departmental performance report 2012-13
[taxpayer and business assistance]
[program description]
As the administrator of Canada's self-assessment tax system, the CRA has a responsibility to provide taxpayers with accurate and timely information so that they can comply with Canada's tax laws. To achieve this, we maintain a Web site that contains general information about our programs. We also use videos and webinars and interact with Canadians on social media. When taxpayers require additional support, we offer expertise and guidance through our telephone services, technical interpretation and advance income tax rulings service. We also administer and monitor charities and registered plans to ensure that they are managed in accordance with existing legislation.
2012-2013 financial resources (thousands of dollars)
| Total budgetary expenditure | Planned spending (Footnote 1) |
Total authorities | Actual spending (Footnote 2) |
Difference |
|---|---|---|---|---|
| 543,025 | 583,128 | 467,240 | 453,280 | 129,848 |
| Sub-program | Planned spending (Footnote 1) |
Actual spending (Footnote 2) |
Difference |
|---|---|---|---|
| Taxpayers services - enquiries | 159,129 | 174,462 | (15,333) |
| Taxpayers services - information products | 9,303 | 11,481 | (2,178) |
| Policy, rulings and interpretations (Footnote 3) | 364,516 | 221,511 | 143,005 |
| Registered plans | 16,001 | 16,191 | (190) |
| Charities | 29,804 | 25,372 | 4,432 |
| Charities - Public safety and anti-terrorism | 4,375 | 4,264 | 111 |
| Total | 583,128 | 453,280 | 129,848 |
| Numbers may not add due to rounding. |
(Footnote 1): Planned spending has been restated from what was shown in the Canada Revenue Agency 2012-2013 Report on Plans and Priorities in order to distribute the real property accommodations funding (previously centralized in the internal services program) to all applicable programs. It should also be noted that planned spending excludes severance payments, parental benefits and vacation credits, as this funding is received during the fiscal year and is only included in actual spending.
(Footnote 2): This figure represents the actual spending for the program on a modified cash basis. Please refer to page 154 of the CRA Annual Report to Parliament 2012-2013 for an explanation of how this figure relates to the CRA Financial Statements - Agency Activities.
(Footnote 3): Includes statutory payments related to Canada/US softwood lumber agreement (planned spending is $280 million and actual spending is $136.9 million, resulting in a difference of $143.1 million).
2012-2013 human resources (full-time equivalents)
| Sub-program | Planned | Actual | Difference |
|---|---|---|---|
| Taxpayers services - enquiries | 2,448 | 2,478 | (30) |
| Taxpayers services - information products | 133 | 148 | (15) |
| Policy, rulings and interpretations | 1,058 | 985 | 73 |
| Registered plans | 174 | 153 | 21 |
| Charities | 292 | 256 | 36 |
| Charities - Public safety and anti-terrorism | 36 | 37 | (1) |
| Total | 4,141 | 4,057 | 84 |
| Numbers may not add due to rounding. |
[sub-program description]
| Taxpayer services - enquiries | The Taxpayer Services - Enquiries Program develops and maintains information services that assist taxpayers in voluntarily complying with Canada's tax laws. It provides taxpayers with access to timely and accurate responses to their telephone and written tax enquiries through our Web site as well as other targeted services. |
| Taxpayers services - information products | The Taxpayers Services - Information Products Program is responsible for providing tax information on the CRA's Web site and information products like pamphlets, brochures, and tax packages. |
| Policy, rulings and interpretations | The Policy, Rulings, and Interpretations Program is responsible for the official CRA positions on the interpretation of the acts administered by the CRA. It clarifies tax issues that taxpayers, registrants, and tax intermediaries may be facing by explaining how legislation applies to specific situations and informs them on tax and CPP/EI matters by issuing rulings, interpretations, technical publications, and newsletters. The program provides early certainty to taxpayers through advance, binding rulings and non-binding interpretations. The program develops legislative policy in collaboration with the Department of Finance and offers specialized legislative policy and administrative services to other Canadian government organizations. |
| Registered plans | The Registered Plans Program is responsible for all activities related to the provisions of the Income Tax Act for deferred income and savings plans. It provides information through its Web page and outreach activities, and by assisting taxpayers through its telephone enquiry line and written communication services. It registers, audits, and approves contributions to these plans to ensure compliance. |
| Charities | The Charities Program is responsible for administering the national registration program for charities, registered Canadian amateur athletic associations, and registered national arts service organizations. The program is responsible for activities that span across the full spectrum of the compliance continuum including registration, communications and outreach, processing and examination, audit and enforcement, and policy and technical guidance. |
| Charities - Public safety and anti-terrorism | The Charities - Public Safety and Anti-Terrorism Program protects the integrity of the registration system for charities under Canada's Income Tax Act by screening applications and monitoring registered charities for the risk of terrorist involvement. |
[performance analysis and lessons learned]
[providing general information]
The CRA provides information to taxpayers so that they can comply more easily with Canada's tax laws. We encourage compliance by making sure that taxpayers have access to the information they need to meet their tax obligations. To do so, we interact with taxpayers and benefit recipients through different communication channels to raise awareness of our existing programs and services and increase their usage. We monitor the use of services to tell us where there are gaps and prioritize service enhancements accordingly.
[the CRA's Web site]
The CRA's Web site is our primary channel for providing general information. Our Web site is structured around four main categories: individuals and families, businesses, charities and giving, and representatives. It covers a variety of topics, and visitors are just a few clicks away from downloading most of the forms or publications they need.
We update our Web pages regularly to add new content or to improve navigation and clarity of information. We use Web analytics to help us understand how Canadians use our Web site and to assess and improve its effectiveness. In 2012-2013, we improved how information is presented in the GST/HST section of the Web site to make it easier for visitors to find what they need. We also created www.cra.gc.ca/businessonline, a Web page that contains all e-services available for businesses, conveniently grouped by tasks that businesses perform relative to their tax information.
Our Web site has been upgraded to comply with the new Government of Canada Standard on Web Usability. This standard allows for a more consistent, user-friendly experience on Government of Canada Web sites. The CRA provides a convenient, secure online environment so that Canadians can find information and complete transactions with us.
Key results:
- We received 105,929,746 visits to our Web site, a 21% increase over 2011-2012
- 22,967,983 forms and publications were downloaded
[webinars, videos, and social media]
We communicate information to taxpayers through information sessions and videos. We also use webinars, which are interactive presentations conducted over the internet. While information sessions allow us to have a more engaging dialogue with participants, webinars are convenient and easy to use.
These contain up-to-date information about CRA's programs and initiatives and help taxpayers learn about their tax obligations and the benefits to which they may be entitled. Videos posted this year contain information on topics like Canadian students and taxes, GST/HST for small businesses, and Charities Quick View, a new display that provides a summary of a registered charity's activities, revenues, and expenditures.
Key results:
- We delivered more than 2,474
- face-to-face information sessions to approximately 86,703 participants
- We delivered more than 152 webinars to approximately 10,525 participants
- We posted 11 videos on our Web site
Our goal is to engage Canadians in a variety of ways, and social media helps us reach that goal. We recognize that many Canadians prefer to watch videos on YouTube because it is more convenient for them. Our YouTube channel contains videos that cover many topics of interest. We use YouTube to promote new tax credits and useful services like direct deposit, which allows an individual to receive income tax refunds and benefit payments directly in their bank account, or to provide step-by-step instructions to make a payment to the CRA.
We are active on Twitter so that we can inform our followers about the CRA's programs and services, and offer information that Canadians may need to fulfil their obligations as taxpayers and receive benefits to which they may be entitled. The CRA also answers questions of a general nature on Twitter by providing links to information available through the Web site. Our tweets are often re-tweeted to a wider audience, which helps us send our messages to a greater number of Canadians.
Key results:
- We posted 44 videos on YouTube
- Our YouTube videos were viewed more than 736,000 times, compared to 36,500 in 2011-2012 (Footnote 1)
- Our Twitter followers increased to 16,336, a fivefold increase over 2011-2012
(Footnote 1): The vast majority of the video "views" were generated as part of the paid filing season advertising campaign and do not represent unique visits to our YouTube channel.
[enquiries and complex requests]
Taxpayers and benefit recipients who want to understand how tax laws apply to their specific circumstances can rely on the knowledge and expertise of our call centre agents. Recognizing that taxpayers need to manage their tax affairs with greater confidence and certainty, we also write technical publications and provide technical interpretations and rulings for income tax and GST/HST.
[telephone services]
Taxpayers can call the CRA when they want to know how the information on the Web site applies to their specific circumstances or when they need help. We have dedicated telephone lines for general and account-specific enquiries, benefit payments, GST/HST credit, international tax and non-resident enquiries, and payment arrangements.
We answered over 23 million calls through agent and automated services and carried out several improvements to our telephone services during the year:
- On January 21, 2013, "Agent ID" was launched for the CRA's business enquiries and GST/HST rulings telephone services. CRA agents now provide businesses with their first name, an agent identification number, and a regional suffix at the beginning of each call. Agent ID makes it easier for business owners to provide feedback on CRA services.
- We ran a pilot project to strengthen our national telephone quality assurance program. This program helps us identify local and national training needs and improve the quality of the service we provide.
- We integrated the telephone service for international tax and non-resident enquiries into the national telephone network. This allowed us to increase the hours of service offered to non-resident callers.
- We expanded the functionality of our Interactive Voice Response and our automated Tax Information Phone Service (TIPS) systems. Callers can now conveniently order an income and deduction printout or a remittance voucher without having to speak with an agent.
[technical interpretation and early certainty]
In March 2013, the CRA released its first set of income tax folios, a new technical information publication that facilitates Web navigation by making use of hyperlinks. This new publication will eventually replace interpretation bulletins and income tax technical news.
We also provide, in writing, non-binding income tax and GST/HST technical interpretations of specific provisions of tax law. Taxpayers can request an advance income tax or GST/HST ruling for a technical interpretation that relates to a specific transaction considered. The CRA also provides Canada Pension Plan/Employment Insurance (CPP/EI) and Pensionable and Insurable Earnings Review rulings for programs that fall under the Canada Pension Plan and Employment Insurance Act, which it jointly administers with Human Resources and Skills Development Canada.
Tax rulings will be regarded as binding upon the CRA if the facts presented in the request were accurately stated and the transaction was carried out as set out in the request. We give tax rulings and technical interpretations to taxpayers to help them manage their tax affairs with confidence in Canada and across international borders. Our goal is to encourage compliance with Canada's tax laws through early certainty.
Meeting our target for advance income tax rulings has proved challenging in recent years. In 2012-2013, we made the decision to devote time and effort to developing the new income tax folios. We believe income tax folios are a long-term investment that will ultimately help us meet our service standard for advance income tax rulings.
Given the significance of the rulings to proposed business transactions, the CRA requires time to properly analyze each transaction and provide rulings that respond to the expectations of our clients. As a result, our service standard for advance income tax rulings has been adjusted to reflect a more realistic schedule.
We met our service standard for providing GST/HST rulings and interpretations.
Key results:
- We provided 2,897 income tax technical interpretations
- 89% of CPP/EI rulings were completed within 90 days of receipt
- We completed 4,075 GST/HST rulings and interpretations
- 81% of field GST/HST rulings and technical interpretations were answered to within 45 days of receipt
- We answered 120,414 technical GST/HST telephone enquiries
- We answered to 97% of technical GST/HST calls in the telephone enquiries queue within 2 minutes
- We provided 175 advance income tax rulings
Delivering services more effectively
While our service delivery model is evolving, Canadians who want to use our traditional services will not be left behind. They will continue to be able to talk to one of our well-trained call centre agents, make an appointment to receive in-person help at one of our tax services offices, and order printed copies of their income tax and benefit packages.
[registered plans]
Registered plans are one of the most effective savings and retirement tools available to Canadians. In 2011, Canadians contributed more than $34 billion to their registered retirement savings plans and held tax-free savings accounts whose total value exceeded $62 billion. Registered plans play an undeniable role in securing income for future years. We have a responsibility to ensure that registered plans fulfil their mandate according to existing legislation.
We register and monitor deferred income and savings plans like employee pension plans, retirement savings plans, education savings plans, disability savings plans, and tax-free savings accounts. We ensure the integrity of the deferred income and savings plans sector in Canada by promoting compliance with existing legislation and advising the retirement savings industry on areas that have a higher risk of non-compliance.
Key results:
- We reviewed 90% of the applications to register pension plans within 180 days
- We monitored 22,657 registered pension plans
- We responded to 98% of written enquiries within 60 days
- We conducted 585 audits of registered plans
[charities]
Charities are well placed to use their local knowledge, expertise, and relationships to help communities across Canada and in other countries. They play an essential role by providing support and expertise in fields like healthcare, education, and the environment.
Taxpayers reported donating more than $8.9 billion to charities on their 2011 income tax and benefit returns. By contributing financially to organizations and groups that support important causes, donors want to contribute to the well-being of their fellow citizens or support values in which they believe.
The CRA administers the provisions of the Income Tax Act that relate to registered charities. Registered charities are exempt from income tax and can issue official donation receipts for gifts they receive. Donors can use those receipts to lower their taxes.
Registered charities must only engage in allowable activities, file annual information returns, and keep adequate books and records to keep their registered status. In addition, they must adopt acceptable fundraising practices. To these ends, the CRA conducts audits to ensure that registered charities remain compliant with Canada's tax laws. We can impose financial penalties and suspensions and sometimes revoke the registered status in cases of serious non-compliance.
Key results:
- We processed 87,766 registered charity information returns
- We reviewed and responded to 98% of regular applications for registration within six months
- We responded to 86.3% of calls in the telephone enquiries queue within two minutes
- We audited 799 charities
- We revoked the registered status of 1,512 charities (741 voluntary revocations, 713 for delinquency, 32 for cause, 26 for loss of corporate status)
[conclusion]
We offer Canadians new choices in how they can find information about our programs and how they interact with us. They can go to our Web site, send us tweets, view our videos, and sign up for our information sessions. While online communication technologies offer us more ways to provide information to Canadians, we will continue to ensure that the information we provide through all communication channels is clear and concise.
An online survey conducted by PricewaterhouseCoopers in 2013 revealed that convenience is an essential feature that Canadians expect from government service delivery. The way the CRA provides information and services to Canadians must match their service expectations.
Intelligent compliance management starts with a service delivery model that emphasizes early intervention to minimize errors. This is done partly by simplifying access to information and services. The result is fewer but more efficient interactions between the CRA and taxpayers. To that end, we will continue to find better ways to provide the right information using the right channel at the right time.
GST/HST rulings provide greater tax certainty
Our GST/HST Rulings Program operates in a unique environment. The fact that GST/HST is a real-time, transaction-based tax often requires the CRA to establish its interpretative position before the transaction takes place. In addition, the GST/HST rulings program must react swiftly to any GST/HST legislative changes, which often become effective immediately. This means that technical information (technical interpretation bulletins, info sheets, GST/HST memoranda, etc.) must be available on the CRA Web site in advance of the effective date of new legislation. With the complexity of business transactions and the potential for significant tax assessments, businesses are recognizing how this service can help them mitigate risk. The importance of this timely, accurate, and consistent service cannot be overstated.
Our income tax and GST/HST rulings programs support voluntary compliance and helps individuals and businesses manage their tax affairs with greater certainty.
[performance results]
| Expected results | Indicators | Targets | 2010-2011 | 2011-2012 | 2012-2013 |
|---|---|---|---|---|---|
| The CRA provides accurate and timely information products and services to taxpayers and businesses | Individual enquiries - telephone service level - Respond to calls in the agent queue within two minutes | 80% | 81.8% | 80.1% | 82% |
| Business enquiries - telephone service level - Respond to calls in the agent queue within two minutes | 80% | 84.1% | 81.2% | 82% | |
| Percentage of individual callers who reach our telephone service | 85% | 91.5% | 90.7% | 90% | |
| Percentage of business callers who reach our telephone service | 85% | 92.4% | 90.2% | 90% | |
| Taxpayers and businesses have access to the information and services they require to voluntarily comply with tax laws | Visits to taxpayer services Web-based information products pages | Upward trend | 38,368,640 | 39,543,640 | 48,844,974 |
| Percentage of accurately updated internal reference materials for taxpayer services and charities agents | 100% | 100% | 100% | 100% | |
| Compliance with applicable legislation by organizations and businesses administering and/or producing registered plans, charities, and excise dutiable products is improved | Percentage of charities, registered plans and commodity audits and activities completed compared to planned | 90% | 107% | 95.9% | 106% |
| Taxpayers and businesses have access to timely information products | Percentage of information products provided in print and on the Web site on time as per work plans to address taxpayer information needs | 100% | n/a | n/a | 93% |
| Registered plan administrators and their agents receive timely service in response to applications | Percentage of registered plan applications reviewed within established timeframes | 85% | 94.4% | 83.9% | 90% |
| Non-compliance by registered plan administrators and their agents with legislation and regulations pertaining to registered plans is detected and addressed | Percentage of registered plan audits completed compared to planned | 100% | 133% | 93.6% | 130.3% |
| Taxpayers and businesses receive timely rulings and interpretations under the Income Tax Act and various other federal legislation | Respond to written GST/HST rulings and interpretations within 45 working days | 80% | 46.5% | 41.8% | 81% |
| Issue technical interpretations within 90 business days of receipt of all essential information from the client | 85% | n/a | n/a (Footnote 1) |
83% | |
| Issue advance income tax rulings within 90 business days of receipt of all essential information from the client | 85% | n/a (Footnote 1) |
n/a (Footnote 1) | 74% | |
| All stamped tobacco products are excise duty paid | All legally imported and domestically manufactured tobacco products destined for the duty-paid market are stamped | 100% | n/a | n/a | 100% |
| Non-compliance with the Excise Act and the Excise Act, 2001 with respect to dutiable products is detected and addressed | Percentage of excise regulatory reviews and excise compliance activities completed compared to planned | 90% | n/a | n/a | 95.5% |
| Enhanced service to registered charities and applicants for charitable status | Percentage of charities calls responded to within two minutes | 80% | 88.5% | 84.1% | 86.3% |
| Percentage of charitable registration applications thoroughly reviewed and responded to within established timeframes | 80% | 91.8% | 88.6% | 96% | |
| Compliance in the charitable sector is improved | Trend in the number of charities participating in abusive tax shelter schemes | Downward trend | n/a | n/a | 20 (Footnote 2) |
| Trend in the number of charities that file their annual information return on time | Upward trend | 70,298 | 67,649 | 73,983 | |
| Trend in the number of charities that are revoked for failure to file |
Downward trend | 635 | 1,104 | 713 |
(Footnote 1): Revised standard and target for 2012-2013. Results from the previous years' are no-longer comparable to the present measure.
(Footnote 2): We audited 100% of all charities known to be participating in abusive tax shelter schemes.
n/a: This is a new indicator for 2012-2013. Prior year results are not available.
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