Section III: Supplementary information

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Financial highlights

The future-oriented financial highlights presented within this Report on Plans and Priorities (RPP) are intended to serve as a general overview of the Canada Revenue Agency's (CRA) financial position and operations. These future-oriented financial highlights are prepared on an accrual basis to strengthen accountability and improve transparency and financial management.

Future-oriented financial statements can be found on the CRA's website at http://www.cra-arc.gc.ca/rppe/.

Condensed Statement of Financial Position - Agency Activities

For the year (ended March 31)

Total liabilities amount to $917.4M in 2013-2014, representing the CRA's obligations expected to be funded by appropriations in future years, as they are paid. Employee severance benefits of $495.4M are the greatest liability to the CRA, which are calculated based on employee eligibility, years of service and salary upon termination.

The CRA's financial and non-financial assets totalled $608.3M in 2013-2014, which are comprised mainly of capital assets totalling $404.8M. Software is the largest asset class, ($401.1M), as the CRA focuses on making use of the newest technology in delivering its programs and services to Canadians.

After calculating the difference between its liabilities and assets, the CRA's net financial position in 2013-2014 is $309.1M.

Condensed Statement of Operations and Agency Net Financial Position - Agency Activities

For the year (ended March 31)

The chart below outlines the Agency's future-oriented total expenses for 2013-2014. It is projected that total expenses will be $4,516.6M for the coming fiscal year.

Most of these expenses ($3,211.0M) will be directed at enhancing the CRA's capability to achieve its first strategic outcome: Taxpayers meet their obligations and Canada's revenue base is protected. The CRA will achieve this outcome by: assisting taxpayers and businesses in meeting their obligations through the provision of accurate and timely responses to their enquiries; processing and validating taxpayer returns for both individuals and businesses; identifying and addressing non-compliance with the registration, filing, remittance and payment requirements of the various Acts administered by the CRA; verifying the complete and accurate disclosure by taxpayers of all required information to establish tax liabilities and protect the tax base through audit, enforcement and incentive administrative activities; and providing a timely and impartial dispute resolution process for taxpayers who disagree with decisions made by the CRA.

$164.3M in expenses will be used to meet the CRA's second strategic outcome: Eligible families and individuals receive timely and correct benefit payments. The CRA administers the Canada Child Tax Benefit, Goods and Services Tax/Harmonised Sales Tax Credit, Children's Special Allowances, the Disability Tax Credit, the Universal Child Care Benefit, and Working Income Tax Benefit advance payments as well as a range of ongoing benefits and one-time payment of programs on behalf of the provinces and territories, and other federal government departments.

$3.7M in expenses will be used to support the CRA's third strategic outcome: Taxpayers and benefit recipients receive an independent and impartial review of their service-related complaints with the Taxpayers' Ombudsman activity.

Finally, $1,137.6M in expenses will be used in support of internal services. Internal services activities are those that apply across the organization and not to a specific program. These include activities such as Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Travel and Other Administrative Services.

The chart below outlines the CRA's future-oriented total non-tax revenues for 2013-2014. It is projected that total non-tax revenues will be $517.0M for the coming fiscal year, after excluding the revenues to be earned on behalf of Government ($68.2M). Prior to excluding these $68.2M in revenues, the majority of non-tax revenues ($323.2M) are comprised of revenues credited to Vote 1 and are expected to be generated from the administration of the Employment Insurance Act ($181.4M) and the Canada Pension Plan ($141.8M). The next category amounts to $193.8M for non-tax revenues available for spending, which are expected to come from service fees ($64.9M), administration fees for provinces and territories ($124.7M), and other miscellaneous respendable revenues ($4.2M). Non-tax revenues not available for spending total $68.2M and will stem from the recovery of employee benefit costs relating to non-tax revenues credited to Vote 1 and revenues available for spending ($66.7M) as well as other miscellaneous non-respendable non-tax revenues ($1.5M).

List of supplementary information tables

All electronic supplementary information tables listed in the 2013-2014 Reports on Plans and Priorities can be found on the CRA website: http://www.cra-arc.gc.ca/rppe/

Details on transfer payment programs
Greening government operations
Sources of respendable and non-respendable revenue
Summary of capital spending by program activity
Upcoming internal audits and evaluations over the next three fiscal years
User fees

Tax expenditures and evaluation report

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 Evaluations publication. The tax measures presented in the Tax Expenditures and Evaluations publication are the sole responsibility of the Minister of Finance.

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