) has helped our country reach our current stage of economic stabilization.
The Canada Revenue Agency (CRA) is playing a key role to the successful implementation of many EAP initiatives like personal income tax relief, an increased Working Income Tax Benefit and the new Home Renovation Tax Credit, as well as other measures targeted to help families, seniors, workers, and persons with disabilities. Through corporate income tax reductions, we are providing support to businesses of all sizes to maintain and create jobs that will strengthen the Canadian economy. To carry out this work, we rely on a world-class tax and benefit delivery system.
While the CRA has been successful in protecting Canada's revenue base, it is clear that there will be future challenges to our ability to do so. Recognizing both our strengths and limitations, our Report on Plans and Priorities 2010-2011 outlines an ambitious agenda that explores existing and anticipated risks and opportunities in greater depth while working for immediate results for Canadians.
As Minister of National Revenue, I am proud to have been given the opportunity to witness the professional and dedicated employees of the Canada Revenue Agency. I look forward to working with this organization in its ongoing pursuit of excellence.
The Honourable Keith Ashfield, P.C., M.P.
Minister of National Revenue,
Minister of the Atlantic Canada Opportunities Agency and
Minister for the Atlantic Gateway
Message from the Commissioner
As the new Commissioner of the Canada Revenue Agency (CRA), I take pride
in becoming a part of such an outstanding public service organization as it embarks on its second decade. I firmly believe
the success of an organization lies in the strength of its employees, and am very aware that
CRA employees have the reputation of serving Canadians with unparalleled
dedication. The progress that has been made over the last ten years has strengthened the
CRA's position as a leader in Canada's public service and a tax administration
that is among the best in the world.
Our 2010-2011 Report on Plans and Priorities builds on our commitment to service excellence anchored by expanded electronic capability. Maintaining our reputation for a high level of performance, however, will be a challenge. Service expectations continue to grow while increasingly sophisticated and elaborate tax avoidance and evasion activities are creating significant compliance pressures. The advancement of our change agenda will necessitate careful stewardship and ongoing investment to maintain our core capacity in service and compliance. We are committed to maintaining service leadership; identifying and addressing key areas of compliance risk; and enhancing the overall fairness and integrity of Canada's tax and benefits system for the immediate benefit of Canadians. In pursuing the priorities set out in this plan, we aim to ensure that individuals and businesses pay the correct amount of tax due and that we deliver, in a timely manner, the exact amount of benefit payments to those Canadians most in need.
I have confidence in our capacity to learn and adapt, and look forward to working with my new colleagues in realizing our goals, making a difference in our country, and making our government proud.
Linda Lizotte-MacPherson
Commissioner and Chief Executive Officer
Canada Revenue Agency
Our Raison d'être and Responsibilities
The Canada Revenue Agency (CRA) is the principal revenue collector in the country and is responsible for distributing benefit payments to millions of Canadians each year.
- provide better service to Canadians;
- offer more efficient and more effective delivery of government programs; and
- foster closer relationships with provinces and other levels of government for which the CRA delivers programs, and providing better accountability.
The CRA contributes to two of the Government of Canada's strategic outcomes:
- Federal organizations that support all departments and agencies; and
- Income security and employment for Canadians.
Our Mandate
The Canada Revenue Agency (CRA) is mandated to administer tax, benefit, and other programs on behalf of the Government of Canada and provincial, territorial, and certain First Nations governments. The CRA exercises its mandate within a framework of complex laws enacted by Parliament, as well as by provincial and territorial legislatures. Our mandate reflects the broad role that we assume in the lives of Canadians.
No other public organization touches the lives of more Canadians on a daily basis than the CRA. Each year, we collect billions of dollars in tax revenue and deliver income-based benefits, credits, and other services that help families and children, low- and moderate-income households, and persons with disabilities. These programs contribute directly to the economic and social well-being of Canadians.
The following two strategic outcomes summarize our contribution to Canadian society.
- Taxpayers meet their obligations and Canada's revenue base is protected; and
- Eligible families and individuals receive timely and correct benefit payments.
In addition to the administration of income tax and benefit programs, the CRA now administers the harmonized sales tax (HST) for three Atlantic provinces. Ontario and British Columbia have also recently entered into agreements with the federal government to implement the harmonized sales tax (HST), which would replace existing provincial sales taxes and the federal goods and services tax in those provinces, beginning on July 1, 2010.
The CRA also verifies taxpayer income levels in support of a wide variety of federal, provincial, and territorial programs, ranging from student loans to health care initiatives. In addition, we provide other services, such as the Refund Set-Off Program, through which we aid other federal agencies and departments, as well as provincial and territorial governments, in the collection of debts that might otherwise become uncollectible.
CRA Program Activity Architecture
Planning Summary
Agency Resources
Alignment to Government of Canada Outcomes
Contribution of Priorities to Strategic Outcomes
The CRA is responsible for administering, assessing, and collecting billions of dollars in taxes annually. We deliver tax services and benefit programs that support the economic and social well-being of Canadians, including families and children, low- and moderate-income households, and persons with disabilities.
The CRA's mandate sets out two strategic outcomes that summarize its contribution to Canadian society. The achievement of these outcomes demonstrates that we are fulfilling our mandate from Parliament.
Taxpayers meet their obligations and Canada's revenue base is protected.
Eligible families and individuals receive timely and correct benefit payments.
We are continually evolving our strategic direction and refining our vision to meet challenges within our changing environment. We have increased our emphasis on mitigating risk factors which may impact our capacity to deliver services to Canadians.
We have introduced five overarching strategic elements to guide our work over the planning period. Our tax and benefit operational and management focus will be on building trust to promote compliance, strengthening service to make compliance easier, making non-compliance more difficult, making it easier to receive the right social benefits, and maintaining business sustainability.
The following table links our priorities to the achievement of our strategic outcomes.
Contribution of Priorities to Strategic Outcomes
Measuring our Strategic Outcomes
Our Operating Environment
Our annual strategic planning process aligns our strategic initiatives with our priorities and risks posed by the operating environment. We begin this process with a review of environmental factors, including business and operating risks, affecting the CRA.
Government Environment
The CRA was instrumental in the recent roll-out of the Government of Canada's Economic Action Plan. Governments at all levels are increasingly using the tax system to deliver very specific social and economic policy objectives. Examples abound, both at the federal, provincial, and territorial levels where interprovincial tax competition is quite fierce. The increasing complexity of the tax system presents a number of challenges for both taxpayers and the CRA.
Public Service renewal remains the top management priority for the Clerk of the Privy Council, with the focus shifting to include seasoned public servants as well as new recruits. The Clerk has also asked deputy heads to embrace more technology in the workplace and to allow employees to take informed risks with the guidance of sound risk management frameworks.
Economy
Canada weathered the recent economic downturn more successfully than other industrialized countries. After a contraction of over 3% in real GDP between the second quarter of 2008 and the third quarter of 2009, there have been some signs of stabilization in the fragile Canadian economy. Forecasts for GDP recovery in Canada during 2010 vary; the Conference Board of Canada suggests an increase of less than 1%, while the TD Financial Group forecasts a 2.7% rise.
Overall, federal tax revenues were down by over 13% during the first seven months of 2009-2010. The Minister of Finance is forecasting a $55.9 billion budget deficit in 2009-2010. Federal budget deficits are projected until at least 2014-2015.
Demographic Trends
Experts believe that while the current recession will result in a short-term surplus of workers, the expected economic upturn as we move into the new decade will again evoke a crises of skilled labour shortages as a decline in the size of the Canadian workforce is forecast to begin in the next ten years.
New Canadians currently account for 70% of recent labour force growth and the participation rates of Aboriginal peoples and women have also been steadily increasing, adding to the diversity of the labour market. It is critical that we deliver information services that new citizens can understand and use, and that help build trust in the CRA.
Like most other large public and private sector organizations, the CRA will be faced with ongoing challenges in our ability to attract, develop, and retain talent. As we look to replace retired workers, we will compete with other organizations for skilled and educated individuals in a shrunken labour pool. These challenges will become more pronounced as we progress through this demographic shift in the coming years.
Technological Change
Sixty-one per cent of Canadians have reported being online for five years or more. This level of use plus emerging social networking technologies leads to increasing client expectations for fast and secure electronic services. The next frontier for the CRA will be wireless technology. In fact, the United States Internal Revenue Service has recently announced that they will offer a tax filing option this year that uses wireless technology. Canadians will expect no less. We will need to assure ourselves that they can do so in an absolutely secure manner to protect their tax information.
When IT service delivery models begin to shift with the emergence of cloud computing, we must determine an appropriate response. Although there are cost advantages to the cloud environment (that is, clients do not own the physical infrastructure and only pay for the resources that they use), the speed and scale of adoption of this model will be tempered by security and privacy considerations.
Corporate Risks
Our Corporate Risk Inventory (CRI) 2009 identifies 14 risks that could negatively affect our ability to meet our business objectives. The CRI is the result of the CRA's second formal effort to understand and assess its key corporate risks. The business and operational risks identified in the CRI and described below are used by senior management to inform our strategic planning process. Many of the risks identified in the CRI are referenced throughout this plan.
Business Risks
The Underground Economy
Aggressive Tax Planning
Willful Non-Compliance
Payment Non-compliance
Operational Risks
Compliance with Various Legislation, Regulations, and Policies
Resource Optimization
Organizational Responsiveness and Resilience
Clients, Stakeholders, Taxpayers, and Benefit Recipients' Expectations
Human Resources Capacity and Capability
Knowledge Management
Employee Ethical Conduct
Protection of Information
Information Technology Responsiveness
Information Technology Sustainability
Expenditure Profile
In the table below, for the period 2006 - 2007 to 2009 - 2010, total spending amount includes all Parliamentary appropriations and revenue sources: Main Estimates, Supplementary Estimates, funding associated with the increased personnel costs of collective agreements, maternity allowances and severance payments, as well as funding to ensure early implementation of Budget 2009 initiatives and the Agency's carry forward adjustments from the prior year. It also includes spending of revenues received through the conduct of CRA's operations pursuant to Section 60 of the Canada Revenue Agency Act, Children's Special Allowance payments, payments to private collection agencies pursuant to Section 17.1 of the Financial Administration Act and payments to the provinces under the Softwood Lumber Products Export Charge Act, 2006. For the period 2010 - 2011 to 2012 - 2013, planned spending excludes carry forward adjustments which are only finalized once Public Accounts are completed and it also does not include any amounts for maternity allowances and severance payments. Finally, for the period 2011 - 2012 to 2012 - 2013 planned spending amounts do not yet include a forecast for payments to the provinces under the Softwood Lumber Products Export Charge Act, 2006 (estimated at $479M in 2010 - 2011).
Since 2006 - 2007, the Canada Revenue Agency's Operating Expenditures reference levels have increased primarily as a result of: collective agreements / contract awards; policy and operational initiatives arising from various Federal Budgets and Economic Statements; the transfer from the Department of Public Works and Government Services Canada for accommodations and real property services; and the assumption of the responsibilities related to the Corporate Tax Administration for Ontario, and the Softwood Lumber Agreement.
The increases to the Operating Expenditures have been offset by a number of reduction exercises, including the 2008 Federal Budget strategic review reductions and the procurement reform cost efficiency savings announced in the 2007 Federal Budget as well as the introduction of the Capital Expenditures Vote in 2010 - 2011.
The Agency Statutory Authorities have fluctuated over the course of the 2006 - 2007 to 2012 - 2013 period as a result of: adjustments to the Children's Special Allowance payments for eligible children in the care of specialized institutions; adjustments to the rates for the contributions to employee benefit plans; increases to the spending of revenues received through the conduct of operations pursuant to Section 60 of the Canada Revenue Agency Act; the introduction from 2007 - 2008 to 2009 - 2010 of payments to private collection agencies pursuant to Section 17.1 of the Financial Administration Act; and finally, the introduction in 2006 of payments to the provinces under the Softwood Lumber Products Export Charge Act, 2006.
Voted and Statutory Items
The Canada Revenue Agency's (CRA) increase in net spending of $88.5M or 2% is due to an increase in operating costs of $39.9M, an increase in contributions and other transfer payments of $54.0M, offset by an additional $5.4M in expected revenue due to an increase in Canada Pension Plan (CPP) and Employment Insurance (EI) recoveries. In addition, the establishment of a new capital authority results in the transfer of $136.1M from operating costs to the new Capital Vote.
- $50.0M related to the payments to provinces under the Softwood Lumber Products Export Charge Act, 2006;
- $24.7M related to Collective Agreements;
- $22.7M related primarily to the transfer from Public Works and Government Services Canada for the increased charges for accommodation and real property services;
- $22.1M in initiatives administered on behalf of Service Canada and the Province of Ontario on a cost recovery basis;
- $9.6M related to 2009 Federal Budget measures such as: Home Renovation Tax Credit, First-Time Home Buyers Tax Credit and Late Filing and Incorrect Format Penalties;
- $4.0M in payments under the Children's Special Allowance Act (CSA) for eligible children in the care of specialized institutions.
- $12.7M related to the Corporate Tax Administration for Ontario;
- $10.2M related to various initiatives announced in the 2007 and 2008 Federal Budgets;
- $9.4M related to the 2008 Federal Budget strategic review reductions;
- $6.2M related to the procurement reform cost efficiency savings announced in the 2007 Federal Budget;
- $6.0M for government advertising programs;
- $0.1M related to other technical adjustments.
Section II:Analysis of Program Activities by Strategic Outcome
Benefit to Canadians
Our aim is to ensure that taxpayers, businesses, and registrants are provided with the tools, assistance, and information needed to voluntarily comply with their tax obligations. In addition, we clarify the interpretation of the tax laws to protect Canada's revenue base.
Planned Spending by Program Activity
Program Activity — Expected Results and Measures
Our Priorities
Building trust to promote compliance
Through outreach, we deliver the information and assistance that taxpayers need to meet their obligations and obtain the benefits to which they may be entitled. To make sure that our outreach events reach the most appropriate audience, we target specific groups such as seniors, new Canadians, persons with disabilities, small business, new business, charities, and high-risk sectors, and provide specific information that meets their needs.
We identify segments and topics on which to focus our outreach activities through various means, such as public opinion research, demographic analysis, business trends, environmental scans, and compliance risk analyses. We do this to ensure that we respond effectively to changing demographics and economic trends and to address areas of non-compliance or compliance risk.
We will strengthen outreach by developing an integrated CRA outreach strategy which will set the framework for all CRA outreach activities. Through the implementation of this strategy, we will ensure a co-ordinated approach to outreach, with consistent messaging tailored to meet specific needs. We will also partner with other government agencies and departments, provinces, and associations to expand the reach of our activities, using advanced technology like webinars to maximize effectiveness.
Specific initiatives include the development of a taxpayer segmentation model to target specific groups with particular messages. We will also explore ways to improve voluntary compliance through an enhanced understanding of responsible citizenship. We will consider alternative delivery models and maximize the use of appropriate partners.
The provision of timely and accessible information regarding obligations and entitlements is fundamental to a self-assessment tax system. Canadians are using various means (Internet, telephone, in person, in writing) to satisfy their information needs. We want to encourage taxpayers to migrate to the more affordable self-serve channels, with agent assistance readily available when required.
We manage the convergence of channels to ensure the consistency of messaging, and that taxpayers trying to self-serve have timely access to agent assistance through applications such as Smartlinks.
Our 1-800 telephone networks provide help and information to taxpayers through automated and agent-assisted services. These networks are managed in real time to balance call volumes across the country and to provide maximum accessibility. Callers using the automated service can obtain general information 24 hours a day, seven days a week. The CRA Web site is continually updated to provide current, relevant information. Both the content and structure of our Web site are fine-tuned based on the results of usability testing to ensure client needs are being met.
Over the planning period, we will expand our research and analysis to better understand clients' information needs and expectations. We will also explore best practices and emerging technology in the taxpayer services arena. This will help enhance the design and development of our products and services. It will also be complemented by an enhanced quality assurance regime.
We will develop training and job aids for agents to improve their efficiency
Our enquiries and information services will develop training and job aids for agents to help them respond efficiently to increasingly complex enquiries. Our development of multimedia training products and new applications that link agents' desktops to appropriate reference material will reduce the time agents need to research certain topics. It will also enable them to answer telephone enquiries more effectively and efficiently in an environment of continually changing legislation.
The telephone channel remains the most popular way for taxpayers to contact us. We will meet our increased performance targets for caller accessibility and our service standards for timeliness. In addition, data gathered under the quality assurance program will serve to support and strengthen the quality and accuracy of our responses to enquiries, as well as to permit the identification of agent training needs, procedural and accuracy trends, and product and service gaps.
The program initiatives we will pursue over the planning period are listed in the following table.
Priority Initiatives
Our Priorities
Strengthening service to make compliance easier
To enhance the Charities Program, we will ensure that registered charities and applicants for registered status, have access to high-quality application and enquiries processes. We will implement new service standards, follow through on recommendations of the Small and Rural Charities Initiative, and use electronic service options such as webcasts and webinars.
We will continue to improve the administration of the Canada Pension Plan/Employment Insurance (CPP/EI) Rulings Program through management and technological innovations and the building of partnerships.
An increasing number of requests for CPP/EI rulings coming from within the Agency are being converted to electronic format. It is being facilitated by the Referral Allocation and Distribution System (RADS), a locally developed solution that allows rulings to be requested electronically and distributed nationally. RADS is modernizing the program by providing regional rulings staff and other internal stakeholders a more efficient, secure method to refer, respond to, and move ruling requests across the regions. The CPP/EI Rulings Division will continue to develop and improve policies, procedures and outreach information, to ensure that regional staff have the required tools to better serve Canadians and achieve program objectives.
We will implement a risk-based approach to registered plans to streamline the registration process, and increase audit coverage through random and targeted audits. We will also upgrade our toll-free enquiries line for registered plans, enhance information available on our Web site, and improve outreach activities and electronic service offerings.
We will work to improve our performance in issuing advance income tax rulings within an average of 60 days.
We will expand our collaboration with provincial and territorial governments
To improve the overall regulatory environment, we also intend to expand our collaboration with provincial and territorial governments. We will focus our efforts on inter-provincial tax avoidance to address the techniques used by corporations to shift income between provinces and territories.
Making Non-Compliance More Difficult
We deal with the challenges of non-compliance by continuing to enhance the effectiveness of our excise programs. In co-operation with other federal government organizations, we will maintain and enhance compliance with Canada's tobacco laws and support our partners as they address the issue of contraband tobacco.
During the planning period, we will maintain our efforts to implement an enhanced tobacco stamping regime. To this effect, we will continue to consult with the tobacco industry (manufacturers and importers), provincial and territorial governments, and other federal departments and agencies. We will work closely with the Department of Finance Canada officials to complete the necessary legislative amendments for the new regime, including the drafting of supporting regulatory amendments and guidelines. Should these steps proceed according to our expectations, the CRA will establish and implement the new stamping regime to ensure, within reasonable timelines, that 100% of all tobacco products manufactured and imported into Canada bear the new stamp. At the same time, we will encourage provinces and territories to adopt the new stamping regime.
Registered charities in Canada are tax-exempt and can issue charitable donation receipts to donors. To maintain these privileges, registered charities must satisfy an annual disbursement quota requirement, file a registered charity information return and financial statements, and operate within the parameters of the Income Tax Act. The focus of our Charities Program will be to help protect the charitable sector and to address identified non-compliance in a timely manner.
We will also administer the Charities Registration (Security Information) Act, which supports Canada's national security agenda and international obligations to counter terrorism.
We will implement program enhancements to the Tax Free Savings Account (TFSA) program by developing new, technologically enhanced risk assessment methods of detecting high risk files. Furthermore, we will put an audit program in place to identify abusive arrangements using TFSAs. We will also enhance information relating to TFSAs available on our Web site and improve outreach activities to our clients.
The program initiatives we will pursue over the planning period are listed in the following table.
Priority Initiatives
Benefit to Canadians
Our aim is to deliver efficient and correct assessing of individual, business, trust, and information returns and timely payment processing, thereby promoting voluntary compliance and contributing to the protection of Canada's revenue base.
Planned Spending by Program Activity
Program Activity — Expected Results and Measures
Our Priorities
Strengthening service to make compliance easier
We will continue to promote integrated and accessible channels, while encouraging and enabling more individuals and businesses to conduct their tax affairs electronically. We have already made significant investments in upgrades to ensure that many of our systems are state-of-the-art, and we will allocate additional resources to support further modernization of our remaining core systems. We will enhance our electronic services and strengthen our secure online channel.
We will enhance our electronic services to make them more user-friendly
Changes will be made to My Account, that will help make the service more user friendly for a broader range of Canadians. The redesign will also lay the groundwork to accommodate future growth of the My Account service. My Business Account will be further enhanced in consultation with users and other external stakeholders.
We will begin to display TFSA information on notices of assessment
Beginning in 2009, tax-free savings accounts (TFSAs) allowed Canadians to set money aside in qualifying investment vehicles and watch the savings grow tax-free. In 2010, we will provide TFSA contribution room on the notice of assessment for eligible individuals who file an income tax return and enhance My Account to access TFSA information online.
We will optimize program efficiency and accurate assessment of tax through enhancement and integration of common data systems and remove specific barriers and exclusions for electronic filing.
We will augment our processing systems, capture information returns and slips previously not supported, accept a higher number of information slips electronically, and provide upfront validation of data submitted. This will enable us to improve services for taxpayers, facilitate compliance, and reduce the need for post-filing contact.
We will work with stakeholders to increase the use of e-services and the use of the Business Number as a common identifier for business and government at all levels. The 2009 implementation of harmonized corporate tax returns for Ontario corporations will deliver enormous service benefits for businesses and further promote the take-up of electronic filing.
Making Non-Compliance More Difficult
We will enhance our ability to address non-compliance by continuing to improve our post-assessment review programs. We will do this through effective use of third-party information and refining risk assessment capabilities. We will focus on discrepancies, correcting errors, validating claims, and helping individuals and businesses comply in areas of new legislation. We will implement all required federal, provincial, and territorial legislative changes, giving effect to the tax agendas of governments across Canada and promoting efficiency in delivery
The program initiatives we will pursue over the planning period are listed in the following table.
Priority Initiatives
Benefit to Canadians
Our aim is to promote and enforce compliance with Canada's tax laws for filing, withholding, registering, remitting and debt obligations, including those amounts collected or withheld in trust on behalf of the Government of Canada, as well as the provinces, the territories, and certain First Nations governments.
Planned Spending by Program Activity
Program Activity — Expected Results and Measures
Our Priorities
Making Non-Compliance More Difficult
The majority of Canadians comply with tax laws and their obligations. However, we continue to see growth in tax debt as a result of those taxpayers and businesses who fail to meet their tax obligations. With this in mind, we will continue to enhance our strategies to resolve debt while also developing strategies to deter future arrears.
In the past, our primary focus has been on managing the level of tax debt. As seen in other tax administrations around the world, increasing debt inventories are a reality of our operating environment and are influenced by several variables that are outside of our control, such as economic conditions and growth in the number of strategic bankruptcies. For this reason, we have adopted a more strategic approach to enhance how we manage payment non-compliance. Our anticipated result is that an increased number of taxpayers will pay when required, which in turn will contribute to the protection of Canada's revenue base.
Our strategies to manage our accounts receivable portfolio will focus on two distinct goals — to ensure that debt is paid at the time of assessment and to effectively manage the debt after it occurs. Our key activities will align with each goal to ensure that we are proactively addressing each one. We will also ensure that effective horizontal partnerships are formed within the Agency to address issues such as debts arising from Agency compliance activities.
We will develop and implement our payment non-compliance action plan
Over the planning period, we will develop and implement our payment non-compliance action plan in response to the risk identified in the CRA Corporate Risk Inventory. The plan focuses both on opportunities to prevent debts from occurring and proactively assisting taxpayers in meeting their obligations in a timely manner.
While substantial progress has been made to enhance our collection enforcement capabilities, further work is needed. For the purposes of the payment non-compliance initiative, however, we are turning our attention to the earlier stages of the collection continuum in order to have positive impacts on our receivables. Accordingly, our goals will entail looking at opportunities to deter payment non-compliance by preventing debts from arising and by encouraging and proactively assisting taxpayers to meet their obligations in a timely and equitable fashion. Efforts to realize some of these goals will also result in substantial benefits in other areas of the collections continuum.
Another key activity that we will undertake is the implementation of our National workload allocation project for our non face-to-face workload. This will facilitate effective inventory management and prioritization to optimize debt management resources and maximize tax debt collections.
We will also continue to develop tailored strategies to address specific segments of the existing inventory. For example, an industry-based study has identified areas that present a higher degree of risk and we are now developing an industry-based collection plan. Additionally, we will implement Phase II of our insolvency strategy to identify high-risk strategic bankruptcies and help eliminate bad debt as soon as possible.
The CRA is also a service provider for other government departments for the recovery of outstanding receivables. For example, the CRA collects Employment Insurance overpayments and defaulted Canada Student Loans on behalf of Human Resources and Skills Development Canada. We will manage other government debt effectively meeting commitments to clients and being responsive to new and existing program requirements.
We will improve the detection of non-compliance activities for employers and GST/HST registrants
We will improve the detection of remittance, filing, and withholding non-compliance for employers and GST/HST registrants. The CRA will also continue to partner with stakeholders to reduce the withholding, remitting, and reporting burden for small businesses.
The creation and implementation of the Trust Compliance National Inventory will allow more efficient and effective resolution of employer non-compliance. This strategy will also eliminate restrictive geographic boundaries.
The Performance Management Framework is the foundation of how we measure our success. We will improve this framework to better reflect the work we do, and demonstrate our results.
The CRA has also developed strategies that focus on improving non-compliance in the areas of GST/HST filings and registrations, and personal and corporate income tax filings. We will use new risk assessment and data mining techniques to improve the detection of filing and registration non-compliance. Our focus on maintaining and enhancing the non-filer/non-registrant component of the underground economy will target higher-risk industries.
The program initiatives we will pursue over the planning period are listed in the following table.
Priority Initiatives
Benefit to Canadians
Our aim is to help protect Canada's tax revenue through a range of verification, audit, and enforcement activities, as well as through education. Our activities focus on the accuracy and completeness with which taxpayers determine their tax liability.
Planned Spending by Program Activity
Program Activity — Expected Results and Measures
Our Priorities
Building trust to promote compliance
We will use communications as a compliance tool to inform taxpayers about the risks of non-compliance and the results of compliance actions that the CRA has undertaken. Such communication helps to enhance the public's trust that the CRA is actively protecting Canada's tax base.
Tax intermediaries are an integral part of Canada's tax system. The majority perform a valuable role in explaining complex tax laws to their clients by helping them to plan their tax affairs in a way that legitimately minimizes taxes owing, while taking advantage of the social and economic incentive programs delivered by the tax system. We are aware that some intermediaries encourage non-compliance. In such instances, the CRA will address those cases quickly and effectively.
We will enhance the administration of the Voluntary Disclosures Program by updating our policies and procedures, improving training and further monitoring to ensure that the administration of the program is consistent across the country.
Strengthening service to make compliance easier
We will enhance the administration of the Scientific Research and Experimental Development Program to ease access to the program, improve its consistency and predictability, and enhance the quality of the claims process.
Making Non-Compliance More Difficult
We are working to address high-risk areas, such as aggressive tax planning, the underground economy, and GST/HST. We are enhancing our risk profiling activities, including the development of risk profiles for specific taxpayer segments. We are also taking measures to address other compliance issues, such as the concerns of provinces and territories about interprovincial tax avoidance and provincial/territorial income allocation.
We will enhance our risk profiling activities, compliance research, and risk assessment by linking them to Agency compliance priorities
We will enhance our risk profiling activities by expanding the use of information gained at the local, regional, national, and international levels. We will further strengthen compliance research and risk assessment by linking our research agenda to Agency compliance priorities to allow us to gather intelligence and identify risk in support of business planning, resource allocation, and program development.
Compliance System Redesign (CSR) is a major business transformation initiative designed to enhance our capacity to manage compliance programs more effectively. CSR provides a modern business solution that will increase our ability to target non-compliance and select appropriate files for audit by improving our risk assessment, workload selection, and audit tools and processes.
The program initiatives we will pursue over the planning period are listed in the following table.
Priority Initiatives
Benefit to Canadians
Our commitment is to fairness, and our aim is to provide a timely redress process whereby taxpayers can dispute CRA decisions regarding their income tax, commodity tax, and CPP/EI files, or register their complaints about the services they have received from the CRA.
Planned Spending by Program Activity
Program Activity — Expected Results and Measures
Our Priorities
Building trust to promote compliance
When taxpayers disagree with our decisions, we provide them with the opportunity for redress. We will review our processes with a view to improving productivity, recognizing the need to provide a correct decision in all cases. This is particularly challenging in the current appeals environment characterized by the high volume of objections filed by taxpayers involved in aggressive tax planning schemes. We will also seek opportunities to enhance our online Appeals services to meet taxpayer demand.
The CRA Service Complaints, Taxpayer Bill of Rights, and Taxpayers' Ombudsman initiatives were introduced to provide taxpayers with an additional level of confidence in the CRA's service. We will support these initiatives by resolving service-level complaints and providing a link between the taxpayer and the appropriate CRA function or the Taxpayers' Ombudsman. The Ombudsman operates independently and at arm's length from the management of the CRA and reports directly to and is accountable to the Minister of National Revenue.
We will strengthen the management of service- related complaints
We will strengthen the CRA's management of service-related complaints by developing a Web portal for use by our Service Complaints officers. The tool will enable staff to identify and analyze service-related complaint issues and take corrective measures to rectify them. This will improve the horizontal management of issues.
We will support the redesigned taxpayer relief registry system with a training course and user guide. The redesigned system has enabled us to better manage the taxpayer relief provisions workload and improve our reporting and analysis capabilities.
We will complete the smooth transition for the successful implementation of the Corporate Tax Administration for Ontario initiative as it affects appeals activities. This will be achieved through the seamless integration of objection and appeals activities and result in a reduction in the compliance burden for Ontario corporations.
We will address staffing challenges
We will address Appeals Branch staffing challenges by enhancing the relatively specialized appeals function and moving the workload between offices.
The program initiatives we will pursue over the planning period are listed in the following table.
Priority Initiatives
Benefit to Canadians
Our aim is to ensure that timely and correct benefit payments are issued to eligible families and individuals through effective service delivery. In addition, we aim to reduce the overall cost of government through efficiencies obtained by reduced duplication in administration and delivery functions.
Planned Spending by Program Activity
Program Activity — Expected Results and Measures
Our Priorities
Making it Easier to Receive the Right Social Benefits
The CRA is a leader in providing tax and benefits services and we continually explore ways to improve service to Canadians. Working within a dynamic framework, we welcome new opportunities for partnerships with interested client governments to enable reliable single-window service delivery.
As more Canadian households access the Internet each year, we will further enhance and promote self-service options to reduce costs and provide timely and efficient taxpayer service. We will enhance My Account for Benefits — improving its presentation, making it easier to navigate, and adding account information for the new harmonized sales tax credits for Ontario and British Columbia.
We will deliver three new benefit programs to Ontario and British Columbia
We will deliver three new benefit programs introduced as a result of Ontario's and British Columbia's decisions to harmonize their sales tax. These programs are the Ontario Sales Tax Transition Benefit, the Ontario Sales Tax Credit, and the British Columbia Harmonized Sales Tax Credit. We have launched the Automated Benefits Application service, which integrated the Canada Child Tax Benefit application with provincial and territorial birth registration processes, in Nova Scotia, British Columbia, and Prince Edward Island. We will work with other provinces and territories to expand this service over the next few years.
Our platform allows us to deliver programs and services for federal, provincial, and territorial government clients. We manage business growth and partnerships to provide the most effective program and service delivery possible, reducing the number of contacts that individuals must make to update program information, benefiting both government clients and recipients. The overall success of our program and service delivery is reflected in our growing number of government clients.
Providing timely and accurate payments to all our recipients is our first priority. To ensure that service levels will be met in the future, we are making additional investments in the modernization of our systems and working on initiatives to ensure that our delivery infrastructure will support core business and growth.
We will strengthen outreach by developing an integrated strategy
Through outreach, we assist benefit recipients in meeting their obligations and obtaining their entitlements in direct support of compliance with CRA administered legislation. Outreach focuses on changing attitudes and behaviours, influencing values, and providing messaging related to service and non-compliance. The Agency-wide direction for outreach is discussed in the section called Taxpayer and Business Assistance (PA1).
We are adding to our service quality by creating new electronic research options, by modernizing and improving our working and testing systems, by expanding training, and by strengthening our procedures manuals.
The electronic and telephone service channels complement each other to provide efficient and effective client support, ranging from supplying general information to dealing with complex account specific issues and transactions. Therefore, we will optimize service delivery channels in order to further this relationship.
We maintain the confidence of benefit recipients, taxpayers, and client governments by applying validation activities. We use a range of tools to verify the accuracy of information provided by individuals, focusing on the validation of information from population segments identified as high-risk. We also identify underpayments as well as overpayments. We are further refining our Benefit Examination Team to achieve greater program effectiveness and efficiencies. We are also developing new validation projects to improve targeting and to ensure optimal use of validation resources.
The program initiatives we will pursue over the planning period are listed in the following table.
Priority Initiatives
Maintaining Business Sustainability
Maintaining business sustainability relates to the business conditions that foster excellence in program delivery through responsible management practices, such as effective accountability and oversight measures, as well as sound management of enterprise risk, human resources, information technology, business knowledge, information, and growth.
Planned Spending by Program Activity
Although our long-term initiatives will promote the longer-term sustainability of the tax system, steps are currently being taken to arrive at the desired end-state. The initiatives listed on the following pages will be undertaken over the planning period to improve or enhance business sustainability.
Improving our Human Resources Capacity
The recruitment and retention of skilled employees remains a priority for the Agency. In an effort to ensure that we are able to continue to meet our business objectives, we are implementing proactive measures to ensure that the capacity and capability of our human resources are sustained.
In the Sixteenth Annual Report to the Prime Minister on the Public Service of Canada, the Clerk of the Privy Council reinforced Public Service Renewal as a priority. The following four main areas will continue to be pursued under this initiative:
- Integrated business and human resources planning;
- Strategic recruitment;
- Investment in employee development to develop the skills that will meet our future needs; and
- Systems and processes that will enable us to effectively plan, recruit and develop.
The CRA remains a strong contributor to this government-wide effort. Our Agency Workforce Plan sets a forward agenda to support the integration of the management of its workforce in support of business objectives. It is an evergreen document and will continue to be revised on an annual basis to reflect our changing environment and emerging priorities. It clearly illustrates how we will address the priorities set in the Public Service Renewal Action Plan.
The CRA, as a separate employer, has sole authority to enter into collective agreements with bargaining agents. The Board of Management, following consultations with the Treasury Board of Canada Secretariat, provides direction on collective bargaining. Before we initiate collective bargaining with the our bargaining agents, we will identify essential services, manage potential issues, and identify risks.
Plan for and Acquire Talent
Our 2010-2011 to 2012-2013 Agency Workforce Strategy outlines the activities that we will undertake to ensure that we can continue to meet our business objectives. These activities will address knowledge transfer and retention and mobilization of talent.
Furthermore, we will continue to undertake succession planning for both the executive and non-executive cadres, implement items outlined in the Strategic Direction for Employment Equity covering fiscal years 2010-2011 to 2012-2013, and continue to roll out our Official Languages Action Plan.
We are committed to ensuring that we have the right people in the right place at the right time, while offering our employees outstanding career opportunities. To this end, the Agency has instituted Pre-Qualification Processes (PQPs), where candidates applying for permanent positions with the Agency must demonstrate the competencies required for the position. The Agency's Competency Based Human Resource Management (CBHRM) approach includes tools and processes that facilitate the assessment of applicants' competencies. The CBHRM competencies are measurable or observable knowledge, skill, ability or behavioural characteristic that contributes to successful job performance.
We will fully implement end-state pre-qualified pools
The Agency is committed to fully implementing its End-state PQP which requires that, for all selection processes, applicants have the required base competency profile and levels for the posted job in advance. We will fully implement End-State PQP to significantly reduce the time to staff and ensure the CRA has the talent to meet its business needs.
In addition to post-secondary recruitment, we will acquire new talent as part of the harmonization of provincial sales taxes in Ontario and British Columbia. New employees from the two provinces will be integrated into the CRA over the next three fiscal years.
Retain and Mobilize Talent
We will support workplace excellence through the promotion of a respectful workplace linked to our 2008 Public Service Employee Survey results. We will reinforce the application of our standards of ethics in our day-to-day business activities, and we will further strive to ensure co-operative and productive relationships with our bargaining units. We will provide opportunities for employee movement throughout the organization through talent management and succession planning activities.
Develop Talent
Investing in employee development continues to be a commitment of the CRA. We will implement a directive and tools that are aligned with our new Learning Policy that are designed to support the planning and evaluation of learning activities.
The sustainability of the management cadre is essential to ensuring the sustainability of the CRA. To this end, we will expand our management development programs by increasing the number of employees participating in these programs. We intend to attract even more individuals from the employment equity groups into the program.
IT Responsiveness and Sustainability
Our IT strategy consists of enhancing the business-IT alignment, delivering continuous process improvement, and ensuring a knowledgeable, skilled and engaged IT workforce. In support of our aim to deliver on existing and future commitments, strategic investments will be made to ensure the currency of the Agency's applications portfolio and Data Centre facilities.
The CRA's programs and services depend on a complex information technology infrastructure environment. This infrastructure is both aging and complex. Although we have internally funded significant redesign efforts in the past, our capacity to continue to do so in the future is severely limited. The steps taken to address these pressures, in particular formalizing the Strategic Investment Plan, confirm that our ability to reallocate internally to address this investment challenge has been greatly diminished and most opportunities for significant efficiency gains have already been exhausted.
We need to be able to respond in the future with the same speed and rigour that we have consistently shown, most recently with the implementation of the Government of Canada's Economic Action Plan. We were asked to quickly implement changes to tax brackets, the basic personal amount, and the Working Income Tax Benefit as well as the introduction of important new measures like to Home Renovation Tax Credit and the First Time Home Buyers Tax Credit. We worked very quickly to implement these measures to ensure that Canadians had all of the information and tools necessary to take advantage of them.
Our IT security landscape demands constant vigilance, and we are continually evolving our security posture to address increasingly complex cyber-threats. Our development of a credential and identity management service will enable an expansion of our suite of electronic services, while also providing further opportunity to collaborate with provinces and other business partners.
The next major productivity enhancing focus for us is to empower the knowledge-worker through intelligent risk driven workload selection, enterprise content management, workflow management, and collaboration tools. Our challenge will be to develop the tools best suited to our organization, and integrate them into our complex infrastructure.
Bolster Our IT Infrastructure and Solutions
During the planning period, we will develop and advance our data centre recovery and business continuity planning to ensure recoverability efforts continue to meet business requirements for all of our systems. Additionally, we will further develop our multi-year asset management plan to support the life cycle management of our IT assets.
We will also advance our Enterprise Content Management (ECM) Program to address business demands and improve productivity. ECM will provide a CRA-wide approach to the cohesive management of unstructured content with a technical solution to support our Information Management Strategy. Through the use of ECM and supporting technologies, we will strategically position the CRA to align with government and industry practices as it focuses on delivering document management, records management, enterprise search, and collaboration capabilities.
Given that we have a very large Internet presence and manage enormous amounts of confidential taxpayer data, we will strive to meet higher security and service levels and be a leader in achieving operational excellence with regard to protecting our data and other IT assets.
We will evolve our IT security program to ensure that we continue to be at or above the IT security recommendations set out for the Government of Canada. To that end, a multi-year Secure Data Network and Assets (SDNA) Program has been launched. The first phase of this program will deploy security software to provide Network Access Control, Anti-Spyware, and Host Intrusion Prevention for all CRA and Canada Border Services Agency (CBSA) computer workstations.
We will also undertake options analysis for three additional projects that make up Phase II of the SDNA program. These include encryption of data stored on backup tapes in the distributed environment, protection against internet-based denial of service attacks, and network encryption to protect data that must travel across the entire CRA network.
We will maintain our focus on providing a stable, secure, and highly available distributed computing environment through careful planning, recognizing that this infrastructure will continue to evolve and mature.
The CRA provides IT services and Corporate Administrative System services to the CBSA. We will work in partnership with the CBSA to support the significant change agendas of both agencies and to develop plans that integrate the IT business priorities of both agencies.
We will continue to play a leadership role in evolving the Government of Canada's business and technology models for electronic service delivery by sharing best practices with our partners and by participating in the Treasury Board Secretariat's committees and work teams.
Ensure Secure Management of Protected Taxpayer Information
To continue to ensure that the proper controls are in place to prevent the inappropriate access and/or disclosure of information, we will pursue two initiatives.
We will strengthen information technology security
First, we will carry out our Identity and Access Management Project to standardize processes used to manage access to our data, thereby ensuring compliance with our security policies and rules. Second, in order to ensure that we have a comprehensive strategy for identifying and managing the risk of internal fraud across the Agency, we will develop a comprehensive Internal Fraud Control Program and explore further opportunities such as modernizing the National Audit Trail System's technology.
These will form part of our Corporate Security Strategy, that is under development. Its objective is to ensure that CRA data, information, and assets continue to be protected from all current and future threats. Among other things, this strategy will be used to validate and prioritize proposed security initiatives on an ongoing basis.
Access to Information and Privacy
The CRA will continue to meet the legislative requirements of the Access to Information Act and the Privacy Act, and will provide guidance, policy advice, and training to employees on their obligations under these acts. In particular, we will expand our Access to Information and Privacy awareness program across the Agency to include training that emphasizes general privacy principles and the Treasury Board of Canada Secretariat's directive on privacy impact assessment. Furthermore, we are exploring the implementation of a chief privacy officer to strengthen the privacy governance structure and to have a central focus for privacy management and overall privacy leadership.
Manage Business Information
Information management relates to the operational necessity of identifying, managing, and safeguarding information that is required for decision-making, policy-making, or accountability purposes. To support this priority, we will enhance our information management practices by implementing an Information Management Strategy to ensure that our information and data products are of the highest quality.
Our Agency Intranet Program will lead the way in our development of Information Management initiatives. We will increase our capacity to effectively manage business demands within the intranet environment, deliver intranet content in support of employee and business needs, create a sustainable and responsive environment, and respond to growing business demands in the areas of virtual management and collaboration.
Accountability and Oversight
Having accountability structures that ensure sound financial and risk-management practices are in place and followed is essential to helping us realize our vision.
Reinforce Accountability and Oversight
We are implementing a number of measures to gain greater assurance that appropriate internal control over financial reporting is operating effectively. These measures will provide assurance that our financial reporting is reliable and significant risks to accurate financial reporting are identified and addressed. They will also respond to audit and reporting requirements under federal-provincial tax collection agreements, to recent policy developments in the area of financial management at the Treasury Board of Canada Secretariat, as well as to the new provisions of the Financial Administration Act.
The new Treasury Board Policy on Internal Control that came into effect on April 1, 2009, requires deputy heads and chief financial officers to sign a revised annual statement of management responsibility. Consequently, one of the initiatives we have launched is the Chief Executive Officer (CEO)/Chief Financial Officer (CFO) Certification Process. This process will ensure that the Commissioner (who is also the CEO) and the CFO have sufficient information on internal control over financial reporting to fulfil their responsibilities under the new policy. It will also improve the quality, reliability, and transparency of our financial reporting to stakeholders. In addition, the certification process will generate information that will respond to the new provisions of the Financial Administration Act, which designate deputy heads as the accounting officers for their organizations. This role requires them to appear before parliamentary committees to answer questions about measures taken to maintain an effective system of internal control.
Refine our Strategic Investment Plan
In 2009-2010, we implemented a number of enhancements to our investment planning and monitoring framework, including the implementation of practices intended to further mature the project portfolio management approach in the CRA and the development of a long-term strategic investment plan (SIP). The purpose of the SIP is to clearly define strategic investment priorities, to more effectively communicate the magnitude and nature of the investment challenges and risks we will face over the next ten years, and to provide better information to senior management for decision-making. It is intended to complement our existing strategic planning processes to improve long-term planning and the allocation of available investment resources.
We will update our strategic investment plan periodically to align with corporate risks and priorities
The SIP will be further refined in 2010-2011 (and periodically thereafter) to ensure sustained alignment with corporate risks and priorities. Our project portfolio management approach to investment planning will also be facilitated by the implementation of a new project management tool, integrated with our Corporate Administrative System, and related improvements to our project management and oversight framework.
Employ Risk Management Consistently and Systematically
Our Enterprise Risk Management Program was created to ensure that we develop and implement a systematic and comprehensive approach to managing risks that is fully integrated into our strategic, operational, and financial decision-making processes.
Over the planning period, we will focus on further embedding risk information into key CRA processes to achieve true risk convergence. We will implement a risk monitoring and reporting framework to evaluate the effectiveness of risk action plans. In addition, we will continue to build our risk management capacity through the delivery of risk management training.
Telephony Infrastructure Renewal
As a result of evolving industry technology standards, the CRA will have to change its telephony general office systems and infrastructure technology as part of its infrastructure sustainability plans. Although the principle driver for change is sustainability, the new technology will provide opportunities to adopt leading edge tools for CRA office workers where warranted.
The strategy for the renewal will be to maximize the life span of the existing telephone systems, while minimizing the need for major capital infusions during any one fiscal period.
Sustainable Development Strategy
Successive CRA sustainable development strategies have collectively modified the way the CRA acquires, uses, and disposes of assets since 1997. Through strategic interventions, the CRA continues to:
- reduce the impact of its operations on land, air, and water; and
- deliver its services in a more sustainable manner.
These goals have been realized through systematic efforts to:
- engage employees and equip them to apply sustainable development practices in their job; and
- modernize the systems and processes that support and maintain sustainable development practices in the workplace.
As the CRA aligns itself with the requirements of the new Federal Sustainable Development Act (June 2008), the focus of its Sustainable Development Program for the planning period will be on:
- extending the current CRA Sustainable Development Strategy 2007-2010 by one year; and
- preparing and implementing the CRA Sustainable Development Strategy 2011-2014.
The new Sustainable Development Strategy will both respond to the pending Federal Sustainable Development Strategy 2010-2013 and support the CRA's priorities by further integrating sustainable development into CRA business and operations.
For more information on the CRA's sustainable development program, please visit the CRA's Web site: www.cra.gc.ca/gncy/sstnbl.
Further Tax Harmonization
The Government of Canada and the provinces of Ontario and British Columbia have agreed to implement the harmonized sales tax (HST) on July 1, 2010. This will replace existing provincial sales taxes and the federal goods and services tax. Through tax harmonization, we lever our tax administration infrastructure to eliminate administrative duplication and enable enhanced delivery of single-window services.
This is a major development in Canadian tax administration that builds on the success of harmonizing sales taxes in New Brunswick, Nova Scotia, and Newfoundland and Labrador, and the more recent transfer of Ontario's corporate tax administration to the CRA.
We will undertake a number of activities to ensure that both the CRA and taxpayers are ready for July 1, 2010. This includes changing our systems to accommodate new requirements to ensure taxpayers are provided with information necessary to comply with the new law. In addition, a number of compliance programs will be modified to reflect the potential for increased risks associated with collection of the new revenues.
Priority Initiatives
Canada's Economic Action Plan Initiatives
Through Canada's Economic Action Plan the federal government is providing significant new personal income tax relief. The measures were effective as of January 1, 2009, and are providing benefits, particularly for low- and middle-income Canadians.
The Canada Revenue Agency has implemented many of the Economic Action Plan initiatives like personal income tax relief and an increased Working Income Tax Benefit, as well as other measures targeted to help families, seniors, workers, and persons with disabilities. We administer tax measures designed to stimulate Canada's economy and help lay a solid foundation for future economic growth, job creation, and a higher standard of living for all Canadians.
We also administer corporate income tax reductions that help position Canadian businesses to weather the effects of the current global economic challenges; to maintain and create jobs; and to emerge from the economic downturn even stronger.
We are committed to ensuring that Canadians have the information they need to take advantage of the tax savings that can help put money back in their pockets during these difficult economic times. In February of 2009, shortly after the introduction of the Economic Action Plan, our minister announced the launch of the ‘You've earned it. Claim it.' advertising campaign to inform Canadians of the tax credits and benefits available to them.
The Economic Action Plan highlighted the following programs that we administer and deliver on behalf of Canadians:
The Working Income Tax Benefit Program provides a refundable tax credit intended to provide tax relief for eligible working low-income individuals and families who are already in the workforce and to encourage Canadians to enter the workforce. As part of Economic Action Plan, the federal government has increased funding to this program by $580 million for 2009 and later years.
The Canada Child Tax Benefit (CCTB) Program provides a tax-free monthly payment made to eligible families which is intended to help them with the cost of raising children under the age of 18. Through the Economic Action Plan, the federal government has raised the level at which the National Child Benefit Supplement amount for low-income families and the CCTB are phased out, so that eligible families with two children can receive an additional benefit of up to $436 starting in July 2009.
For the 2009 tax year, the Home Renovation Tax Credit (HRTC) Program provides a non-refundable tax credit for eligible expenses incurred for work performed or goods acquired for an eligible dwelling. The HRTC provides about $3 billion in tax relief and is part of the $62 billion in stimulus delivered through the Economic Action Plan.
Section III:Supplementary Information
Financial Highlights
The future-oriented financial highlights presented within this Report on Plans and Priorities (RPP) are intended to serve as a general overview of the Canada Revenue Agency (CRA) financial position and operations. These future-oriented financial highlights are prepared on an accrual basis to strengthen accountability and improve transparency and financial management.
Future-oriented financial statements can be found on CRA's Web site at: www.cra.gc.ca/rppe
Capital assets totalling $537.1M comprise most of the Agency's Assets for 2010-2011, with software ($490.0M) being the largest asset class, as the CRA looks to take advantage of the newest technology in delivering its programs and services to Canadians. Net Liabilities represent liabilities incurred by the Agency which are expected to be funded by appropriations in future years, as they are paid.
The chart below outlines the Agency's future-oriented total expenses for 2010-2011. It is projected that total expenses will be $4,404.7M for the coming fiscal year. Most of these expenses ($3,085.0M) will be directed at enhancing CRA's capability to achieve its first strategic outcome: Taxpayers meet their obligations and Canada's revenue base is protected. CRA will focus on Tax Integrity and Strengthening Services. Tax Integrity will be achieved by making it harder to be non-compliant by actively and consistently addressing the promotion of non-compliance and improving communication and information-sharing with federal and international stakeholders to permit rapid response to emerging compliance threats. Strengthening Service will be achieved by making it easier for taxpayers to comply by carrying out CRA's Service Strategy to expand self-service options, optimize telephone service, and fine-tune the outreach and communication efforts. $131.9M in expenses will be used to meet CRA's second strategic outcome: Eligible families and individuals receive timely and correct benefit payments. To maintain a strong performance in benefit programs delivery, CRA's focus will mostly be on Strengthening Service and Benefits Validation. Strengthening Service will be achieved by improving communications and enhancing electronic service offering. Benefits validation will be achieved by creating a credible enforcement presence and by educating benefit recipients about their rights and obligations. $3.9M in expenses will be used to support CRA's third strategic outcome: Taxpayers and benefit recipients receive an independent and impartial review of their service-related complaints with the Taxpayers' Ombudsman activity. Finally, $1,183.9M in expenses will be used in support of internal services. Internal Services activities are those that apply across the organization and not to a specific program. These include activities such as Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Travel and Other Administrative Services.
The chart below outlines the CRA's future-oriented total non-tax revenues for 2010-2011. It is projected that total non-tax revenues will be $572.2M for the coming fiscal year. The majority of these non-tax revenues ($287.0M) are revenues credited to Vote 1 and are expected to come from the administration of the Employment Insurance Act ($154.4M) and the Canada Pension Plan ($132.6M). While 40% ($226.9M) are non-tax revenues available for spending and are expected to come from service fees to Other Government Departments ($158.1M), Administration fees for Provincial Programs ($63.7M), Ruling Fees to taxpayers ($1.7M), and other miscellaneous Respendable fees and changes ($3.4M). The remaining 10% ($58.3M) are non-tax revenues not available for spending and will come from the recovery of employee benefit costs relating to non-tax revenues credited to Vote 1 and revenues available for spending ($55.8M) as well as other miscellaneous non-respendable non-tax revenues ($2.5M).
List of Tables
The following tables are available electronically on the Treasury Board of Canada Secretariat's Web site:
Table 2: Details on Transfer Payment Programs
Table 4: Sources of Respendable and Non-Respendable Non-Tax Revenue
The following tables are available electronically on the CRA Web site: www.cra.gc.ca/rppe
Table 1: Agency Planned Spending and Full-Time Equivalents
Table 3: Services Received Without Charge
Canada Revenue Agency Future-oriented Financial Statements
Green Procurement
For more information on the CRA's green procurement program, please visit the Treasury Board of Canada Secretariat's Web site: http://www.tbs-sct.gc.ca/rpp/2010-2011/inst/nar/st-tstb-eng.asp
Service Standards at the CRA
Our service standards regime is a vital and integral part of our planning, reporting, and performance management processes. Meeting our service standards targets demonstrates that we are responsive to the needs of taxpayers and benefit recipients. This helps establish credibility in our operations and contributes to increasing the level of confidence that Canadians can place in government. For more information on our Service Standards, please visit the CRA Web site at: www.cra.gc.ca/gncy/stndrds/menu-eng.html
Internal Audits and Evaluations
For more information on the Agency's Internal Audits and Evaluations, please visit the Treasury Board of Canada Secretariat's Web site: http://www.tbs-sct.gc.ca/rpp/2010-2011/inst/nar/st-tstb-eng.asp