Canada Revenue Agency Departmental Performance Report 2013-14
Section 3: Supplementary information
Agency Governance and the Board of Management
Members of the Board of Management (left to right)
Bottom Row: Margaret Melhorn, Andrew Treusch, Richard (Rick) Thorpe, Fauzia Lalani, Luce Samoisette
Top Row: Gordon Gillis, Richard J. Daw, James R. Nininger, Myles Bourke, Gerard J. Fitzpatrick, Raymond Desrochers, Robert (Bob) M. Manning, Norman G. Halldorson
The Board of Management of the CRA consists of 15 members appointed by the Governor in Council. They include the Chair, the Commissioner, a director nominated by each province, one director nominated by the territories, and two directors nominated by the federal government. Members of the Board bring a diverse business and community perspective from the private, public, and not-for-profit sectors to the work of the CRA. The Board is responsible for overseeing the organization and administration of the CRA and the management of its resources, services, property, personnel, and contracts. It undertakes its oversight role in cooperation with CRA management to ensure the CRA fosters sound management and service delivery.
Board priorities and accomplishments for 2013-2014
In support of the CRA during this reporting period, the Board continued to provide oversight in all areas for which it has statutory responsibilities, in line with the Board's priorities as stated in the CRA's Corporate Business Plan 2013-2014 to 2015-2016. Details on the Board's accomplishments in priority areas are provided below.
Board composition changed in 2013-2014. Ms. Susan J. McArthur's term as Chair of the Board ended on August 3, 2013. Ms. Fauzia Lalani became interim Chair until Mr. Richard (Rick) Thorpe was named Chair of the Board on October 3, 2013. The Board member from Ontario, Ms. Sylvie Tessier, left and processes are underway to replace her and to appoint a new member from British Columbia to fill the Chair's former position.
Strategic outlook
The Board oversaw the CRA's management of tax and benefit administration in 2013-2014 while remaining committed to the government-wide goal of optimizing resources. Each quarter, the Board received updates on fiscal rebalancing and transformation measures and their impact on the financial status and human resources of the CRA. Board members were kept fully informed of challenges in implementation and the best way to achieve the CRA's goals without undue delay and impact on operations and service to Canadians. The Board observed steady progress in implementing initiatives to reduce cost, improve efficiency, reduce red tape, and continually improve service to Canadians.
A key Board activity was providing direction on the development of the Corporate Business Plan and approving the final plan. Board members agreed to streamline work on the plan by using a common core structure, based on the CRA's spending architecture, for both Board and Treasury Board reporting.
In addition, the Board held a strategic planning meeting in June 2013, in which members gave guidance and direction to senior management on the CRA's integrated service, compliance, integrity and security strategy and the agenda for small and medium enterprises, with an emphasis on reducing red tape.
During the strategic planning meeting, the Clerk of the Privy Council was invited to speak to Board members about Blueprint 2020, the process to renew and build the public service of the future. Throughout 2013-2014, the Board continued to offer guidance and strategic advice to senior management about these efforts to improve the public service, and monitored employee engagement in the areas concerned.
As part of its strategic oversight of the CRA, the Board provided input to the Commissioner's performance assessment and performance agreement, approving areas under its oversight, and discussed other key senior management expectations and performance, to make sure they aligned with Board priorities and objectives.
Service to Canadians
Throughout 2013-2014, the Board continued to focus on the CRA's commitment to continually improve service to Canadians. The CRA Roadmap: Current Priorities for Service, Compliance and Integrity, which the Board approved in December 2013, clearly stated the CRA's objectives: improving service to make it easier to comply, making sure all taxpayers pay their share, and maintaining Canadians' trust.
The Board oversaw the evolution of the CRA's electronic service offerings and emphasized the ongoing need for reducing red tape, which the CRA discussed with small and medium enterprises and their representatives in a series of consultations.
Members drew on their collective experience in accounting, law, and business to provide management with an external perspective of potential benefits and challenges in the CRA's approaches to improve service and reduce red tape. The Board asked for and received updates throughout the fiscal year on service, including achievements in electronic services, and initiatives to reduce red tape.
Members also received updates on taxpayers' complaints, and the Board supported the further development of trends analysis. Other important briefings touching on service included reports on the activities of the Taxpayers' Ombudsman, and updates on the CRA's progress in administering personal information.
People and human resources management
In 2013-2014, the Board provided oversight of people management planning, as it was aligned more closely with government-wide directions, and ensured the continued streamlining of the CRA's human resources processes. Board members were updated on simplification measures such as disability management tools for managers, a new national service request management system, and the streamlining of executive performance management.
A Board priority in the fiscal period was ensuring the CRA has the appropriate workforce for the modern workplace. Members were active in guiding succession planning of CRA leadership. In addition, they gave direction on human resources initiatives including a robust recruitment and retention approach to address the CRA's workforce challenges, taking into account both demographics and future business needs.
The Board approved two strategic workforce plans, in June 2013 and March 2014, and supported their objectives: maintaining leadership capacity, meeting evolving business needs, and fostering employee health and wellness. The Board was shown how human resources priorities from Blueprint 2020 were being addressed, and it endorsed plans to review the competencies system to reduce red tape, to further improve the performance management process, and to simplify staffing.
The Board also continued to oversee personnel management through quarterly updates and discussions and by approving modifications to the CRA Policy on Terms and Conditions of Employment. As part of its support of a fair and healthy workplace, the Board received reports demonstrating the CRA's continued commitment to occupational health and safety, employment equity, and the respect of official languages.
Integrity and security
The Board continued to focus on measures to foster and promote integrity and security in the CRA; to prevent, monitor, detect, and manage security breaches; and to lessen the risk of fraud.
In 2013-2014, the Board approved the finalized CRA Integrity Framework, a reference tool for employees and a declaration of the CRA as an integrity-based organization.
The Board also approved the updated CRA Conflict of Interest Policy, a core instrument within the Integrity Framework. It reinforces the integrity of the CRA by providing clear direction surrounding preventing, identifying, and managing conflict of interest situations.
Other measures presented to the Board included a new method to guide the application of disciplinary measures in response to misconduct. This new guidance also aligned the CRA's disciplinary procedures with the recent addition to the Taxpayers' Bill of Rights: "You have the right to lodge a service complaint and request a formal review without fear of reprisal."
With respect to the security of tax and benefit information, the Board monitored action plans stemming from the Office of the Privacy Commissioner's audit of the administration of personal information, released on October 29, 2013. The Board also gave direction on the evolution of the Information Technology Security Program. The Board received updates twice during the year with information on security innovations, ongoing initiatives, and an overview of incidents. A third-party review conducted in the winter of 2013 found the CRA above average among its peers (including financial institutions and insurance companies) in this area.
The Board also supported the implementation of a new level of personnel security screening called Reliability Status Plus. It will strengthen security screening of employees in specific positions of trust within the CRA by identifying potential vulnerabilities and potential indicators resulting from an individual's financial situation, including tax compliance.
In addition, the Board approved the Internal Audit Charter, which meets the Institute of Internal Auditors requirements. The Charter had been recommended in the third-party review of the Corporate Audit and Evaluation Branch in 2012-2013.
Information technology responsiveness and sustainability
The Board encouraged and supported the CRA's advances in information technology (IT), considered critical to service excellence and the implementation of government-wide priorities.
To this end, the Board reviewed and approved the renewed IT strategy 2013-2014 to 2015-2016, which was aligned with the Corporate Risk Profile and priorities from the Corporate Business Plan and Vision 2020 strategic directions.
The Board also approved the CRA IT Security Strategy 2013-2016, aligned with the CRA's strategic vision. The Security Strategy ensures the protection of the confidentiality, integrity, and availability of taxpayer information and associated electronic services. It sets out the way the CRA will deliver security technology services efficiently and use industry-leading solutions in a cost-effective manner.
Further, the Board monitored the CRA's information technology investments and continued to oversee the management of the relationship with Shared Services Canada (SSC). Areas of oversight included the implementation of the SSC-CRA Relationship Assessment Framework, as well as an operating protocol and security governance. The Board received regular updates on government-wide and SSC transformation initiatives.
One of these major initiatives was the Data Centre Co-Location project. In July 2013, SSC's information technology infrastructure and associated CRA and Canada Border Services Agency services moved from Data Centre Heron to the new Data Centre West Québec, to support long term business, business continuity, security, and growth requirements.
Resource optimization
The Board fulfilled its oversight responsibilities for managing CRA resources in 2013-2014 by ensuring investment decisions reflected corporate priorities, approved projects were appropriately managed, and future funding pressures were identified.
The Board was briefed on the CRA Strategic Investment Plan 2013-2014 to 2022-2023, the 10-year investment plan for the CRA's portfolio of major project investments. Board members noted the maturity and progress of the CRA's approach to investment planning.
The Board also received quarterly resource management reports on the CRA's financial position, and was regularly updated by the Office of the Auditor General. It performs its own audits and reviews the CRA's annual statements, which are then submitted for approval by the Board.
Effective oversight and governance
In 2013-2014, the Board continued to oversee the management of enterprise risk: it approved the Risk-Based Audit and Evaluation Business Plan 2013-2016. It also received the first Chief Audit Executive Annual Report since the January 2013 merger of the former Corporate Audit and Evaluation and Enterprise Risk Management branches, making sure the risk and internal audit functions remained independent, thereby safeguarding the reliability of these functions. The Board monitored the high-performing enterprise risk management of the CRA: it studied key risk assessment results for the Corporate Risk Profile for 2013-2014, along with risk responses, accountabilities, and action plans.
In addition, the Board used a risk-based approach (for the third time) to set assessment priorities and assess CRA management processes, practices, and results through the Board of Management Oversight Framework.
The Board plays a major role in approving policy in its areas of oversight. During 2013-2014, it approved a new Information Management Policy Framework and a revised Information Management Policy, Project Management Policy and Real Property Management Policy.
Conclusion
The Board believes it has accomplished its strategic objectives for 2013-2014. It is committed to fulfilling its mandate to provide oversight of the organization and administration of the CRA, in the areas under its purview. It has provided senior management with direction and guidance throughout 2013-2014. The Board also acknowledges the excellent co-operation and support it received from the Commissioner, senior management, and employees of the CRA.
Board membership
The following are the Board members, as of March 31, 2014.
Richard (Rick) Thorpe, CPA, CMA, FCMA
Chair, Board of Management
Penticton, British Columbia
Myles Bourke, B.Comm., FCPA, FCA
Corporate Director
Lethbridge, Alberta
Richard J. Daw, FCA, CMC
Corporate Director
St. John's, Newfoundland and Labrador
Raymond Desrochers, B.Comm., CA, CFE
Partner
BDO CANADA LLP Chartered Accountants & Consultants
Winnipeg, Manitoba
Gerard J. Fitzpatrick, CPA, FCA, TEP
Partner
Fitzpatrick & Company Chartered Accountants
Charlottetown, Prince Edward Island
Gordon Gillis, B.A., LL.B.
Corporate Director
Eureka, Nova Scotia
Norman G. Halldorson, B.Comm., CA, FCA
Corporate Director
Clavet, Saskatchewan
Fauzia Lalani, P.Eng.
Director, Logistics Services
Suncor Energy Services Inc.
Calgary, Alberta
Robert (Bob) Manning, B.B.A.
Associate
Owens MacFadyen Group
Saint John, New Brunswick
Margaret Melhorn, B.A., M.A.
Corporate Director
Yellowknife, Northwest Territories
James R. Nininger, B.Comm., M.B.A., Ph.D
Corporate Director
Ottawa, Ontario
Luce Samoisette, LL.M., MS Taxation, DDN, LL.B.
President
Université de Sherbrooke
Sherbrooke, Quebec
Andrew Treusch, B.A., M.A.
Commissioner of the Canada Revenue Agency
Canada Revenue Agency
Ottawa, Ontario
****At the time of writing this report, processes were under way to appoint new members from British Columbia and Ontario****
Committee membership and director participation
The Board of Management is supported by four committees: they undertake much of the detailed review of items brought before the Board for its consideration. The following table shows the membership of each committee as well as directors' committee attendance over the 2012-2013 fiscal year.
| Board members |
Board of management (9 meetings)1 |
Audit committee (5 meetings)2 |
Governance committee (3 meetings) |
Human resources committee (4 meetings) |
Resources committee (4 meetings) |
BoMOF sub-committee (3 meetings) |
|---|---|---|---|---|---|---|
| Myles Bourke |
8/9 | 5/5 | 3/3 | |||
| Richard J. Daw |
8/9 | 4/5 | ||||
| Raymond Desrochers | 9/9 | 3/3 | ||||
| Gerard J. Fitzpatrick | 9/9 | 5/5 | ||||
| Gordon Gillis |
9/9 | 3/3 | 4/4 | 3/3 | ||
| Norman G. Halldorson | 9/9 | 5/5 | 3/3 | |||
| Fauzia Lalani |
7/7 | 1/2 | 3/3 | 1/1 | ||
| Robert (Bob) Manning | 8/9 | 4/4 | ||||
| Margaret Melhorn |
9/9 | 4/4 | 2/2 | |||
| James R. Nininger |
7/9 | 3/3 | 4/4 | 3/3 | ||
| Luce Samoisette |
9/9 | 4/4 | ||||
| Richard (Rick) Thorpe B.C. director) |
5/5 | 2/2 | ||||
| Andrew Treusch | 9/9 | 5/5 | 3/3 | 4/4 | 3/4 | 2/3 |
| Board members | Board of management (9 meetings)1 |
Audit committee (5 meetings)2 |
Governance committee (3 meetings) |
Human resources committee (4 meetings) |
Resources committee (4 meetings) |
BoMOF sub-committee (3 meetings) |
|---|---|---|---|---|---|---|
| Fauzia Lalani (Interim Chair) |
2/2 | 2/2 | 1/1 | 1/1 | 1/1 | |
| Richard (Rick) Thorpe (Chair of the Board) |
4/4 | 2/2 | 2/2 | 2/2 | 2/2 | 2/2 |
| Board members |
Board of management (9 meetings)1 |
Audit committee (5 meetings)2 |
Governance committee (3 meetings) |
Human resources committee (4 meetings) |
Resources committee (4 meetings) |
BoMOF sub-committee (3 meetings) |
|---|---|---|---|---|---|---|
| Susan J. McArthur |
3/3 | 1/1 | 1/1 | 1/1 | 1/1 | |
| Sylvie Tessier |
5/5 | 1/1 | 2/2 | |||
| Average attendance per meeting |
120/125=96% | 29/30=97% | 20/21=95% | 24/24=100% | 20/21=95% | 15/16=94% |
| Member capacity | Per annum retainer | Per diem |
|---|---|---|
| Board chair | $14,500 - $17,100 | $565 - $665 |
| Committee chair | $11,100 - $13,000 | $565 - $665 |
| Director | $7,300 - $8,600 | $475 - $550 |
Financial statements highlights
Condensed Statement of Operations and Agency Net Financial Position (unaudited)
For the year ended March 31, 2014
| 2013-2014 planned results | 2013-2014 actual |
2012-2013 actual |
Difference (2013-2014 actual minus 2013-2014 planned) |
Difference (2013-2014 actual minus 2012-2013 actual) |
|
|---|---|---|---|---|---|
| Total expenses | 4,516,600,812 | 4,562,082,581 | 4,575,001,779 | 45,481,769 | 12,919,198 |
| Total non-tax revenues | 516,965,608 | 493,500,773 | 496,744,600 | (23,464,835) | (3,243,827) |
| Net cost of operations before government funding and transfers | 3,999,635,204 | 4,068,581,808 | 4,078,257,179 | 68,946,604 | (9,675,371) |
| Agency net financial position | 309,089,115 | 659,602,859 | 634,801,179 | 350,513,744 | 24,801,680 |
The CRA's 2013-2014 net cost of operations before government funding and transfers amounted to $4,068.6 million, decreasing by $9.7 million from the $4,078.3 million net cost of operations before government funding and transfers in 2012-2013.
Personnel expenses (salaries, other allowances and benefits) are the CRA's primary costs, representing 74% of total expenses while the remaining 26% of expenses are comprised of various other costs such as accommodation, information technology equipment and services. The increase in personnel costs of $26.6 million is mostly attributable to economic salary increases and increments pursuant to collective agreement provisions, increases in employee severance benefits expenses offset by lower salary expenses resulting from a slight reduction of workforce and a decrease in the employer's contributions to the health and dental insurance plans.
Non-personnel expenses have decreased by $39.5 million in 2013-2014. This variance mainly results from a decrease in the purchases and maintenance of computer equipment and software in which the transfer of information technology responsibilities to Shared Services Canada contributed, a decrease in the interest on accrued employee benefits along with a decrease in postage and travel expenses.
Condensed Statement of Financial Position (unaudited)
As at March 31, 2014
| 2013-2014 | 2012-2013 | Difference | |
|---|---|---|---|
| Total net liabilities | 1,227,975,851 | 1,206,348,417 | 21,627,434 |
| Total net financial assets | 170,082,996 | 169,418,419 | 664,577 |
| Agency net debt | 1,057,892,855 | 1,036,929,997 | 20,962,858 |
| Total non-financial assets | 398,289,996 | 402,128,818 | 3,838,822 |
| Agency net financial position | 659,602,859 | 634,801,179 | 24,801,680 |
The increase in the Agency net financial position is mainly attributable to an increase in accrued salaries partly offset by a decrease in accounts payable and accrued employee severance benefits. Employee sick leave and severance benefits combined account for 66% of the CRA total liabilities in 2013-2014.
Non-financial assets are comprised of 97% tangible capital assets. The CRA managed a capital budget of $110.0 million for the year 2013-2014 ($83.4 million for 2012-2013), of which $46.7 million ($36.9 million for 2012-2013) remains available for use in future years in accordance with the CRA's multi-year resource management strategy. Investments in in-house developed software represent a significant portion of the CRA's total investments in information technology.
Financial statements
The CRA financial statementsvi can be found on the CRA's website.
Supplementary information tables
The supplementary information tablesvii listed in the 2013-2014 Departmental Performance Report can be found on the CRA's website.
- CRA sustainable development strategy
- details on transfer payment programs
- internal audits and evaluations
- response to parliamentary committees and external audits
- sources of respendable and non-respendable non-tax revenue
- details on project spending
- user fees reporting
Tax expenditures and evaluations
The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance publishes cost estimates and projections for these measures annually in the Tax Expenditures and Evaluationsviii publication. The tax measures presented in the Tax Expenditures and Evaluations publication are the sole responsibility of the Minister of Finance.
Service standards
Canadians' confidence in the integrity of the tax system is essential to the CRA's success. Meeting our service standards shows that we are answering the needs of taxpayers and benefit recipients. Our service standards tell citizens what level of performance they can reasonably expect from the CRA under normal circumstances. We review our standards and targets every year and update them as needed.
New Service Standards in 2013-2014
We introduced four new service standards:
- Charities – written enquiries – routine
- Charities – written enquiries – complex
- Processing a request to authorize or cancel a representative – paper
- Processing a request to authorize or cancel a representative – electronic
Revised Service Standards in 2013-2014
We made changes to two of our service standards.
- The standard for processing excise tax, excise duty, softwood lumber returns, and air travellers' security charge returns was within 90 calendar days 95% of the time. As a result of our increased efficiency in processing these returns, we improved service standard by reducing the time for assessment from 90 to 60 calendar days.
- Processing T2 corporate income tax returns included both paper and electronic returns. We created two separate service standards in 2013-2014, one for electronic and one for paper. We will assess electronically filed T2 corporate income tax returns in 45 calendar days or less and paper-filed T2 returns in 90 calendar days or less.
Our Service Standard Results
| Service | Standards | Targets | 2011-2012 | 2012-2013 | 2013-2014 |
|---|---|---|---|---|---|
| General enquiries – telephone service level | Respond to calls in the agent queue within two minutes | 80% | 80.1% | 82% | 80% |
| Business enquiries – telephone service level | Respond to calls in the agent queue within two minutes | 80% | 81.2% | 82% | 81% |
| GST/HST rulings and interpretations – telephone enquiries | Respond to calls in the agent queue within two minutes | 80% | 88% | 97% | 95% |
| GST/HST rulings and interpretations – written enquiries | Respond to written requests for GST/HST rulings and interpretations within 45 business days of receipt in the CRA. This excludes highly technical and precedent and/or policy-setting rulings and interpretations | 80% | 41.9% | 81% | 74%3 |
| Charities – responding to telephone enquiries | Respond to calls in agent queue within two minutes | 80% | 84.1% | 86.3% | 85.1% |
| Charities – responding to simple applications | Respond to simple applications for charitable registration within two months, upon receipt of a omplete application | 80% | 86% | 94.5% | 90.9% |
| Charities – responding to regular applications | Respond to regular applications for charitable registration within six months, upon receipt of a complete application | 80% | 91.3% | 97.5% | 99% |
| Charities – written enquiries – routine | Review and respond to routine written enquiries in 30 calendar days or less of receipt | 80% | N/A4 | N/A4 | 79.8% |
| Charities – written enquiries – complex | Review and respond to complex written enquiries in 75 calendar days or less of receipt | 80% | N/A4 | N/A4 | 55% |
| Advance income tax rulings | Issue advance income tax rulings within 90 business days of receipt of all essential information from the client | 85% | N/A5 | 74% | 75%6 |
| Technical interpretations | Issue technical interpretations within 90 business days of receipt of all essential information from the client | 85% | N/A5 | 83% | 87% |
| Actuarial valuation reports | Review actuarial valuation reports within nine months and provide written approval of the recommended employer contributions | 80% | 50.7% | 52% | 71% |
| Amendments to registered pension plans | Review pension plan amendments for compliance with the Income Tax Act within nine months | 80% | 78.7% | 81% | 82% |
| Applications to register pension plans | Complete a full review and provide a response on applications to register pension plans within 180 calendar days | 85% | 83.9% | 90% | 89% |
| Deferred income plans – response to written enquiries | Respond to written enquiries within 60 calendar days | 80% | 88.3% | 98% | 89% |
| Deferred profit sharing plans – amendments and terminations | Review requests to amend and to terminate plans within 270 days | 80% | 93.7% | 97% | 92% |
| Deferred profit sharing plans – reviewing applications | Review applications to register new deferred profit sharing plans within 180 days | 80% | 98.1% | 100% | 98% |
| Education savings plans (applications to register, amend, or terminate) | Respond to applications to approve, amend, and terminate education savings plans specimen plans within 60 calendar days | 85% | 97.5% | 91% | 92% |
| Retirement income funds (applications to register, amend, or terminate) | Respond to applications to register, amend, or terminate retirement income funds within 60 calendar days | 80% | 96.2% | 99% | 99% |
| Retirement savings plans (applications to register, amend, or terminate) | Respond to applications to register, amend, or terminate retirement savings plans within 60 calendar days | 80% | 94.4% | 96% | 99% |
| Service | Standards | Targets | 2011-2012 | 2012-2013 | 2013-2014 |
|---|---|---|---|---|---|
| Processing T1 individual income tax returns (EFILE and NETFILE) | Process electronic T1 returns (EFILE and NETFILE) within an average of two weeks of receipt | 100% | 1.6 weeks | 1.6 weeks | 1.6 weeks |
| Processing T1 individual income tax returns (paper) | Process a paper T1 return and mail a notice of assessment and refund, if applicable, in an average of four to six weeks | 100% | 3.9 weeks | 4.3 weeks | 5 weeks |
| Responding to taxpayer-requested adjustments (T1) received by internet | 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% | 1.8 weeks | 2 weeks | 1.6 weeks |
| Responding to taxpayer-requested adjustments (T1) | 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% | 7 weeks | 7 weeks | 7 weeks |
| Processing T3 trust returns | Process T3 trust returns within four months | 95% | 98.7% | 98.7% | 99.3% |
| Processing T2 corporation income tax returns – electronic | Assess electronic T2 returns (corporation income tax) within 45 calendar days | 90% | N/A4 | N/A4 | 97.1% |
| Processing T2 corporation income tax returns – paper | Assess paper T2 returns (corporation income tax) within 90 calendar days | 90% | N/A4 | N/A4 | 91.4% |
| Processing GST/HST returns | Process GST/HST returns within 30 calendar days of receipt | 95% | 91% | 93.8% | 96.5% |
| Processing excise tax, excise duty, softwood lumber returns, and air travellers security charge returns | Assess excise tax, excise duty, softwood lumber returns, and air travellers security charge returns within 60 calendar days of receipt | 95% | N/A5 | N/A5 | 97.2% |
| Service | Standards | Targets | 2011-2012 | 2012-2013 | 2013-2014 |
|---|---|---|---|---|---|
| Claims – SR&ED tax incentives – refundable claims | Process claims for tax incentives from businesses that conduct SR&ED in Canada within 120 calendar days from receipt of a complete claim for refundable claims | 90% | 96.5% | 96% | 96% |
| Claims – SR&ED tax incentives – non-refundable claims | Process claims for tax incentives from businesses that conduct SR&ED in Canada within 365 calendar days from receipt of a complete claim for non-refundable claims | 90% | 96.7% | 96% | 96% |
| Claims – SR&ED tax incentives – claimant-requested adjustments to refundable claims | Process claims for tax incentives from businesses that conduct 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% | 95.1% | 95% | 96% |
| Claims – SR&ED tax incentives – claimant-requested adjustments to non-refundable claims | Process claims for tax incentives from businesses that conduct 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% | 94.5% | 94% | 93% |
| Claims – video and film tax credits – refundable claims – audited | 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, the Ontario film and television tax credit, and the Ontario production services tax credit within 120 calendar days from the date of receipt where audit action is undertaken | 90% | 79% | 90.5% | 96% |
| Claims – video and film tax credits – refundable claims – unaudited | 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, the Ontario film and television tax credit, and the Ontario production services tax credit within 60 calendar days from the date of receipt when no audit action is undertaken | 90% | 95.9% | 96.2% | 96% |
| Service | Standards | Targets | 2011-2012 | 2012-2013 | 2013-2014 |
|---|---|---|---|---|---|
| First contact letter for disputes | Acknowledge taxpayer disputes within 30 calendar days after we receive them | 85% | N/A7 | 84%7 | 85.2% |
| Service complaints – two-day acknowledgement | Acknowledge receipt of the complaint within two business days. | 80% | 97.2% | 92% | 85.8% |
| Service complaints – 30 day resolution | Resolve the complaint within 30 business days | 80% | 94.5% | 94.3% | 95.3% |
| Problem resolution program – acknowledge receipt | Acknowledge receipt of a problem within two business days | 95% | 97.6% | 98.2% | 98.3% |
| Problem resolution program – resolution | Resolve the problem within 15 business days. If we cannot (for example, if a case is complex), we will make contact within that time to give an anticipated date of resolution | 95% | 97.5% | 98.2% | 98.2% |
| Service | Standards | Targets | 2011-2012 | 2012-2013 | 2013-2014 |
|---|---|---|---|---|---|
| Canada child tax benefit enquiries – telephone service level | Respond to calls in the agent queue within two minutes | 75% | 76% | 78% | 75% |
| GST/HST credit enquiries telephone service level | Respond to calls in the queue within two minutes | 75% | 76.6% | 77% | 75% |
| Processing benefit applications and marital status change forms – timeliness | Issue a payment, notice, or explanation within 80 calendar days | 98% | 99% | 99.8% | 99.5% |
| Processing benefit applications and marital status change forms – accuracy | Accurately process the appropriate payment and notice and, if necessary, issue a letter requesting additional information | 98% | 97.5% | 98.7% | 99% |
| Responding to benefit and credit enquiries – timeliness | Respond to written enquiries and telephone referrals from call centers within 80 calendar days | 98% | 98.1% | 98% | 99.1% |
| Responding to benefit and credit enquiries – accuracy | 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% | 98.8% | 98.1% | 98% |
| Validation and compliance – results of review | Inform you of the result of our review within 45 days after we receive the information requested | 90% | 98.5% | 99% | 98.9% |
| Processing a request to authorize or cancel a representative – electronic | Process your complete electronic request to authorize or cancel a representative in five business days or less of receipt by the CRA, provided the request is complete | 90% | N/A4 | N/A4 | 99.4% |
| Processing a request to authorize or cancel a representative – paper | Process your complete paper request to authorize or cancel a representative in 20 business days or less of receipt by the CRA, provided the request is complete | 90% | N/A4 | N/A4 | 96.1% |
| Service | Standards | Targets | 2011-2012 | 2012-2013 | 2013-2014 |
|---|---|---|---|---|---|
| Taxpayer requests for statistical tax data | Respond to taxpayer requests for statistical data within an average of 30 calendar days | 100% | 17 days | 14 days | 11 days |
New Service Standards in 2014-2015
We will introduce a new service standard for the e–Services helpdesk. We will respond to calls in the queue within two minutes, 80% of the time. This service standard is based on the CRA's existing telephone standards for:
- individual income tax and trust enquiries
- business enquiries
- Canada child tax benefit enquiries
- goods and services tax/harmonized sales tax (GST/HST) credit enquiries
Detailed tax debt management action plans
These plans track actions to address the recommendations of the Standing Committee on Public Accounts (PACP) and the Office of the Auditor General of Canada (OAG) for how the CRA collects tax debt.
Risk management
The CRA's strategy to improve the risk management of its collections program will address OAGs recommendation 8.52: "The Canada Revenue Agency should establish a more comprehensive automated risk-scoring system for tax debt, update the risk scores on an ongoing basis, and use the risk scores to prioritize workload throughout the collections process." PACP reference #2
| Specific commitment and deliverables | Target date | Progress |
|---|---|---|
| Fully operational risk scores are scheduled for GST/HST programs. | 2014 | The data mining models for GST/HST programs have been automated and deployed. |
Performance reporting
The CRA's strategy to improve how it reports on the performance of its collections program will address OAGs recommendation 8.41: "The Canada Revenue Agency should significantly improve its management information to make it complete and comprehensive. It should develop reliable techniques and information sources to determine on a regular basis the results of its collection efforts and use that information to guide its decision-making for each of its major collection modes and actions." PACP reference #5
| Specific commitment and deliverable | Target date | Progress |
|---|---|---|
| Performance reporting tools are scheduled to be progressively implemented throughout all major business revenue lines. | 2014 | The performance reporting solution for T1 collections was deployed in June 2012. Development work on a similar solution is under way for other major business lines. |
Debt management research
The CRA's strategy to improve its debt management research will address OAGs recommendation 8.28: "The Canada Revenue Agency should identify and collect the data it needs to analyze the makeup of its tax debt and to develop better collection strategies." (considering a variety of factors including fluctuations in the economic cycle) PACP reference #4.
| Specific commitment and deliverable | Target date | Progress |
|---|---|---|
| Research into economic indicators: develop research approach and conduct study. | Ongoing | In 2013-2014, debt management research:
|
Benefit programs and benefit-related services delivered by the Canada Revenue Agency
| Canada child tax benefit | Children's special allowances |
| Disability tax credit | Universal child care benefit – on behalf of Employment and Social Development Canada |
| Goods and services tax / harmonized sales tax credit | Working income tax benefit advance payments |
| 1st year | 1st year | ||
|---|---|---|---|
| British Columbia – BC family bonus | 1996 | Newfoundland and Labrador seniors' benefit | 1999 |
| Alberta family employment tax credit | 1997 | Saskatchewan low-income tax credit | 2000 |
| New Brunswick child tax benefit | 1997 | Newfoundland and Labrador – mother baby nutrition supplement | 2001 |
| New Brunswick working income supplement | 1997 | Ontario child benefit | 2007 |
| Newfoundland and Labrador harmonized sales tax credit | 1997 | British Columbia low-income climate action tax credit | 2008 |
| British Columbia – BC earned income benefit | 1998 | Ontario senior homeowners' property tax grant | 2009 |
| Saskatchewan child benefit | 1998 | Ontario sales tax credit | 2010 |
| Northwest Territories child benefit | 1998 | British Columbia harmonized sales tax credit | 2010 |
| Northwest Territories – territorial worker's supplement | 1998 | Nova Scotia affordable living tax credit | 2010 |
| Nova Scotia child benefit | 1998 | Ontario energy and property tax credit | 2011 |
| Yukon child benefit | 1999 | Northern Ontario energy credit | 2011 |
| Nunavut child benefit | 1999 | Ontario trillium benefit | 2012 |
| Nunavut – territorial worker's supplement | 1999 | New Brunswick school supplement | 2012 |
| Newfoundland and Labrador child benefit |
1999 | Prince Edward Island sales tax and credit | 2013 |
| 1st year | 1st year | ||
|---|---|---|---|
| Relief for heating expenses (federal) | 2000 | Energy cost benefit (federal) | 2005 |
| British Columbia – BC energy rebate | 2001 | Alberta 2005 resource rebate | 2005 |
| Alberta energy tax refund | 2001 | Ontario home electricity relief | 2006 |
| Ontario taxpayer dividend | 2001 | British Columbia climate action dividend | 2008 |
| Nova Scotia taxpayer refund |
2003 | Ontario sales tax transition benefit | 2010 |
| Fifty-four income verification data exchanges with provinces to support programs | Ten national child benefit supplement data exchanges with provinces and territories to facilitate the calculation of social assistance |
| Five data transfers with provinces to support top-ups for CRA-administered child benefit programs | Two data transfers of income and child information to support administration of the Ontario child care supplement and Quebec family allowance programs |
| Eight data exchanges and transfers to support the Nova Scotia pharmacare program, the British Columbia low-income climate action tax credit, Ontario senior homeowners property tax grant, Ontario sales tax credit, Ontario energy and property tax credit/Northern Ontario tax credit, Ontario trillium benefit, BC harmonized sales tax credit and to assist the ministère du Revenu du Québec in administering the Quebec Taxation Act | Nine data exchanges and data transfers to support federal administration of the employment insurance family supplement, guaranteed income supplement, Canada learning bond, additional canada education savings grant, registered disability savings plan and Canadian disability savings grant, Old Age Security, and universal child care benefit |
Footnote 1: This includes all Board meetings and teleconferences, and the annual strategic planning meeting.
Footnote 2: The two teleconferences on the financial statements have been streamlined to one teleconference of the audit committee followed by one of the Board. The Commissioner-Chief Executive Officer attended as an observer in regular closed sessions.
Footnote 3: Some resources diverted from providing rulings to train new technical staff and develop new initiatives (e.g., folios).
Footnote 4: Service standard introduced in 2013-2014; no prior-year results available.
Footnote 5: The service standard was revised in 2013-2014; no prior-year results available.
Footnote 6: Results improved (from 71% at the start of December to 74% at the end of March) when resources were reallocated and inventory management strategies were implemented.
Footnote 7: The measurement has been revised, affecting comparability with previous-year results, to more accurately report results by calculating the period of time when the first contact letter is sent and received, as opposed to measuring performance once the file has been closed.
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