Ministerial Welcome Package – Book 2

From: Canada Revenue Agency

Corporate Briefing

Overview documents on the CRA’s structure, governance, corporate committees, planning and budget

November 2019

* Insert from Library of Parliament titled How Canadians Govern Themselves to be included as an Annex

The Canada Revenue Agency – a brief history

Before Confederation, the colonial government collected taxes, usually through customs duties, and sent them to the two mother countries, England and France. Following Confederation in 1867, the new government was given the power to raise money by taxation, and responsibilities were divided between the federal and provincial governments. In 1868, two separate departments were established: Customs (responsible for collecting customs duties and canal tolls) and Inland Revenue (responsible for collecting all excise duties, indirect taxes, and stamp duties).

In 1887, the Ministers of Customs and of Inland Revenue were reduced to controllers. Responsibility for their departments was placed under the Department of Trade and Commerce from 1892 to 1897, once again elevating them to full departmental status. They were merged as Customs and Inland Revenue in 1918, which, from 1921 to 1927, was known as Customs and Excise. The collection of income tax (a responsibility of the Department of Finance since 1917) was transferred to this new body in 1924.

In 1927, the Department of National Revenue Act established the Department of National Revenue by renaming the Department of Customs and Excise. The new Department was responsible for assessing and collecting duties and taxes, monitoring the movement of people and goods across the Canadian border, and protecting Canadian industries from foreign competition. The same act created a second department to collect income tax, a responsibility that a commissioner from the Department of Finance had been meeting. Both departments had the same Minister, but each had its own departmental organization and Deputy Minister.

From 1929 to 1934, as a result of the Great Depression, customs and excise duties declined by 65%, which led to an increase in personal and corporate taxes and the increase of sales tax across most of the provinces. When the Second World War began in 1939, the federal government began to move to incorporate the responsibility for the collection of personal and corporate taxes under a central fiscal authority; the goal was to raise funds more efficiently and more equitably distribute the war’s financial burden across provinces and segments of society. The provinces surrendered the ability to collect these taxes to the federal government in 1941, and by 1946, these direct taxes accounted for 56% of Canada’s revenue. The authority to collect direct taxes was never restored to the provincial level. However, in response to provincial dissatisfaction with the change in responsibilities, the government began distributing federal grants to provinces. The Income Tax Act was then passed in 1948, and introduced 10 federal tax brackets.

The Department of National Revenue kept its name until the 1970s, when it became known as Revenue Canada until 1999. On April 29, 1999, Parliament passed the Canada Customs and Revenue Agency Act, which established the Canada Customs and Revenue Agency (now the Canada Revenue Agency). The change in status from department to agency, which took place on November 1, 1999, has helped build a modern organization that is committed to leadership, innovation, and client service. Following this change, a Commissioner and Chief Executive Officer of the Agency was first appointed on November 1, 1999. The Agency’s Board of Management, was also implemented at this time.

On December 12, 2003, the government announced the creation of the Canada Border Services Agency (CBSA), which is responsible for Canada's customs operations. Two years later, on December 12, 2005, legislation came into effect to legally change our name to the Canada Revenue Agency (CRA).

The 100^th anniversary of the establishment of income tax has just passed. In fact, it was called the Income War Tax Act when it received Royal Assent in 1917. When the First World War placed an unprecedented drain on Canada’s finances, personal income tax was originally introduced as a temporary measure to finance the war. During this period, the CRA had 36 employees across the country. The Agency has come a long way since then, having grown to employ more than 40 thousand individuals serving Canadians. The Agency is the largest civilian employer in the Government of Canada, and has the highest retention rate amongst government organizations. We are also consistently ranked in Canada’s top 100 employers.

The tax system and our forms have changed over time, and so have our processing procedures. We have evolved from having a single switchboard telephone operator per office to having modern call centres across the country that provide millions of Canadians with answers to their questions about income tax and excise taxes, benefit programs, and the GST/HST. Since its inception, the CRA has consistently grown to better serve Canadians.

The CRA administers tax legislation and regulations, such as the Income Tax Act and the Excise Tax Act, for the Government of Canada and for most provinces and territories. The Agency is in charge of administering tax, and ensuring compliance on behalf of governments across Canada. We have also transformed beyond this role to focus on administering various social and economic benefits and incentive programs delivered through the tax system, thereby contributing to the ongoing economic and social well-being of Canadians.

It’s an exciting time for the CRA as we are modernizing to ensure we put Canadians at the center of everything, including service design and delivery. We are listening to Canadians’ expectations and focusing our efforts on innovating our approaches to service delivery to optimally serve Canadians. As technology has advanced, the Agency advanced alongside it by incorporating an ever growing list of new electronic services to meet the growing needs of Canadians.

Even though we’ve made progress, our story continues and we look forward to writing the next chapter. Our plans for the future include keeping pace with technological advancement by having a workforce of the future, considering the taxpayer user experience, and modernizing and digitizing our systems and processes. We also aim to maintain and promote a client-centric approach to program design, and want to continue to enhance our reputation and build greater trust among Canadians. With an improved reputation, we will aim to promote voluntary compliance, and focus our other resources on enforcement efforts related to high-risk individuals and promoters of aggressive tax avoidance and evasion.

This book outlines the corporate structures in place that support the CRA’s five strategic priorities and overarching service transformation agenda. The five priorities include providing a seamless service experience, maintaining fairness in Canada’s tax and benefits administration, strengthening trust, transparency, and accountability, enabling innovation, and empowering our people to excel. We are striving to become a more agile and innovative organization capable of providing more client-centric services that respond to the needs and expectations of Canadians. This book contains corporate practices that play a key role in facilitating our objectives. 

Leadership of the Canada Revenue Agency

Organizational structure

General

Role of ministers

Individually, ministers are accountable to Parliament for the performance of their duties and functions. They are also responsible, collectively, for carrying out the government’s policies as established by Cabinet.

Portfolio Responsibilities and Support

On appointment, a minister will have the powers, duties and functions vested by statute. In exercising their responsibilities, ministers are supported by a deputy minister and departmental officials. They are also provided with resources for exempt staff, whom they personally appoint to assist them in their official responsibilities by providing political analysis, advice and support that the public service cannot provide.

As head of government, the Prime Minister has a responsibility for the effective operation of the whole of government and often has to answer in the House for the operation of all departments and agencies. This may mean that, in carrying out this overarching responsibility, the Prime Minister will be involved in matters within the responsibility of individual ministers.

Powers, Duties and Functions

The Prime Minister determines the broad organization and structure of the government in order to enable it to meet its objectives. The Prime Minister is responsible for allocating Ministers’ portfolios, establishing their mandates, clarifying the relationships among them and identifying the priorities for their portfolios through mandate letters.

Typically, departmental statutes provide the Minister with powers, duties and functions. However, most of the Ministers’ powers are exercised on the Ministers’ behalf by deputy ministers and departmental officials, who may in some cases act under formal delegations. Ministers are individually accountable to Parliament and the Prime Minister for their own actions and those of their department, including the actions of all officials under their management and direction.

The Prime Minister may assign additional responsibilities to a minister, either through an Order in Council or as a result of a designation by the Prime Minister. Consequently, ministerial responsibilities can encompass a range of diverse activities, some based on statute, others on specific direction provided by the Prime Minister.

Access to Previous Government Papers

Generally, a newly elected Cabinet will have control over and access to government records.

There are some exceptions. There is a long-standing convention that ministers may not see Cabinet papers of former ministers of a different party. Nor can ministers see other papers containing the unpublished views or comments of their predecessors on advice submitted to them. The purpose of this convention is to avoid having a new government make political capital out of the deliberations of the former government.

However, the same is not true of documents protected by solicitor-client privilege that were prepared for the previous government. Legal advice given to employees, officers, or ministers under one administration is advice to the executive branch of government, not to that particular Minister or to a particularly constituted Cabinet.

Specific to the Minister of National Revenue

Delegations

Given the scope and complexity of the powers, duties and functions vested in Ministers, by practical necessity the majority are exercised on the Minister’s behalf by departmental officials pursuant to common law principles that have been codified in legislation or pursuant to express delegations of authority from the Minister.

Delegations provide the legal framework under which officers of the Canada Revenue Agency (CRA) can exercise, on behalf of the Minister, a wide variety of powers and duties. Existing delegations remain valid following a change in Ministers and are generally not reviewed after a new Minister is appointed.

The Minister of National Revenue has a number of powers under the CRA Act, Income Tax Act, and Excise Tax Act. Certain powers of a more sensitive nature are not delegated and are exercised personally by the Minister, such as the issuance of security certificates under the Charities Registration (Security Information) Act which revoke or deny registration of charities involved in supporting terrorism.

The powers that are delegated are part of the wide range of day-to-day activities carried out by CRA officials (such as requesting information, waiving or cancelling interest and penalties, conducting audits, or investigating frauds). Most powers can be delegated; however, neither the Minister nor the Commissioner can delegate any powers pertaining to regulation making authorities or the provision of reports and recommendations to the Governor in Council. The Financial Administration Act provides the legislative authority for the delegation of financial authority. Delegated authorities come into effect when the Minister or the deputy head signs the requisite documents. The documents, known as matrices, that were approved by a former Minister remain in effect until new matrices are signed. When a new Minister is appointed, the Agency must prepare new delegation matrices for signature within 90 days following the appointment.

The legislation permits the delegation of the Minister’s powers and duties to CRA officials through administrative delegation instruments. These instruments can take the form of a formal authorization document, memorandum, or letter. New instruments are usually needed when new legislation comes into effect or to reflect internal reorganizations/title changes. In most cases, program legislation provides the Commissioner of Revenue with the legal authority to sign delegation instruments.

Governance structure

The governance structure for the CRA, as set out in the Canada Revenue Agency Act (CRA Act), is unique in the Canadian government, comprising the Minister of National Revenue, the Board of Management, and the Commissioner. The Minister is responsible to Parliament for the CRA, the Commissioner is the Agency’s Chief Executive Officer and responsible for its day-to-day management and direction, and the Board of Management oversees the organization and administration of the Agency. 

Ministerial Support

In performing their duties and functions, the Minister of National Revenue is supported by the Commissioner, other CRA officials and the Taxpayer’s Ombudsman, in addition to their own political staff.

When Parliament is sitting, ministerial briefings are typically held weekly with the Commissioner and key Agency officials. Otherwise, the CRA is available to support the Minister and staff as required and regular contact occurs between the Minister’s Office and CRA staff who support the Minister’s Office, as well as the Minister’s Chief of Staff.

Accountability to Parliament

The Minister of National Revenue is accountable to Parliament for the operation of the CRA and matters relating to the collection of taxes and duties (set out in the Income Tax Act, the Excise Tax Act, and the Excise Act).

Ministers are regularly called to parliamentary committees to provide information about policy and spending priorities, and to discuss departmental performance and results. The Minister is supported in this capacity by members of their office, as well as CRA officials, including the Parliamentary and Cabinet Affairs Division in the Public Affairs Branch, which serves as the liaison office between the CRA and Parliament.

Confidentiality of taxpayer information (Section 241 of the Income Tax Act)

Taxpayer information is the subject of rigorous confidentiality provisions set out in tax statutes, such as the Income Tax Act and the Excise Tax Act. Taxpayer information should only be accessed, used, or shared for a purpose specifically authorized by the appropriate law, and on a need to know basis.

Members of Parliament and their staff may be approached by constituents with inquiries on a tax issue. Tax statutes require the written consent of a taxpayer before their information is provided by the CRA to a Member of Parliament. When claims of specific tax grievances are raised in the media or Parliament, only general replies may be provided with no references to the circumstances of the aggrieved taxpayer, even if the issue is misrepresented. This includes addressing information (or misinformation) already in the public domain.

When there is a question as to whether information is taxpayer information, it should be treated as taxpayer information that cannot be disclosed until confirmed otherwise by a CRA official. The CRA has put in place internal controls to safeguard taxpayer information, which is considered to be protected information.

Appointments

The Minister of National Revenue may be required to make recommendations to the Governor in Council on the appointment of the CRA’s Board of Management members as well as the Taxpayers’ Ombudsman.

Security practices and Considerations

Ministers must be aware that as public figures they are potential targets for cyber attacks and should exercise caution when using or accessing their Twitter accounts, Facebook or other social media and emails. Additionally, ministers have access to privileged and protected information and are obligated to ensure that they protect such information.

Bob Hamilton – Commissioner of Revenue and Chief Executive Officer

Christine Donoghue – Deputy Commissioner of Revenue

Governance at the Canada Revenue Agency

The Canada Revenue Agency’s (CRA) governance structure is unique within Canadian government, comprising a Minister, a Board of Management, a Commissioner, and a Taxpayers’ Ombudsman.

Minister of National Revenue

• Accountable to Parliament and the Prime Minister for the operation of the CRA and matters relating to the collection of taxes and duties (set out in the Income Tax Act, the Excise Tax Act, and the Excise Act)
• Powers relate to regulation-making and reporting to Parliament and Governor in Council
• Does not direct officials on interpreting tax law
• Member of Cabinet and Privy Councilor

Board of Management

• Accountable to the Minister of National Revenue (Minister)
• Consists of 15 Directors, include a Chair, the Commissioner (ex officio member), a Director nominated by each province and the territories, and two federally appointed Directors
• Oversees the organization, administration, and management of the CRA
• Provides oversight to the CRA’s internal audit and program evaluation planning and reporting
• Responsible for development of the CRA’s Corporate Business Plan
• Not involved in CRA operational activities
• Has no authority in the administration and enforcement of legislation, which includes the Income Tax Act and the Excise Tax Act, for which the CRA remains fully accountable to the Minister of National Revenue

Taxpayers’ Ombudsman

• Reports directly to the Minister and operates at arm's length from the CRA
• Mandated to improve service to taxpayers via a service complaint mechanism
• Upholds the 8 service rights of the 16 rights stated in the Taxpayer Bill of Rights

Commissioner of Revenue and Chief Executive Officer

• Accountable to the Minister and the Board of Management
• Responsible for the day-to-day management and direction of the CRA
• Ex-officio member of the Board of Management
• Advises the Minister on legislated authorities, duties, and functions

Deputy Commissioner

• Supports the Commissioner in all duties
• Responsible for exercising specific duties/functions assigned by the Commissioner
• Acts for the Commissioner in case of absence, incapacity, or vacancy

Board of Management role

• Oversees the organization and administration of the Canada Revenue Agency (CRA) and the management of its resources, services, property, personnel, and contracts
• Responsible for the development and approval of the Corporate Business Plan
• May advise the Minister of National Revenue on matters that relate to the general administration and enforcement of program legislation
• "Stewardship" role similar to that of Boards in Crown and private corporations
• Challenge function: members must satisfy themselves that the CRA is properly managing and exercising its authorities by reviewing quarterly performance reports, financial statements and dashboards
• Responsibility for day-to-day management rests with the Commissioner and his officials:
  • May not direct Commissioner or an employee in the exercise of statutory power/duty/function or the administration or enforcement of program legislation
  • Not authorized to receive personal/business information or information obtained under program legislation

The Chair

• Appointed by the Governor in Council (GIC) to serve "at pleasure" for a period of no more than five years that can only be renewed once
• Must preside at meetings of the Board of Management, that occur six times a year, of which four are in person

Suzanne Gouin – Chair, Board of Management

Cabinet Decision-Making

The Cabinet is the political forum where Ministers reach a consensus and decide on priorities and issues. It is the setting in which they bring political and strategic considerations to bear on proposed ministerial and governmental actions.

Basic Rules for Cabinet Business

Decision making is led by the Prime Minister. Through the Cabinet and its committees, the Prime Minister provides Ministers with the principal forum in which they can resolve different perspectives. The Prime Minister organizes Cabinet and Cabinet committee decision making, determines the agenda for Cabinet business and chooses committee chairpersons to act on his or her behalf. The Privy Council Office is the Cabinet’s secretariat and administers the Cabinet decision-making process on behalf of the Prime Minister.

Cabinet government works through a process of compromise and consensus building, which culminates in a Cabinet decision.

Consultation among the Ministers, departments and portfolios involved must precede the submission of a proposal to the Cabinet by the responsible Minister or Ministers. Ministers must also consult caucus early on policy and expenditure proposals.

Ministers have the right to seek their colleagues’ consideration of proposals that may impact their area of responsibility.

Confidences of the Queen’s Privy Council for Canada, more commonly referred to as "Cabinet confidences," must be appropriately safeguarded from unauthorized disclosure or other compromise.

Decision-Making Process and Procedures

Cabinet decision-making is guided by electoral commitments as well as by key statements of government policy and priorities. The Speech from the Throne, delivered by the Governor General at the beginning of each session of Parliament, outlines the government’s program for Parliament. As a reflection of the overall priorities of the government and the Prime Minister, the Speech provides a general policy framework for the upcoming parliamentary session.

The Minister of Finance presents the government’s annual budget which reflects the fiscal framework agreed to by the Cabinet. The President of the Treasury Board subsequently tables the Main Estimates.

These frameworks provide the overall direction of the government. They both shape and reflect the ongoing work of Cabinet committees.

The Cabinet process begins when an issue is raised by a Minister in the form of a Cabinet document or through general discussion at a Cabinet meeting. The supporting documents are normally circulated to all Ministers by the Privy Council Office before the issue is discussed at the appropriate Cabinet committee.

The Cabinet and Cabinet Committees

Cabinet committees are an extension of the Cabinet itself. The Prime Minister establishes both standing and temporary (or special purpose) committees, chooses their membership, prescribes their procedures and changes them as he or she sees fit. The Privy Council Office provides Ministers with information on the Prime Minister’s decisions regarding the structure and operations of Cabinet committees.

Committee chairpersons act for the Prime Minister with his or her authority, including setting the committee agenda. For the most part, decisions are taken by the appropriate committee, subject to confirmation by the Cabinet. This system settles as many questions as possible at the committee stage in order to lessen the workload of the Cabinet and to allow it to concentrate on priority issues and broad political concerns.

The Treasury Board is established by law as a committee of the Queen’s Privy Council for Canada, and many of its decisions have the force of law. It provides oversight of the government’s financial management and spending, as well as oversight on human resources issues. The Treasury Board may act as the Cabinet committee for the public service and expenditure management. The Board is the employer for the public service, and establishes policies and common standards for administrative, personnel, financial and organizational practices across government. It also controls the allocation of financial resources to departments and programs. The Treasury Board also fulfills the role of the Committee of Council in approving regulatory policies and regulations, and all Orders in Council, excluding appointments.

Orders in Council

Orders in Council (OICs) are legal instruments made by the Governor in Council pursuant to statutory authority (or, infrequently, royal prerogative). OICs address a wide range of administrative and legislative matters, from civil service staffing to capital punishment, and from the disposition of Aboriginal lands to the maintenance of the Parliamentary Library. Recommendations to the Governor in Council are signed by the responsible Minister. They take legal effect only when signed by the Governor General.

Program Branches

Appeals Branch

Assistant Commissioner, Cathy Hawara

Mandate

Delivers sound, timely, and impartial decisions and responses to resolve tax and Canada Pension Plan (CPP)/ Employment Insurance (EI) disputes, and provide taxpayer relief.

Core Responsibilities

Objections and appeals

• Provides impartial and consistent resolution of objections to (re)assessments or determinations related to income tax, Goods and Services Tax (GST) and Harmonized Sales Tax (HST), charities and benefits. Works closely with the Department of Justice as appeals cases move through the court system.

Tax and charities litigation

• Manages high risk and complex referrals on objections, assists the Department of Justice in the conduct of high risk and complex appeals that are before the courts, and conducts processes to reduce risk exposure and inconsistent development of the law.

CPP and EI appeals

• Issues ministerial decisions on appeals related to rulings and assessments on the pensionability and insurability of a worker’s employment under the CPP and the EI Act. Coordinates subsequent appeals to the courts.

Taxpayer relief

• Administers legislation that enables the CRA to assist taxpayers by relieving interest and penalties where they have been unable to meet their tax obligations because of circumstances beyond their control.

Assessment, Benefit, and Service Branch (ABSB)

Assistant Commissioner, Frank Vermaeten
Deputy Assistant Commissioner, Gillian Pranke

Mandate

Processes tax returns and payments for individuals, businesses, and trusts; administers federal and provincial/territorial benefit and credit programs; and leverages technology to provide better service to taxpayers and benefit recipients.

Core Responsibilities

Processing returns and payments

Processing individual, corporate and trust income tax returns, and assessing taxes owing.

Benefit programs

Ensures that Canadians get the benefits to which they are entitled, administers federal and provincial/territorial benefit and credit programs, and provides electronic income verification services with partner organizations.

Telephone enquiries

• The Canada Revenue Agency (CRA) has individual and benefits enquiries call centres and business enquiries call centres. Telephone network includes a 24-hour automated Interactive Voice Response solution that offers callers a variety of self-serve options, as well as the option of speaking to a CRA agent. In 2018-2019, over 10.6 million calls were answered by CRA agents.

Digital services

• Provides convenient, user-friendly, and secure electronic services to individuals, businesses, and their representatives, such as CRA’s website, My Account, and My Business Account.

Outreach

• Coordinates outreach efforts to assist vulnerable populations such as newcomers to Canada, Indigenous peoples, and persons with disabilities in filing their income tax returns and ensuring they receive the benefits to which they are entitled.

Collections and Verification Branch (CVB)

Assistant Commissioner, Michael Snaauw
Deputy Assistant Commissioner, Tammy Branch

Mandate

Protects the integrity and fairness of Canada’s tax system for all Canadians by delivering national validation, compliance, and collections programs that promote voluntary registration, accurate and timely filing, and payment remittance.

Core Responsibilities

Collections

• Collects debts owed for all taxes, levies, duties, and other accounts administered by the Agency, including amounts withheld in trust on behalf of the Crown, and those owed to the federal government on behalf of other departments (e.g., Employment Insurance [EI] and Canada Pension Plan (CPP) overpayments, Canada student loans, and Custom duties).

Individual and business compliance

• Promotes, identifies, and enforces filing compliance for individuals, corporations and trusts, and the withholding and remittance of source deduction obligations for payroll and non-residents.
• Verifies information contained in returns and reassessment requests, performs pre- and post-assessment as well as benefit reviews, fosters compliance through the use of third party information, conducts reviews of all Goods and Services Tax (GST) and Harmonized Sales Tax (HST) registrations, and updates business identification information.
• Delivers national and regional projects to address non-compliance and the underground economy.

Compliance Programs Branch (CPB)

Assistant Commissioner, Ted Gallivan

Mandate

Promotes voluntary compliance and identifies and addresses domestic non compliance with tax laws, and combats the most aggressive cases of tax avoidance and tax evasion.

Core Responsibilities

Income Tax, GST and HST

• Focuses on the 1.2 million small and medium businesses in Canada with less than $50 million in annual revenue.
• Leads an educational approach by assisting taxpayers with their obligations.
• Uses risk assessment and behavioural techniques to identify the most common mistakes and issues to encourage compliance with tax laws.
• Uses audit and examination activities in situations of non-compliance.
• Identified 90,000 cases of potential non-compliance in 2018-2019, representing almost $2.3 billion in gross tax.

Scientific research and experimental development (SR&ED)

• Administers the SR&ED program, a federal tax incentive to encourage Canadian businesses to conduct research and development in Canada.

International and large business, high net worth compliance and aggressive tax planning

• Focuses on the 28,000 large businesses and multinational enterprises in Canada.
• Addresses non-compliance for large business, international tax, and abusive tax avoidance.
• Risk assesses 100% of large business corporate tax returns each year
• Increasingly uses non-traditional data sources, such as international electronic funds transfers, offshore tax informants, foreign reporting forms and third-party data received from treaty partners to select cases for potential non-compliance.
• Focuses on non-compliance involving unreported foreign income and assets with respect to high net worth taxpayers and offshore jurisdictions of concern.
• Identified 2,000 cases of potential non-compliance in 2018-2019 representing over $8.6 billion in gross tax.

Criminal investigations

• Ensures that the most egregious cases of tax evasion are investigated and, where appropriate, referred to the Public Prosecution Service of Canada for criminal prosecution.

Legislative Policy and Regulatory Affairs Branch (LPRAB)

Assistant Commissioner, Geoff Trueman

Mandate

Responsible for interpreting tax legislation and is the principal Canada Revenue Agency (CRA) liaison with the Department of Finance and with provincial and territorial finance departments in matters pertaining to legislative change.

Core Responsibilities

Legislative/policy program

• Manages legislative and regulatory processes within the CRA; resolves associated administrative policy and application issues with respect to federal, provincial and territorial tax matters. Manages CRA’s income tax and GST/HST Remission Programs.

Rulings and interpretations

• Provides rulings, interpretations, and technical publications on income tax, Goods and Services Tax (GST)/ Harmonized Sales Tax (HST), commodity tax, Canada Pension Plan, Employment Insurance legislation, regulations, and international treaties. Also provides assistance to internal stakeholders on interpretation of tax legislation.

Excise licensing, registration and compliance

• Licenses and registers entities carrying on business in specific commodities (e.g., cannabis, fuel, tobacco and alcohol), ensures compliance with excise tax laws through monitoring and responsible enforcement, and provides support to federal and provincial policing agencies. Also administers the new Fuel Charge program under the Greenhouse Gas Pollution Pricing Act.

Registered plans

• Administers Canada’s deferred income and savings plan regime. Provides a national registration program, actuarial services, an audit program, enquiries services as well as information, education and outreach activities to ensure compliance with the Income Tax Act and Regulations.

Registered charities and other qualified donees

• Reviews and renders decisions on applications for registered status as a charity or other qualified donee, helps charities and qualified donees voluntarily comply with their obligations, and ensures compliance with statutory and common law requirements through monitoring and responsible enforcement.

International engagement

• Focal point for the CRA’s international engagement activities, including coordinating the CRA’s involvement in programs of the Organisation for Economic Co-operation and Development and other international organisations, tax treaty issues, and capacity building initiatives.

Corporate branches

Audit, Evaluation, and Risk Branch (AERB)

Assistant Commissioner and Chief Audit Executive, Brian Philbin

Mandate

Supports the achievement of the CRA’s strategic goals by providing independent and objective information, advice, and assurance on the soundness of the CRA management framework and on the effectiveness, efficiency, and economy of its strategies, programs, and practices. The branch ensures that the CRA has successfully embedded a holistic approach to managing risk and fosters a working culture that values responsible risk taking and continuous improvement.

Core Responsibilities

Internal audit – Assurance

• Conducts internal audits of CRA programs and corporate functions, focusing on improving the overall efficiency, effectiveness and risk management of the CRA’s operations.

Program evaluation

• Provides senior management with periodic, independent, and in-depth assessments of CRA program effectiveness and administration.

Enterprise risk management

• Provides a sound framework for the management of risk at the enterprise level and supports the development of risk management capacity and capabilities throughout the CRA.

Professional practices and data analysis

• Develops policies, procedures and data analytics reports to guide AERB activities and ensures a high level of quality and adherence to professional standards in the delivery of the internal audit, evaluation, and enterprise risk management functions.

External audit liaison

• Works with CRA senior management and external assurance providers to ensure that the CRA's performance in delivering its mandate is reported fairly and accurately in reports and that the CRA responds fully and appropriately to recommendations for improvement.

Internal disclosures

• Provides CRA employees a secure and confidential process for disclosing serious wrongdoing in the workplace, as well as protection from acts of reprisal in respect of the Public Servants Disclosure Protection Act.

Finance and Administration Branch (FAB)

Assistant Commissioner and Chief Financial Officer, Janique Caron

Deputy Assistant Commissioner and Agency Comptroller, Hugo Pagé

Mandate

Facilitates the delivery of CRA programs and services at the national level by providing sound advice, products, and services in financial administration, resource management, security, internal affairs, administration, and real property.

Core Responsibilities

Financial administration

• Responsible for the accounting and reporting of CRA’s operational revenues and expenses as well as tax-related revenues, expenses, assets and liabilities administered on behalf of federal, provincial, and territorial governments. Develops financial management policies, manages financial systems and assesses internal control over financial reporting.

Resource management

• Establishes and manages the framework for stewardship of CRA financial resources.

Financial management advisory services

• Delivers client-centric, strategic, consistent, and timely financial management advice, analysis, and services to CRA branches, executive offices, and regional operations to help them make informed decisions in support of the effective delivery of CRA programs and services.

Security and internal affairs

• Responsible for building, maintaining, and implementing a security program that supports CRA programs, services, and priorities.

Administration

• Responsible for procurement, material management, logistics, and administrative services, such as mail services, records management, and forms distribution across the CRA.

Real property

• Corporate owner, investor, and the functional authority for the CRA real property portfolio and programs, including the provision of accommodation services for the CRA.

Human Resources Branch (HRB)

Assistant Commissioner and Chief Human Resources Officer, Dan Couture

Deputy Assistant Commissioner, Ann Marie Hume

Mandate

Enables effective people management by providing programs and services that support workforce and workplace excellence while sustaining a culture of integrity.

Core Responsibilities

Legislative accountabilities

• Legislative guardian of the Canada Revenue Agency Act (CRA Act) and other federal statutes that have implications for employees and human resource management, including: Federal Public Sector Labour Relations Act; Canada Labour Code, Part II; Public Service Employee Act, Part VII; Official Languages Act; and Employment Equity Act. Supports the Agency in exercising its unique employer authorities, which go beyond those normally performed by other government departments and agencies.

Workforce management

• Through the development of the annual Agency Workforce Plan, engages in strategic workforce planning to ensure that the CRA has the workforce needed to meet its current and future business deliverables.

Acquiring and developing talent

• Develops and implements new or revised classification standards, policies, systems, monitoring, training, and redress mechanisms related to classification. Maintains a modern staffing and recruitment program, and develops learning strategies and solutions to provide opportunities for growth within the organization.

Retaining and mobilizing talent

• Develops and implements a number of programs that support workplace well-being and contribute to CRA’s goal of a healthy and respectful workplace (e.g., onboarding, recognition, early intervention and return to work, Employee Assistance Program, and Discrimination and Harassment Centre of Expertise).

Collective agreements

• Administers collective agreements, including compensation, collective bargaining, labour relations policy instruments, union-management relations, strike contingency planning and reporting, and workforce adjustment.

CRA’s executive community

• Develops and implements strategies to sustain CRA’s executive community.

Information Technology Branch (ITB)

Assistant Commissioner and Chief Information Officer, Annette Butikofer

Deputy Assistant Commissionner, Santo Scarfo

Mandate

Develops and maintains information technology (IT)/information management systems to enable program delivery at the CRA, maintains systems security (including cyber security), and provides client computing and other IT solutions to the Canada Border Services Agency.

Core Responsibilities

IT operations and maintenance

• Ongoing operation, maintenance and development of the national lines of business application systems for all program and administrative business lines supported by the CRA.
• Ongoing operation, acquisition, maintenance, and evolution of the CRA’s national distributed computing environment and network. Oversight of the delivery of the CRA IT infrastructure services and network provided by Shared Services Canada.

IT security

• Manages the security and integrity of the CRA’s digital and online information, including the development, maintenance, and use of secure networks and systems.

IT strategy and direction

• Responsible for the development of the annual CRA IT Strategic Plan used to guide IT investments in the CRA, including the research and development related to strategic directions and trends in information and network technologies.
• Provides clear and consistent direction, guidance, and authority over IT initiatives and activities performed in other branches of the Agency.
• Maintains the Information Technology Policy Framework for the CRA.

Management of IT resources

• Responsible stewardship of government and Agency IT investment.
• Develops an annual IT Workforce Plan in support of recruitment, staffing, training and learning needs for ITB employees.

Legal Services

Assistant Deputy Minister of the Department of Justice Tax Law Services Portfolio, Shalene Curtis-Micallef

Mandate

Advises the CRA on the legal parameters and risks associated with the development and delivery of its programs and in its interactions with stakeholders and clients.

Core Responsibilities

Advisory

• The Department of Justice Canada provides legal advice on a wide array of topics such as tax avoidance, international tax, charities, tax enforcement, collections, access to information and privacy, human resources, contracting, interpretation and application of the CRA Act, confidentiality of taxpayer information, CRA Board of Management, Taxpayers’ Ombudsman, and civil litigation where the CRA is being sued (torts).

Litigation

• Litigation is conducted by the Department of Justice Canada in all income and excise tax (including GST/HST) assessment matters, civil litigation (torts), requirements for information, judicial review of administrative decisions, and EI and CPP appeals to the courts.

Collections litigation

• The Department of Justice Canada also conducts litigation related to CRA’s collections activities. This unique area of the law is at the crossroads of debtor-creditor/securities law, corporate law, property law, bankruptcy and insolvency law, and administrative law.

Public Affairs Branch (PAB)

Assistant Commissioner and Chief Privacy Officer, Maxime Guénette

Mandate

Provides public affairs leadership, advice, support, and oversight to the CRA and its clients in a variety of functions. These include external and internal communications, issues management, brand management, digital communications, ministerial services, parliamentary and cabinet affairs, public opinion research, consultations and stakeholder engagement, access to information and privacy, and publishing.

Core Responsibilities

Access to information and privacy

• Fulfills the CRA’s legislative requirements relating to the Access to Information Act and Privacy Act, as well as related regulations and policies. Supports the CRA’s Chief Privacy Officer by overseeing privacy and related risks, as well as the proper management and protection of personal information under the CRA’s control.

Communications services and products

• Provides strategic communication advice and services for both internal and external audiences, marketing, advertising, and creative services, as well as the management of the CRA’s social media channels. These services also include public opinion research and public environment analyses, advisory services related to public engagement, and consultation.

Ministerial services and operations

• Provides strategic advice and support services to the Minister related to parliamentary and cabinet affairs, the management and co-ordination of ministerial events and speeches, ministerial and executive correspondence, and media relations and media monitoring, as well as issues management and coordination. Also ensures liaison with regional communications teams.

Digital design and production

• Provides strategic direction and oversight for all Agency publishing, including the research, planning, design, development, testing, quality assurance, delivery, and performance of the Canada.ca web presence, intranet and digital workspace, forms and publications, correspondence, and multiple formats. Also ensures that all published content is user-centric, accessible, cost-effective, efficient, and meets the needs of Canadians, as well as CRA and Government of Canada standards.

Service, Innovation and Integration Branch (SIIB)

Assistant Commissioner, Chief Service Officer and Chief Data Officer, Mireille Laroche

Mandate

Ensures rigour in the Agency’s reporting to Parliament and the provinces and territories, informs and influences the direction of the Agency’s strategic and operational agenda, leads cross-cutting Agency projects and initiatives, maximizes the Agency’s ability to use and leverage data and information, and leverages feedback the Agency receives from taxpayers, to promote client-centric design and program.

Core Responsibilities

Horizontality

• Promotes Agency-wide approaches to issues that have cross-functional impacts.
• Provides strategic leadership, direction, oversight, integration, and reporting on Agency-wide initiatives and change projects.

Service design and development

• Promotes client-centric programs and service design, and a culture of service across the CRA.
• Administers the Service Complaints and the Problem Resolution Programs.
• The official point of contact between the Office of the Taxpayers’ Ombudsman (OTO) and the CRA for the coordination of OTO’s requests.

Strategic planning and Agency reporting

• Supports strategic planning at Deputy Minister Committees, Agency Management Committees, and the Board of Management.
• Leads strategic thinking and planning at the Agency.
• Prepares all annual planning and reporting including the Corporate Business Plan, Departmental Plan and Departmental Results Report.
• Provides expertise and advice on performance measures.
• Leads the Centres of Expertise for GBA+ and Sustainable Development.

Relationship management

• Accountable for the tax collection agreements and relationships related to the tax and benefit programs the CRA delivers on behalf of provincial, territorial, and First Nations governments.

Data and analytics

• Leads the development and implementation of the CRA’s data and analytics strategy.
• Authoritative source of statistics to the CRA, the media, and other government departments, Agency Centre of Expertise for analytics, and data governance.
• Serves as a clearing house for data and provides direction for stewardship of data.

Regions

The CRA has five regional operations supporting the Agency in delivering its operational programs: Atlantic, Quebec, Ontario, Prairie and Pacific. Similar to the program and corporate branches at headquarters, each region is led by an Assistant Commissioner. Regional operations are reflective of Tax Services Office (TSOs), Tax Centres (TCs) and National Verification and Collections Centres (NVCCs). TSOs handle more complex audit, collection and related files, which generally involve potential face-to-face interactions with taxpayers or their representatives. TCs are tax return processing centres, and NVCCs handle non-complex, non-face-to-face files in the areas of collections, validation, and verification.

Atlantic Region

Assistant Commissioner, Susan Chambers

The Atlantic Region consists of four provincial jurisdictions: New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. The Atlantic Region employs approximately 4,000 CRA employees, making CRA one of the largest employers in the region.

Quebec Region

Assistant Commissioner, Louis Beauséjour

The Quebec Region covers the entire Province of Quebec. Given the double taxation system, the CRA maintains a close partnership with Revenu Québec, thus allowing for concerted management of the main issues faced by both administrations. The Quebec Region employs approximately 5,600 employees. With a population of approximately 8.5 million, Quebec represents the second largest region, behind Ontario.

Ontario Region

Assistant Commissioner, Maria Mavroyannis

The Ontario Region covers the largest geographic region (in terms of land size and population) in the CRA, servicing the province of Ontario as well as the territory of Nunavut. The Ontario Region employs approximately 13,000 employees and provides tax and benefit administration to a population of more than 14 million people, making it the largest region.

Prairie Region

Assistant Commissioner, Ross Ermel

The Prairie Region covers Manitoba, Saskatchewan, Alberta, and the Northwest Territories. The Prairie Region employs approximately 6,900 CRA employees.

Pacific Region

Assistant Commissioner, Ross Ermel

The Pacific Region covers the province of British Columbia and the Yukon. The Pacific Region employs approximately 4,900 CRA employees.

Taxpayers’ Ombudsman

Mandate of the Taxpayers’ Ombudsman

The Office of the Taxpayers' Ombudsman (OTO) was established by Order in Council P.C. 2007 08 to enhance the Canada Revenue Agency's (CRA) accountability in its service to, and treatment of, taxpayers and benefit recipients. The current Taxpayers’ Ombudsman is Ms. Sherra Profit.

The mandate of the Taxpayers’ Ombudsman is to assist, advise, and inform the Minister about any matter relating to services provided to a taxpayer by the CRA. The Taxpayers' Ombudsman fulfills this mandate by upholding 8 of the 16 taxpayer service rights outlined in the Taxpayer Bill of Rights by providing an independent and impartial review of unresolved complaints from taxpayers about the service or treatment they have received from the CRA. The Ombudsman does so, by identifying and reviewing systemic and emerging issues related to service matters that impact negatively on taxpayers, facilitating access by taxpayers to redress mechanisms within the Agency to address service matters, and providing information to taxpayers about the mandate of the Ombudsman.

The full Taxpayers’ Bill of Rights with all 16 rights has been provided to you in a separate document. Of those 16, the following 8 service rights are those upheld by the Ombudsman:

• You have the right to be treated professionally, courteously, and fairly.
• You have the right to complete, accurate, clear and timely information.
• You have the right to lodge a service complaint and to be provided with an explanation of our findings.
• You have the right to have the costs of compliance taken into account when administering tax legislation.
• You have the right to expect us to be accountable.
• You have the right to expect us to publish our service standards and report annually.
• You have the right to expect us to warn you about questionable tax schemes in a timely manner.
• You have the right to be represented by a person of your choice.

The Taxpayers’ Ombudsman will generally review a complaint only after all the CRA's internal complaint resolution mechanisms have been exhausted. There are certain types of complaints that the Ombudsman cannot review, such as complaints that are not service-related or where matters are before the courts.

The Ombudsman Liaison Office

The Ombudsman Liaison Office (OLO) is located in the Service, Innovation and Integration Branch, serving as the designated point of contact in the CRA for the OTO for service-related issues. OLO facilitates the OTO’s activities in the Agency, and provides assistance to the Ombudsman to fulfill their mandate in a timely manner.

Office of the Taxpayers’ Ombudsman Reports

The OTO has published 11 annual reports, 12 special reports, and one observation paper since 2008.

The Ombudsman is preparing to finalize or has already finalized the following reports/papers for this fiscal year:

Appointment of New Ombudsman

Ms. Profit is serving a five-year, non-renewable term as Taxpayer’s Ombudman, which will end in July 2020. The Agency will work with the Privy Council Office and your office, in early 2020, on the process to identify and for the Governor in Council to appoint a new Ombudsman prior to the expiry of Ms Profit’s term.

Sherra Profit, Taxpayers’ Ombudsman

Taxpayer Bill of Rights

The Taxpayer Bill of Rights was launched in 2007 to demonstrate the Government of Canada’s commitment to fairness for taxpayers. It is a set of sixteen rights confirming that the Canada Revenue Agency (CRA) will serve taxpayers with a high degree of accuracy, professionalism, courteousness, and fairness. The Taxpayer Bill of Rights also includes the CRA Commitment to Small Business, a five-part statement through which the CRA pledges to create a competitive, and dynamic business environment in which Canadian businesses will thrive.

Commitment to Small Business

The Canada Revenue Agency is committed to:

1. Administering the tax system in a way that minimizes the costs of compliance for small businesses
2. Working with all governments to streamline service, minimize cost, and reduce the compliance burden
3. Providing service offerings that meet the needs of small businesses
4. Conducting outreach activities that help small businesses comply with the legislation we administer
5. Explaining how we conduct our business with small businesses

★ Of the 16 rights listed, the Taxpayers’ Ombudsman is responsible for upholding the eight starred service rights

OAG Performance Audits – Recent and Upcoming

The Canada Revenue Agency (CRA) has been the subject of a recent performance audit by the Office of the Auditor General (OAG) relating to student financial assistance. The most recent CRA-related audit tabled in Parliament was the Taxation of e-commerce, in May 2019.

Considerations:

The CRA is routinely the subject of OAG performance audits regarding our operational capabilities and program delivery. Media and public interest tends to range from low to moderate. The CRA is generally able to respond positively to recommendations where resource capacity permits us to do so.

Taxation of e-commerce

This audit was tabled in the 2019 Spring Reports of the Auditor General of Canada in May 2019. The objective of the audit was to determine whether the CRA, the Canada Border Services Agency, and the Department of Finance Canada ensured that the tax system was neutral and that the GST/HST tax base was protected. The audit report contains two recommendations for the CRA. The CRA agreed with the recommendations and submitted responses to address the identified issues.

The OAG concluded that the CRA was limited by its legislative authority and could not ensure either that the sales tax system was applied in a neutral way or that the GST/HST tax base was protected with regards to cross border e-commerce. The OAG found that, in situations where the CRA had authority, the Agency conducted a limited amount of compliance activities.

Student Financial Assistance

The objective of this audit is to determine whether Employment and Social Development Canada (ESDC) and the CRA have managed financial assistance for post-secondary education and the risks to the public treasury in an efficient manner, while facilitating access for Canadians to colleges and universities. This audit also reviewed the Financial Consumer Agency of Canada to ensure they worked with partners to strengthen student financial literacy.

Background:

The Office of the OAG serves Parliament by providing it with objective, fact-based information and expert advice on government programs and activities, gathered through audits. Parliamentarians use OAG reports to oversee government activities and hold the federal government to account for its handling of public funds.

The Auditor General of Canada is an Officer of Parliament who carries out work on behalf of Parliament, and who is accountable to Parliament.

The Office of the Auditor General audits:

• the federal government, including some 100 departments and agencies, ranging from small boards to large, complex organizations;
• some 40 Crown corporations, such as the Canadian Broadcasting Corporation and the Royal Canadian Mint; and
• the governments of Nunavut, the Yukon, the Northwest Territories, and some 20 territorial corporations and agencies.

The OAG conducts between 25 and 30 legislative audits each year. The three main types of audits include financial, performance, and special examinations. Topics are selected by the OAG through risk analysis to identify areas that are most significant and relevant to Parliament. The OAG also receives requests to audit from individual citizens, groups, members of Parliament, and senators. The ultimate decision about what to audit rests with the Auditor General.

Corporate Documents

Corporate Business Plan

The Corporate Business Plan (CBP) is the primary corporate planning document used by the Canada Revenue Agency (CRA) to communicate its strategic agenda over a three-year planning period. The Summary of the CBP is publicly available on Canada.ca.

Currently, the CBP focuses on the following five strategic priorities:

1. Providing a seamless service experience
2. Maintaining fairness in Canada’s tax and benefits administration
3. Strengthening trust, transparency, and accountability
4. Enabling innovation
5. Empowering our people to excel

Background

The development of the CBP is the responsibility of the CRA's Board of Management and is approved by the Treasury Board of Canada pursuant to the requirements of the Canada Revenue Agency Act. 

The CRA is also responsible for the development of a similar planning document under the requirements of the Financial Administration Act. This related document, the Departmental Plan, is tabled in Parliament by the President of the Treasury Board of Canada. The Departmental Plan contains the same information concerning CRA priorities as in the Summary. Both the Departmental Plan and the Summary are almost identical to the Corporate Business Plan, with each fulfilling a particular statutory requirement.

Current status

The Summary of the Corporate Business Plan 2019-2020 with perspectives to 2021-22 was published and a copy accompanies your briefing binder. The CBP 2020-2021 is currently under development.  

Departmental Results Report

The Canada Revenue Agency (CRA) Departmental Results Report is the primary reporting document used by the CRA to communicate its results to Parliament and Canadians, and is publicly available on Canada.ca.

Background

The Financial Administration Act requires all federal departments and agencies to annually present a Departmental Results Report to the President of the Treasury Board of Canada for tabling in Parliament.

Current status

The Departmental Results Report for the period ending March 31, 2019, is expected to be tabled in Parliament in December 2019 or January 2020, and is expected to be due to the Treasury Board Secretariat in early December 2019.

The report includes a Minister’s message. We expect to seek your views on the message and your approval by December 1, 2019.

Expenditure Management

The Federal Budget outlines the government’s spending and priorities for the coming years and is a key planning document.

• Summarizes the fiscal outlook and announces tax changes, new or enhanced programs.
• Does not provide parliamentary expenditure authority.
• No specific timing requirement for the tabling of a Budget (usually in February or March).

The Estimates provide information on the resources required to deliver programs to Canadians and supports the voted amounts included in an appropriation act. Every dollar that appears in an appropriation act must first be approved by Treasury Board (TB).

• The Main Estimates are tabled by March 1 and address the initial budget.
• Supplementary Estimates are adjustments throughout the year (generally tabled in June, December, and March).

The Main Estimates present the government’s spending plans for each government organization for the coming year. They contain both statutory programs (included for information purposes only) and appropriations which must be authorized annually by Parliament^{Footnote 1}. The Commissioner may be called upon to defend the CRA’s Main or Supplementary Estimates before the Standing Committee on Public Accounts. The Minister may be invited and choose to attend. Ministers cannot be summoned to appear, and cannot be forced to answer questions or reveal information that would threaten national security or breach Cabinet secrecy.

• As of the 2019-20 Main Estimates, the government has presented Parliament with planned budgetary expenditure estimates totaling $299.6B. Of this amount, $4.5B (or 1.5%) has been allocated to the CRA.

Timing is such that, historically, the Main Estimates do not include new spending initiatives announced in the Federal Budget. Funding for these initiatives must first receive support through a TB submission, and then are included in one of the Supplementary Estimates or in the following year’s Main Estimates.

As part of a two-year pilot project, the House of Commons approved a change allowing the 2018-19 and 2019-20 Main Estimates to be tabled in Parliament as late as April 16 instead of March 1.

As part of this pilot, funding for new spending initiatives announced in the 2018 and 2019 Federal Budgets were included in Budget Implementation votes and released for use by departments following approval of the associated TB submissions. The intent is to allow for timelier implementation of federal budget announcements.

• Budget 2019 provided the CRA with up to $60.9M in additional funding for 2019-20, which covers seven budget measures. As of August 2019, the CRA has obtained funding for the implementation and administration of three of these measures, representing 78% of the earmarked amount^{Footnote 2}, related to service excellence and fairness in Canada’s tax system.

Each fall, the government tables the Public Accounts of Canada, to account for each organization’s spending compared to its approved authorities in the previous fiscal year. These also include the government’s consolidated financial statements for that same period.

As an Agency, the CRA benefits from a two-year appropriation (i.e., funds voted in one year can be spent over two fiscal years). This two‐year spending authority enables the CRA to be more flexible and strategic in its use of public funds.

CRA Budget

2019–20 Main Estimates

$4.5B budget, of which 21.5% (or $967.4M) is funded from statutory authorities and 78.5% (or $3.5B) from voted authorities.

Authorities

In addition to its statutory authorities, the CRA has two annually voted appropriations (commonly referred to as "votes"):

Vote 1 – Operating (covering the Agency's base operations, including salaries (77%) and operating expenditures such as accommodations, supplies, postage, training, travel, legal and IT services, etc.).

Vote 5 – Capital (covering the acquisition or creation of mainly IT assets expected to exceed $10,000).

In 2019–20, the CRA’s Main Estimates also included a number of budget implementation votes for new spending initiatives announced in the 2019 Federal Budget.

In addition to the $4.5B, the 2019-20 Main Estimates include $363.8M in revenues to cover costs associated with support the CRA provides to Employment and Social Development Canada in administering the Canada Pension Plan and Employment Insurance legislation.

Core responsibilities and programs

The CRA’s budget supports the delivery of three core responsibilities – Tax, Benefits, and the Taxpayers’ Ombudsman. These in turn are supported by internal services (finance, human resources, information technology, real property, etc.).

Budgets are allocated to functional branches which in turn allocate the funding to programs across headquarters and in the regions based on negotiated work plans. The CRA has twenty-three externally reported programs, of which eleven are under Tax, one under Benefits, one under the Taxpayers’ Ombudsman, and ten under internal services.

Changes in CRA budget levels

Changes in the CRA’s voted authorities over the last five years are primarily attributable to incremental funding for federal budget and policy measures announced by the Minister of Finance, transfers from Public Services and Procurement Canada for accommodation and real property services, as well as wage settlements. The fluctuations under the capital vote are primarily the result of the transfer of operating resources in order to address changes in the nature of funding required to carry out major project investments approved through the CRA’s annual Strategic Investment Plan.

• In-year changes to the CRA’s voted authorities are largely attributable to the carry forward of funds from the prior year, the reimbursement of paylist requirements^{Footnote 3}, incremental funding to implement and administer measures announced in the federal budget, and wage settlement increases.

The decrease in statutory funding is primarily attributable to a reduction in disbursements to the provinces following the expiration of the Softwood Lumber Agreement and changes in employee benefit plan rates.  

Departmental forecast – 2019-20 departmental plan

Over the 2019-20 to 2021-22 planning period, the CRA’s appropriations show a slight reduction primarily as a result of planned decreases in funding received to implement and administer various measures announced in the federal budgets as well as the federal carbon pollution pricing system and the upgrade of the individual income tax processing system. Further reductions are associated with the reallocation of departmental resources as announced in the 2018 Federal Budget to improve the management of information technology within the Government of Canada and to support related cyber security measures.

Internal reallocation mechanisms

The CRA has a rigorous financial management regime and system of controls over planning and budgeting. This includes a number of internal reallocation mechanisms to ensure that the disbursement of resources is done prudently and effectively, and is aligned with the strategic direction and priorities of the Agency and the Government.

Most notably, this consists of bi-annual Resource Management Strategy Updates to evaluate and prioritize operational and emerging pressures against available financial flexibility; an Annual Resource Alignment Process to review, on a more structured basis, how allocations are aligned with Agency and Government priorities; and the annual preparation of the Strategic Investment Plan to facilitate the alignment between major investment decisions and corporate priorities, on a ten-year planning horizon.

Key impacts of recent budgets

Over the last five years the CRA has received incremental funding to implement and administer a number of federal budget and policy measures.

Using funding provided in federal budgets, the CRA’s compliance and collections activities have overall met or exceeded their revenue generation commitments.

CRA Partnerships

The Canada Revenue Agency (CRA) maintains partnerships with a wide range of government, not-for-profit, and private sector organizations to support the administration of the tax and benefit regime.

The CRA also engages key stakeholder groups to help advance its goals and priorities and to extend its influence and expertise. Stakeholder engagement includes interactions with specific clients, client representatives, and other organizations such as professional and civil society associations and groups. It excludes outreach efforts and regular communication efforts to support delivery or compliance. 

Federal

The most important federal partnership the CRA has is with the Department of Finance Canada, given its role in developing Government of Canada tax policy and legislation. The CRA administers this legislation and provides Finance Canada with input on proposed changes to that legislation.

The CRA also maintains working relationships with other central agencies. The CRA works closely with the Privy Council Office in carrying out the direction of the Government of Canada. We work with the Treasury Board Secretariat on Treasury Board submissions, the launch of new programs and the development of regulations. In addition, the CRA follows central agency guidance on collective agreement negotiations, external communications, and public opinion research. A separate note provides more detailed information on the role of central agencies in government.

The CRA supports the administration of Employment Insurance, Old Age Security, Guaranteed Income Supplement, the Canada Pension Plan, Registered Disability Savings Plan, and Canada Education Savings Plan programs with Employment and Social Development Canada and Service Canada.

The CRA is a partner in the National Routing System (led by Statistics Canada); receiving birth/death registration information from the provincial/territorial Vital Statistics Offices. The CRA also provides statistical services and tax data to Statistics Canada.

The CRA has partnerships with many departments (e.g., Elections Canada and Correctional Service Canada) to share information.

The CRA is supported in its work by Shared Services Canada, a centralized provider of information technology and other services (email, telecommunications) to government departments.

Provincial and territorial

The CRA partners with provincial and territorial ministries of finance in collecting tax, administering benefits, and sharing information. This includes individual and corporate income tax for nearly all provinces, harmonized sales tax in Ontario and the four Atlantic provinces, and sales and income tax for First Nations governments. Exceptions are Alberta, which administers its own corporate tax regime and Quebec, which administers its own individual and corporate tax regimes.

The CRA’s administration of provincial corporate and personal income taxes is governed by tax collection agreements signed by federal and provincial or territorial finance ministers. The basic administration of provincial or territorial tax and related benefit programs is free of charge. However, the provinces or territories may request enhanced services from the CRA, such as increased verification of tax credit claims, on a cost recovery basis.

International

While Finance Canada leads on policy issues in representing Canada internationally at various fora, the CRA collaborates with other tax jurisdictions at an administrative level. This collaboration promotes the exchange of knowledge and best practices, helps ensure effective and non-duplicative approaches to tax administration across borders, and supports efforts to strengthen tax administration capacity in developing countries. The CRA has developed a close working relationship with fellow tax administrators from the Internal Revenue Service (United States), Her Majesty's Revenue and Customs (United Kingdom), the Australian Taxation Office, and New Zealand’s Inland Revenue.

The CRA participates in the activities of several international organizations, including the following:

• Organization for Economic Co-Operation and Development (OECD);
• Global Forum on Transparency and Exchange of Information;
• Cercle de Réflexion et d’Échange des Dirigeants des Administrations fiscales;
• Inter-American Center of Tax Administrations; and
• Commonwealth Association of Tax Administrators.

The CRA Commissioner is the Vice-Chair of the OECD Forum on Tax Administration (FTA), and a sponsor of the Large Business and International Program and the Capacity Building Network. In addition to the Commissioner’s individual role, the Agency is also an active member of several operational groups such as the Joint International Taskforce on Shared Intelligence and Collaboration, and the Joint Chiefs of Global Tax Enforcement.

Civil society organizations (CSO)

CRA engages with CSOs as stakeholders to gather business intelligence and enlist support for Agency efforts to deliver its mandate. Working closely with stakeholders gives the CRA a more genuine understanding of their perspectives on key strategic issues, which may have an impact on their organizations as well as the CRA clients they serve. It also promotes openness and transparency in CRA decision making on policy and program development. The following represent some of the CSO’s that the CRA engages with on tax related issues:

• Association de planification fiscale et financière
• Canadian Bankers Association
• Canadian Chamber of Commerce
• Canadian Federation of Independent Business (CFIB)
• Canadian Life and Health Insurance Association
• Canadian Payroll Association
• Canadian Tax Foundation
• C.D. Howe Institute
• Chartered Professional Accountants of Canada (CPAC)
• Conference Board of Canada
• Conference for Advanced Life Underwriting
• Efile Association of Canada
• Imagine Canada
• International Fiscal Association Canada
• Joint Committee on Taxation of the Canadian Bar Association and Chartered Professional Accountants of Canada
• Organizations and volunteers for CRA’s Community Volunteer Income Tax Program
• Society of Trust and Estate Practitioners Canada
• Tax Executives Institute
• Tax-filer Empowerment Canada

In 2014, the CRA and CPAC signed a framework agreement to enhance collaboration, enhance CRA services, and ensure a well-run tax system in Canada. The following were identified as potential areas for collaboration: service, compliance, tax administration, scientific research and experimental development, commodity tax, red tape reduction, and training.

The CRA meets twice a year with CFIB through the Small Business Consultation Forum. This joint forum was launched in 2015 and provides the Agency with valuable feedback from the small and medium business community.

The CRA also has ongoing relationships with a variety of software development companies who produce tax preparation software that Canadians can use to file their taxes. The CRA certifies this software for use in time for the start of each tax filing season. In 2018, the CRA committed to working with associations to improve services for Canadians. The primary goal of this collaboration is to produce and promote innovative, secure, and convenient electronic tax filing services.

The CRA administers the Community Volunteer Income Tax Program across the country and in partnership with Revenu Québec in that province, where it is called the Income Tax Assistance – Volunteer Program. This program allows partner organizations to host tax preparation sessions for modest income taxpayers and those with simple tax situations. The CRA offers training, tax software, and telephone support to the volunteers.

Finally, the CRA has established strong channels of communication with several leading organizations in the charitable sector, which represent thousands of member charities. The CRA leverages these networks to help address specific regulatory challenges for charities and monitor developments in the sector.

Advisory committees

The Minister of National Revenue’s Underground Economy Advisory Committee, launched in November 2014, provides the Minister and the CRA with an industry perspective and feedback on the government’s ongoing efforts to combat the underground economy.

The Disability Advisory Committee, reinstated in 2017, offers advice and recommendations to the Minister of National Revenue and the Commissioner on CRA services, products, policies, issues, and initiatives related to the disability tax credit. The CRA is committed to consulting this committee before making administrative changes to the disability tax credit program.

The Offshore Compliance Advisory Committee (OCAC), created in April 2016 has as its focus offshore tax evasion and aggressive tax planning. OCAC provides advice, input and recommendations to the Minister of National Revenue and to the CRA on the Agency’s  administration, policies, procedures and priorities for offshore compliance.

The External Advisory Panel on Service, established in 2018, supports the CRA’s overall service transformation. Members share experiences and lessons learned, and provide advice on emerging trends, plans and practices in service design and delivery. Chaired by the Commissioner, the panel is comprised of senior leaders and experts from the public, private, and not-for-profit sectors with expertise in digital services, client-centric service design, delivery, and innovation.

The Advisory Committee on the Charitable Sector was established in March 2019 and is co chaired by the charitable sector and the CRA. It provides recommendations to the Minister of National Revenue and the Commissioner of the CRA on important and emerging issues facing registered charities and other qualified donees on an ongoing basis.

In recent years, changes in technology and in the ways that Canadians consume news have made it difficult for many news outlets to find and maintain financially sustainable business models. Budget 2019 announced an independent panel, the Journalism and Written Media Independent Panel of Experts. The Panel recommended the establishment of an Advisory Council, with members to be appointed to act as special advisers to the Minister of National Revenue. The Advisory Council will be responsible for making recommendations on whether an organization meets the requirements for qualified Canadian journalism organization (QCJO) status. The Advisory Council has yet to be established through an Order in Council.

Government 101

There are three central agencies in the Government of Canada: the Privy Council Office, the Treasury Board Secretariat, and the Department of Finance. These central agencies contribute to the successful formulation and implementation of government policies and programs. They oversee interdepartmental information sharing, consultation and co ordination. They also provide integrated advice and support to the Prime Minister (PM) and Cabinet on government-wide issues.

Privy Council Office

The Privy Council Office (PCO) reports directly to the PM and is sometimes called the PM’s department. Unlike the PM’s Office, the PCO is staffed with public servants who offer non-partisan services and advice. The PCO is headed by the Clerk of the Privy Council, who is also Secretary to the Cabinet and Head of the Public Service.

The PCO’s role in assisting the PM and Cabinet give it substantial influence. Departments must consider the advice of the PCO carefully because it generally reflects the wishes of the PM and/or Cabinet.

The PCO has three main roles:

1. Support to Cabinet

The PCO acts as the secretariat for Cabinet as a whole and the committees of Cabinet (except Treasury Board, which is supported by the Treasury Board Secretariat). The PCO arranges meetings, proposes and circulates agendas, distributes documents, provides advice to committee chairpersons, records Cabinet minutes and decisions, and transmits subsequent Cabinet decisions to departments.

The PCO works with departments on their proposals to Cabinet, called Memorandums to Cabinet, or MCs, challenging departmental submissions to ensure that they meet the information needs of Cabinet and that they are consistent with the government’s overall policy direction. The PCO makes sure that departments coordinate their efforts with respect to policy proposals or issues that cut across departments, ensuring that all interested ministers and their officials are given an opportunity to express their views.

2. Provide non-partisan advice to the PM

The PCO assists the PM in strategic policy planning, ensures coordination of the government’s policy objectives, and manages major issues. For example, the PCO assists the PM in writing the Speech from the Throne and works closely with the Department of Finance when it prepares the budget. The PCO provides policy advice in specific areas, including foreign affairs, defence, national security, and intergovernmental affairs, and any other policy issues of particular concern to the PM.

The PCO advises the PM on machinery-of-government issues, Governor-in-Council appointments and constitutional matters.

3. Link between the PM and the public service

As Head of the Public Service, the Clerk of the Privy Council is responsible to the PM for the overall performance and effective management of the public service. The Clerk advances the government’s public service management agenda, provides advice on the appointment of senior public service personnel, serves as the spokesperson for the public service, and prepares an annual report on the state of the public service.

Treasury Board Secretariat

The Treasury Board Secretariat (TBS) assists the Treasury Board, a Cabinet committee established by law, in fulfilling its responsibilities. The TBS is headed by the Secretary of the Treasury Board, who is a deputy minister. The TBS also includes the Office of the Comptroller General of Canada, which is responsible for providing government-wide direction and assistance on financial management and internal audit. In addition, the TBS provides advice to the Treasury Board in its formulation of policy pertaining to: human resources, employee compensation, service delivery, information management and information technology, official languages and asset and acquired services.

The Treasury Board is composed of ministers responsible for the management of government expenditure and human resources in the public service. It is comprised of the president of the Treasury Board and four other ministers appointed by the Prime Minister. It is the only permanent committee of Cabinet.

While the Department of Finance is responsible for establishing general policy on government revenues and expenditures, the Treasury Board oversees the management of the budget and credits. It also plays a coordinating role in the preparation of the budget.

Department of Finance

The Minister of Finance is responsible for the government's fiscal policy, including tax policy, and for analyzing the economic and fiscal impact of proposals by any Minister. The Department of Finance (Finance) assists the Minister in developing the government’s fiscal framework in which overall spending takes place. As the federal government’s leading source of socio-economic analysis and advice, it advises the Minister on economic trends, tax policy, financial sector policy, as well as international trade and finance, and federal-provincial fiscal arrangements.

Finance’s most prominent role is assisting the Minister in developing the annual budget. The budget is a statement of the government’s fiscal plan in light of its current and expected financial situation. It outlines the government’s projected revenues, incorporating any changes in taxation and spending, and announcing new spending plans. Through the budget process, the Minister of Finance establishes a fiscal framework within which the government's expenditure management system can operate effectively.

Finance is also active in a number of other areas such as assisting the Minister of Finance in:

• Developing tariff policy and legislation
• Managing federal borrowing on financial markets
• Administering major transfers of federal funds to the provinces and territories
• Representing Canada within international financial institutions and groups, such as the International Monetary Fund, the World Bank, and the World Trade Organization

Finance is a central actor in virtually all policy decisions, because the allocation of funds from the fiscal framework is almost always required to proceed with a policy initiative. Through close collaboration and consultation, Finance and TBS ensure the cohesion and effectiveness of the decision-making process. These two agencies, through the PCO, provide the PM and Cabinet committees with advice on policy, related funding issues and the economic impact of proposals before Cabinet.