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Section III: Supplementary Information

Financial Highlights

The future-oriented financial highlights presented within this Report on Plans and Priorities are intended to serve as a general overview of the Canada Revenue Agency's (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 the CRA's website.

For the Year Ending March 31

($ millions)
Condensed Statement of Financial Position
Future -oriented 2011-2012
Future-oriented 2010-2011
Assets    
Financial assets
198.7
194.9
Non-financial assets
503.4
548.8
Total
702.1
743.7
Liabilities
984.1
960.4
Net Liabilities
-282.0
-216.7
Total
702.1
743.7

Capital assets totalling $485.5M comprise most of the Agency's assets for 2011-2012, with software ($441.5M) 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.

For the Year Ending March 31

($ millions)
Condensed Statement of Operations
% Change
Future-oriented
2011-2012
Future-oriented
2010-2011
Expenses
 
 
 
Total Expenses
1.27%
4,682.2
4,623.3
Non-Tax Revenues
 
 
 
Total Non-Tax Revenues
2.34%
606.7
592.8
Net Cost of Operations
1.12%
4,075.5
4,030.5

The chart below outlines the Agency's future-oriented total expenses for 2011-2012. It is projected that total expenses will be $4,682.2M for the coming fiscal year.

Most of these expenses ($3,150.8M) will be directed at enhancing the CRA's capability to achieve its first strategic outcome: Taxpayers meet their obligations and Canada's revenue base is protected. The 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 the CRA's Service Strategy to expand self-service options, optimize telephone service, and fine-tune the outreach and communication efforts.

$152.3M in expenses will be used to meet the CRA's second strategic outcome: Eligible families and individuals receive timely and correct benefit payments. To maintain a strong performance in benefit programs delivery, the CRA's focus will mostly be on Strengthening Service and Benefits Validation. Strengthening Service will be achieved by improving communications and enhancing electronic service offerings. Benefits validation will be achieved by creating a credible enforcement presence and by educating benefit recipients about their rights and obligations.

$3.8M in expenses will be used to support the 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, $1,375.3M 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.

Future Oriented Financials Charts

The chart below outlines the CRA's future-oriented total non-tax revenues for 2011-2012. It is projected that total non-tax revenues will be $606.7M for the coming fiscal year. The majority, 52%, of these non-tax revenues ($316.8M) are revenues credited to Vote 1 and are expected to come from the administration of the Employment Insurance Act ($177.2M) and the Canada Pension Plan ($139.6M). While 38% ($230.6M) are non-tax revenues available for spending and are expected to come from service fees to other government departments ($154.6M), administration fees for provincial programs ($72.1M), ruling fees to taxpayers ($1.6M), and other miscellaneous respendable fees and changes ($2.3M). The remaining 10% ($59.3M) 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 ($56.9M) as well as other miscellaneous non-respendable non-tax revenues ($2.4M).

Future Oriented Financials Charts

List of Tables

The following tables are available electronically on the Treasury Board of Canada Secretariat's Web site.

Details on Transfer Payment Programs

Children's Special Allowance Payments
Disbursement to Provinces under the Softwood Lumber Products Export Charge Act, 2006

Sources of Respendable and Non-Respendable Non-Tax Revenue

Respendable Revenue
Non-Respendable Non-Tax Revenue (Agency Activities)
Upcoming Internal Audits and Evaluations over the next three fiscal years
Greening Government Operations

The following tables are available electronically on the CRA Web site.

Agency Planned Spending and Full-Time Equivalents

Agency Main Estimates and Planned Spending and Full-Time Equivalents
Agency Planned Spending by Program Activity and Full-Time Equivalents
Canada Revenue Agency Future-Oriented Financial Statements

Greening government operations

For more information on greening government operations at the CRA, please go to the Treasury Board of Canada Secretariat's Web site.

Internal audits and evaluations

For more information on the CRA's Internal Audits and Evaluations, please go to the Treasury Board of Canada Secretariat's Web site.

Section IV :Other Items of Interest

Strategic Environmental Assessments

Given its administrative mandate, the CRA has not conducted Strategic Environmental Assessments (SEA) to date. If required, the CRA will conduct SEAs, with the support of the Canadian Environmental Assessment Agency.

Additional information is available electronically as follows:

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.

Service Standards

Table 1: Taxpayer and Business Assistance (PA1) (Enquiries and Information Services)

Service
Standard
Target
1. General enquiries – telephone service level
Our goal is to respond to calls in the agent queue within two minutes.
80%
2. Business enquiries – telephone service level
Our goal is to respond to calls in the agent queue within two minutes.
80%

Table 2: Taxpayer and Business Assistance (PA1) (Legislative Policy and Regulatory Affairs)

Service
Standard
Target
3. Charities – response to telephone enquiries
Our goal is to respond to calls in agent queue within two minutes.
80%
4. Charities – responding to applications for charitable registrations
Our goal is to review and respond to applications for charitable registration upon receipt of a complete application within established standards.
80%
5. Advance income tax rulings to taxpayers
Our goal is to issue advance income tax rulings to taxpayers within an average of 60 calendar days of receipt of all essential information.
100%
6. Technical interpretations to taxpayers
Our goal is to issue technical interpretations to taxpayers within an average of 90 calendar days of receipt of a request.
100%
7. GST/HST rulings and interpretations – telephone enquiries
Our goal is to respond to calls in the queue within two minutes.
80%
8. GST/HST rulings and interpretations – written enquiries

Our goal is to respond to written requests for GST/HST rulings and interpretations within 45 working days of receipt in the CRA. This excludes highly technical and precedent and/or policy-setting rulings and interpretations.

80%
9. Applications to register pension plans
Our goal is to complete a full review and provide a response on applications to register pension plans within 180 calendar days.
85%
10. Amendments to registered pension plans
Our goal is to review pension plan amendments for compliance with the Income Tax Act within nine months.
80%
11. Retirement savings plans (applications to register, amend, or terminate)
Our goal is to respond to applications to register, amend, or terminate Retirement Savings Plans within 60 calendar days.
80%
12. Retirement income funds (applications to register, amend, or terminate)
Our goal is to respond to applications to register, amend, or terminate retirement income funds within 60 calendar days.
80%
13. Education savings plans (applications to register, amend, or terminate)
Our goal is to respond to applications to approve, amend, and terminate education savings plans specimen plans within 60 calendar days.
85%
14. Actuarial valuation reports
Our goal is to review actuarial valuation reports within nine months and provide written approval of the recommended employer contributions.
80%
15. Deferred income plans – response to written enquiries
Our goal is to respond to written enquiries within 60 calendar days.
80%
16. Deferred profit sharing plans –Reviewing applications
Our goal is to review applications to register new deferred profit sharing plans within 180 days.
80%
17. Deferred profit sharing plans – Amendments and terminations
Our goal is to review requests to amend and to terminate plans within 270 days.
80%

Table 3: Assessment of Returns and Payment Processing (PA2)

Service
Standard
Target
18. Responding to taxpayer-requested adjustments (T1)
Our goal is to complete the adjustment and mail a Notice of Reassessment within an average of eight weeks provided all requisite information has been received from the taxpayer.
100%
19. Responding to taxpayer-requested adjustments (T1) received by Internet
Our goal is to complete the adjustment and mail a Notice of Reassessment within an average of two weeks provided all requisite information has been received from the taxpayer.
100%
20. Processing T1 individual income tax returns (paper)
Our goal is to process a paper T1 return and mail a Notice of Assessment and refund, if applicable, in an average of four to six weeks.
100%
21. Processing T1 individual income tax returns (EFILE, TELEFILE, NETFILE)
Our goal is to process electronic T1 returns (EFILE, TELEFILE, and NETFILE) within an average of two weeks of receipt.
100%
22. Processing T3 trust returns
Our goal is to process T3 trust returns within four months.
95%
23. Processing excise tax, excise duty, softwood lumber returns, and air travellers security charge returns
Our goal is to assess excise tax, excise duty, softwood lumber returns, and air travellers security charge returns within 90 days of receipt.
95%
24. Processing GST/HST returns
Our goal is to process GST/HST returns within 30 calendar days of receipt.
95%
25. Processing T2 corporation income tax returns
Our goal is to assess T2 returns (corporation income tax) within 60 days.
90%

Table 4: Accounts Receivable and Returns Compliance (PA3)

Service
Standard
Target
NONE Footnote 1
 
 
1 The Taxpayer Relief service standard is being deleted due to an inability to report reliable results. The workload is under review. With a new Taxpayer Relief Program being implemented, a new taxpayer relief service standard will be developed and reported under Appeals (PA5).

Table 5: Reporting Compliance (PA4)

Service
Standard
Target
Claims – SR&ED tax incentives
26. Claims – SR&ED tax incentives – refundable claims
Our goal is to process claims for tax incentives from businesses that conduct scientific research and experimental development (SR&ED) in Canada within 120 calendar days from receipt of a complete claim for refundable claims.
90%
27. Claims – SR&ED tax incentives – non‑refundable claims
Our goal is to process claims for tax incentives from businesses that conduct scientific research and experimental development (SR&ED) in Canada within 365 calendar days from receipt of a complete claim for non-refundable claims.
90%
28. Claims – SR&ED tax incentives – claimant‑requested adjustments to refundable claims
Our goal is to process claims for tax incentives from businesses that conduct scientific research and experimental development (SR&ED) in Canada within 240 calendar days from receipt of a complete claim, for refundable claims related to adjustments requested to previously filed income tax returns.
90%
29. Claims – SR&ED tax incentives – claimant‑requested adjustments to non‑refundable claims
Our goal is to process claims for tax incentives from businesses that conduct scientific research and experimental development (SR&ED) in Canada within 365 calendar days from receipt of a complete claim for non-refundable claims related to adjustments requested to previously filed income tax returns.
90%
Claims – Video and film tax credits
30. Claims – video and film tax credits – refundable claims – unaudited
Our goal is to review T2 corporation income tax returns that include claims for the Canadian Film or Video Production Tax Credit, the Film or Video Production Services Tax Credit, the BC Film and Television Tax credit, the BC Production Services Tax Credit, the Manitoba Film and Video Production Tax Credit, and the Ontario Film and Television Tax Credit within 60 calendar days from the date of receipt where no audit action is undertaken.
90%
31. Claims – video and film tax credits – refundable claims – audited
Our goal is to review T2 corporation income tax returns that include claims for the Canadian Film or Video Production Tax Credit, the Film or Video Production Services Tax Credit, the BC Film and Television Tax credit, the BC Production Services Tax Credit, the Manitoba Film and Video Production Tax Credit, and the Ontario Film and Television Tax Credit within 120 calendar days from the date of receipt where audit action is undertaken.
90%

Table 6: Appeals (PA5)

Service
Standard
Target
32. Problem Resolution Program
Our goal is to acknowledge receipt of a problem within two working days.
95%
33. Problem Resolution Program
Our goal is to resolve the problem within 15 working days. If we cannot (for example, if a case is complex), we will make contact within that time to indicate an anticipated date of resolution.
95%
34. First contact letter for disputes
Our goal is to acknowledge taxpayer disputes within 30 calendar days after we receive them.
85%

Table 7: Benefit Programs (PA6)

Service
Standard
Target
35. Canada Child Tax Benefit enquiries – telephone service level
Our goal is to respond to calls in the agent queue within two minutes.
75%
36. Processing benefit applications and marital status change forms – timeliness
Our goal is to issue a payment, notice, or explanation within 80 calendar days.
98%
37. Processing benefit applications and marital status change forms -accuracy
Our goal is to accurately process the appropriate payment and notice and, if necessary, issue a letter requesting additional information.
98%
38. Responding to benefit and credit enquiries – timeliness
Our goal is to respond to written enquiries and telephone referrals from call centers within 80 calendar days.
98%
39. Responding to benefit and credit enquiries – accuracy
Our goal is to respond to written enquiries and telephone referrals from call centers, with correct information, and accurately process new recipient information, including issuing a payment, notice, or letter.
98%
40. Validation and control – Results of review
Our goal is to inform you of the result of our review within 45 days after we receive the information requested.
90%
41. Processing a request to authorize or cancel a representative – timeliness (peak)
Our goal is to process your request to authorize or cancel a representative received during peak tax time (mid-March to mid-July) within 20 business days of receipt by the CRA.
90%
42. Processing a request to authorize or cancel a representative – accuracy (peak)
Our goal is to accurately process your request to authorize or cancel a representative; if necessary, we will send you a letter requesting additional information.
98%
43. Processing a request to authorize or cancel a representative – timeliness (non‑peak)
Our goal is to process your request to authorize or cancel a representative received during non-peak tax time, (mid-July to mid-March) within five business days of receipt by the CRA.
90%
44. Processing a request to authorize or cancel a representative – accuracy (non‑peak)
Our goal is to accurately process your request to authorize or cancel a representative; if necessary, we will send you a letter requesting additional information.
98%

Table 8: Internal Services (PA7)

Service
Standard
Target
45. Taxpayer requests for statistical tax data
Our goal is to respond to taxpayer requests for statistical data within an average of 30 calendar days.
100%

Three-Year Plan for Transfer Payment Programs

Under section 6.6.1 of the Policy on Transfer Payments (PTP), deputy heads are required to provide to the Treasury Board Secretariat (TBS) by April 1 of each year a three-year plan for their transfer payment programs (TPPs). For more information, please go to the CRA Web site.