2013-14 Report on Plans and Priorities

Statement of management responsibility

We have prepared the accompanying future-oriented financial statements of the Canada Revenue Agency (CRA) according to the accounting principles consistent with those applied in preparing the financial statements of the Government of Canada. Significant accounting policies are set out in Note 4 to the financial statements. The future-oriented financial statements are submitted for Part III of the Estimates (Report on Plans and Priorities). The information will also be presented in the CRA's Departmental Performance Report to compare with actual results.

Management is responsible for the integrity and objectivity of the information contained in the future-oriented financial statements and for the process of developing assumptions. Assumptions and estimates are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in the CRA's mandate and strategic objectives. Much of the future-oriented financial information is based on these assumptions, best estimates, and judgment and gives due consideration to materiality. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. However, as with all such assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

The actual results achieved for the fiscal years covered in the accompanying future-oriented financial statements will vary from the information presented and the variations may be material.

Approved by:

Andrew Treusch
Commissioner of Revenue and
Chief Executive Officer

Filipe Dinis
Chief Financial Officer and Assistant Commissioner, Finance and Administration

Ottawa, Ontario
February 1, 2013

Canada Revenue Agency
Future-oriented Financial Statements – Agency Activities

Canada Revenue Agency
Future-oriented Statement of Financial Position – Agency Activities
as at March 31
(in thousands of dollars)
2013 2014
LIABILITIES
Accrued salaries 43,461 69,555
Accounts payable and accrued liabilities (Note 6) 168,029 169,682
Vacation pay and compensatory leave 182,878 182,779
Employee severance benefits (Note 7c) 527,316 495,352
Total liabilities 921,684 917,368
Financial assets
Cash 85 85
Due from the Consolidated Revenue Fund 172,004 182,539
Accounts receivable and advances (Note 8) 7,515 7,677
Total financial assets 179,604 190,301
Agency net debt 742,080 727,067
Non-financial assets
Prepaid expenses 13,083 13,214
Tangible capital assets (Note 9) 385,885 404,764
Total non-financial assets 398,968 417,978
Agency net financial position 343,112 309,089
Contingent liabilities (Note 13)
The accompanying notes are an integral part of these future-oriented financial statement.
Canada Revenue Agency
Future-oriented Statement of Operations and Agency Net Financial Position – Agency Activities
for the year ended March 31
(in thousands of dollars)
2013 2014
Expenses (Note 10)
Internal services 1,370,431 1,137,648
Reporting compliance 1,247,166 1,215,133
Assessment of returns and payment processing 740,233 704,900
Accounts receivable and returns compliance 689,107 675,935
Taxpayer and business assistance 368,433 361,730
Appeals 253,992 253,298
Benefit programs 164,643 164,284
Taxpayers' Ombudsman 3,556 3,673
Total expenses 4,837,561 4,516,601
Non-Tax Revenues (Note 11)
Internal services 216,026 212,026
Reporting compliance 25,326 43,779
Assessment of returns and payment processing 56,698 56,112
Accounts receivable and returns compliance 158,285 160,068
Taxpayer and business assistance 55,500 55,721
Appeals 18,161 18,995
Benefit programs 42,597 38,474
Revenues earned on behalf of Government (63,865) (68,209)
Total non-tax revenues 508,728 516,966
Net cost of operations before government funding 4,328,833 3,999,635
Government funding
Net cash to be provided by the Government of Canada 4,106,076 3,601,591
Change in due from the Consolidated Revenue Fund (3,847) 10,535
Services to be provided without charge from other government agencies and departments (Note 12) 428,027 421,532
Total government funding 4,530,256 4,033,658
Operating surplus after government funding (201,423) (34,023)
Agency net financial position - Beginning of year 544,535 343,112
Agency net financial position - End of year 343,112 309,089
The accompanying notes are an integral part of these future-oriented financial statement.
Canada Revenue Agency
Future-oriented Statement of Change in Agency Net Debt – Agency Activities
for the year ended March 31
(in thousands of dollars)
2013 2014
Operating surplus after government funding

(201,423)

(34,023)

Change in tangible capital assets

Acquisition of tangible capital assets (Note 9)

68,520

107,759

Amortization of tangible capital assets (Note 9)

(79,119)

(82,793)

Net loss on disposal/write-off of tangible capital assets

(7,452)

(6,087)

Total change in tangible capital assets

(18,051)

18,879

Change in prepaid expenses

130

131

Net decrease in agency net debt

(219,344)

 (15,013)

Agency net debt - Beginning of year

961,424

742,080

Agency net debt - End of year

742,080

727,067

 The accompanying notes are an integral part of these future-oriented financial statement.
Canada Revenue Agency Future-oriented Statement of Cash Flows – Agency Activities
for the year ended March 31
(in thousands of dollars)
2013 2014
OPERATING ACTIVITIES
Net cost of operations before government funding 4,328,833 3,999,635
Items not affecting cash
Amortization of tangible capital assets (Note 9) (79,119) (82,793)
Net loss on disposal/write-off of tangible capital assets (7,452) (6,087)
Services to be provided without charge from other government agencies and departments (Note 12) (428,027) (421,532)
Change in financial assets other than due from the Consolidated Revenue Fund (859) 162
Change in prepaid expenses 130 131
Change in liabilities 224,050 4,316
Cash used by operating activities 4,037,556 3,493,832
Capital investing activities
Acquisition of tangible capital assets funded by current year appropriations (Note 5b) 67,635 103,985
Acquisition of tangible capital assets not funded by current year appropriations 885 3,774
Cash used by capital investing activities 68,520 107,759
Net cash to be provided by the Government of Canada 4,106,076 3,601,591
The accompanying notes are an integral part of these future-oriented financial statement.

Notes to the Future-oriented Financial Statements – Agency Activities

1. Authority and objectives

The Canada Revenue Agency (CRA) is an agent of Her Majesty in right of Canada under the Canada Revenue Agency Act. The CRA is a departmental corporation named in Schedule II of the Financial Administration Act and reports to Parliament through the Minister of National Revenue.

The mandate of the CRA is to support the administration and enforcement of tax legislation as well as other related legislation. The CRA provides support, advice, and services by:

(a) supporting the administration and enforcement of program legislation;

(b) implementing agreements between the Government of Canada or the CRA and the government of a province, territory, or other public body performing a function of government in Canada to carry out an activity or administer a tax or program;

(c) implementing agreements or arrangements between the CRA and departments or agencies of the Government of Canada to carry out an activity or administer a program; and

(d) implementing agreements between the Government of Canada and First Nations governments to administer a tax.

The CRA collects revenues, including income and sales taxes and employment insurance premiums, administers tax legislation, delivers a number of social benefit programs to Canadians for the federal, provincial, territorial, and First Nations governments, and collects amounts, including Canada Pension Plan contributions, for other groups or organizations. It is responsible for administering and enforcing of the following acts or parts of acts: the Air Travellers Security Charge Act, the Canada Revenue Agency Act, the Children's Special Allowances Act, Part V.1 of the Customs Act, section 2 of the Energy Costs Assistance Measures Act, the Excise Act, the Excise Tax Act (including the goods and services tax (GST) and the harmonized sales tax (HST) except for GST/HST on imported goods), the Excise Act, 2001, the Income Tax Act, the Softwood Lumber Products Export Charge Act, 2006, the Universal Child Care Benefit Act, and others including various provincial acts.

In delivering its mandate, the CRA operates under the following program activities:

(a) Internal services: Provides internal services across the CRA, such as human resources management, financial management and information technology, to support the needs of programs and corporate obligations;

(b) Reporting compliance: Verifies complete and accurate disclosure by taxpayers of all required information to establish tax liabilities;

(c) Assessment of returns and payment processing: Processes and validates taxpayer returns; registers, establishes, and maintains taxpayer accounts and; receives payments;

(d) Accounts receivable and returns compliance: Identifies and addresses non-compliance with taxpayer filing and remittance requirements;

(e) Taxpayer and business assistance: Assists taxpayers in meeting their obligations under the self-assessment;

(f) Appeals: Provides a dispute resolution process for taxpayers who disagree with decisions taken by the CRA;

(g) Benefit programs: Provides Canadians certain income-based benefits, credits and other services on behalf of federal, provincial (except Québec), and territorial governments;

(h) Taxpayers' Ombudsman: Addresses requests for reviews made by taxpayers and benefit recipients with respect to service matters.

2. Underlying Assumptions

These future-oriented financial statements have been prepared:

(a) based on information known as at December 31, 2012;

(b) on the basis of government policies, government priorities, and external environment at the time the future-oriented financial information was finalized;

(c) according to the requirements of Treasury Board Accounting Standards which are based on Canadian public sector accounting standards;

(d) on the basis that the resources provided will enable the CRA to deliver the expected results specified in the Report on Plans and Priorities;

(e) on the basis of historical costs.

3. Variations and changes to the forecasted financial Information

While every attempt has been made to accurately forecast final results of 2012-2013 and 2013-2014, actual results are likely to vary from the forecast information presented, and this variation could be material.

The CRA will not be updating the forecasts for any changes to appropriations or forecast financial information made in ensuing supplementary estimates. Variances will be explained in the Departmental Performance Report.

4. Summary of significant accounting policies

For financial reporting purposes, the CRA's activities have been divided into two sets of financial statements: agency activities and administered activities. The Financial Statements - Agency Activities include those operational revenues and expenses which are managed by the CRA and utilized in running the organization. The Financial Statements - Administered Activities include those revenues and expenses that are administered on behalf of the federal, provincial, and territorial governments, First Nations, and other organizations. The purpose of the distinction between agency and administered activities is to facilitate, among other things, the assessment of the administrative efficiency of the CRA in achieving its mandate. No future-oriented financial statements were prepared for administered activities because it is analogous to information presented by the Department of Finance.

These future-oriented financial Statements - Agency Activities have been prepared using accounting principles consistent with those applied in the preparation of the financial statements of the Government of Canada. The accounting principles used are based on Canadian public sector accounting standards. A summary of significant accounting policies follows:

(a) Parliamentary appropriations

The CRA is financed by the Government of Canada through Parliamentary appropriations. Accounting for appropriations provided to the CRA does not parallel financial reporting according to Canadian public sector accounting standards, as they are based in large part on cash flow requirements. Consequently, items recognized in the Future-oriented Statement of Financial Position and the Futures-oriented Statement of Operations and Agency Net Financial Position may be different from those provided through appropriations from Parliament. Note 5(b) provides a high-level reconciliation between the two bases of reporting.

(b) Net cash to be provided by the Government of Canada

The CRA operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the CRA is deposited to the CRF and all cash disbursements made by the CRA are paid from the CRF. The net cash to be provided by government is the difference between all respendable cash receipts and all cash disbursements including transactions with departments and agencies.

(c) Forecasted expenses

Expenses are recognized when goods are received and/or services are rendered.

(d) Services to be provided without charge from other government agencies and departments

Estimates of the cost for services to be provided without charge from other government agencies and departments are included in expenses.

(e) Forecasted revenues

Non-tax revenue is recognized when the services are rendered by the CRA.

Non tax revenues that are not available for spending cannot be used to discharge the CRA's liabilities. While management is expected to maintain accounting control, it has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented in reduction of the CRA's gross revenues.

(f) Vacation pay and compensatory leave

Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment. The liability for vacation pay and compensatory leave is calculated at the salary levels in effect at the end of the year for all unused vacation pay and compensatory leave benefits accruing to employees.

(g) Employee future benefits

i) Pension benefits

All eligible employees participate in the Public Service Pension Plan administered by the Government of Canada. The CRA's contributions reflect the full cost as employer. These amounts are currently based on a multiple of an employee's required contributions and may change over time depending on the experience of the Plan. The CRA's contributions are expensed during the year in which the services are rendered and represent the total pension obligation of the CRA. Current legislation does not require the CRA to make contributions with respect to any actuarial deficiencies of the Public Service Pension Plan.

ii) Health and Dental benefits

The Government of Canada sponsors an employee benefit plan (health and dental) in which the CRA participates. Employees are entitled to health and dental benefits, as provided for under labour contracts and conditions of employment. The CRA's contributions to the plan, which are provided without charge by the Treasury Board Secretariat, are recorded at cost based on a percentage of the salary expenses and charged to personnel expenses in the year incurred. They represent the CRA's total obligation to the plan. Current legislation does not require the CRA to make contributions for any future unfunded liabilities of the plan.

iii) Severance benefits

Some employees are entitled to severance benefits, as provided for under labour contracts and conditions of employment. The cost of these benefits is accrued as employees render the services necessary to earn them. These benefits represent an obligation of the CRA that entails settlement by future payments. The obligation resulting from the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the CRA.

(h) Due from the Consolidated Revenue Fund (CRF)

Amounts due from the CRF are the result of timing differences between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the CRA is entitled to draw from the CRF without further authorities to discharge its liabilities.

(i) Accounts receivable and advances

Accounts receivable and advances are stated at the lower of cost and net recoverable value. An allowance for doubtful accounts is recorded where recovery is considered uncertain.

(j) Tangible capital assets

All costs of $10,000 or more incurred by the CRA to acquire or develop tangible capital assets are capitalized and amortized over the useful lives of the assets. Similar items under $10,000 are expensed.

Tangible capital assets are amortized on a straight-line basis over the estimated useful lives of assets as follows:

Asset class Useful life
Machinery, equipment, and furniture 10 years
In-house developed software 5-10 years
Vehicles and other means of transportation 5 years
Information technology equipment 5 years
Purchased software

3 years

Assets under construction/development are not amortized until completed and put into operation.

(k) Contingent liabilities

Contingent liabilities are potential liabilities that may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable, the CRA's best estimate of the contingency is disclosed in the notes to the financial statements.

(l) Measurement uncertainty

The preparation of the future-oriented financial information requires management to make estimates and assumptions that affect the amounts of assets, liabilities, revenues and expenses reported in the future-oriented financial statements. Assumptions are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. Nonetheless, as with all such estimates and assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

5. Parliamentary appropriations

The CRA receives most of its funding through annual Parliamentary appropriations. Items recognized in the Future-oriented Statement of Financial Position and the Future-oriented Statement of Operations and Agency Net Financial Position in one year may be funded through Parliamentary appropriations in prior, current, or future years. Accordingly, the CRA has different net results of operations for the year on a government funding basis than on an accrual accounting basis. These differences are reconciled below.

a) Reconciliation of Parliamentary appropriations to be provided and used:

(in thousands of dollars)
2013 2014
Parliamentary appropriations — to be provided:
Vote 1 - Operating expenditures, contributions and recoverable expenses on behalf of the Canada Pension Plan and the Employment Insurance Act 3,507,920 3,039,746
Vote 5 - Capital expenditures 83,433 73,082
Spending of revenues received through the conduct of its operations pursuant to section 60(2) of the Canada Revenue Agency Act 185,679 193,779
Statutory expenditures:
Contributions to employee benefits plans 456,440 442,878
Disbursements to provinces under the Softwood Lumber Products Export Charge Act, 2006 (Footnote 1) 280,000 283,000
Children's Special Allowance payments (Footnote 1) 233,000 238,000
Minister of National Revenue - Salary and motor car allowance 78 79
4,746,550 4,270,564
Less:
Appropriations available for future years (Footnote 2) - Vote 5 (30,992) (18,972)
Expenditures related to Administered Activities (Footnote 1) (513,000) (521,000)
(543,992) (539,972)
Total Parliamentary appropriations to be used 4,202,558 3,730,592

(Footnote 1) In accordance with the division of activities for financial reporting purposes outlined in Note 4, the payments under the Softwood Lumber Products Export Charge Act, 2006, and the Children's Special Allowances Act are reported as federal administered expenses on the Statement of Administered Expenses and Recoveries of the CRA's Financial Statements - Administered Activities.

(Footnote 2) Pursuant to section 60(1) of the Canada Revenue Agency Act, the balance of money appropriated by Parliament for the use of the CRA that remains unexpended at the end of the fiscal year lapses at the end of the following fiscal year.

b) Reconciliation of net cost of operations before government funding to total Parliamentary appropriations to be used:

(in thousands of dollars)
2013 2014
Net cost of operations before government funding 4,328,833 3,999,635
Expenses not requiring use of current year appropriations:
Amortization of tangible capital assets (Note 9) (79,119) (82,793)
Loss on disposal/write-off of tangible capital assets (7,452) (6,087)
Services to be provided without charge from other government agencies and departments (Note 12) (428,027) (421,532)
Other (69,956) (59,243)
(584,553) (569,655)
Changes to non financial assets affecting appropriations:
Tangible capital assets acquisitions 67,635 103,985
Variation in prepaid expenses (130) (131)
67,505 103,854
Changes in future funding requirements:
Employee severance benefits 204,997 31,964
Salary, vacation pay and compensatory leave 99 (28,985)
205,096 2,979
Non-tax revenues available for spending 185,678 193,779
Total Parliamentary appropriations to be used 4,202,558 3,730,592

6. Accounts Payable and accrued liabilities

(in thousands of dollars)
2013 2014
Accounts Payable and accrued liabilities - Related parties 44,118 44,560
Accounts Payable and accrued liabilities - External 123,911 125,122
168,029 169,682

7. Employee future benefits

(a) Pension benefits

The CRA and all eligible employees contribute to the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of two percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to the inflation.

Both the CRA and employees contribute to the Public Service Pension Plan. The yearly expense for the CRA's contributions represents approximately 1.8 times the contributions by employees. The contributions to the Public Service Pension Plan for the forecasted years are expected to be as follows:

(in thousands of dollars)
2013 2014
CRA's contributions 325,898 315,982
Employees' contributions 191,518

196,263

The CRA's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada.

(b) Health and Dental benefits

The CRA contributes for all eligible employees to the Public Service Health Care Plan and Public Service Dental Care Plan, which are sponsored by the Government of Canada.

The CRA's responsibility with regard to these plans is limited to its contributions (refer to Note 12). Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada.

(c) Severance benefits

The CRA provides severance benefits to its employees based on eligibility, years of service and salary upon termination. These severance benefits are not pre-funded with assets supporting the obligations, resulting in a deficit equal to the accrued benefit obligations. Benefits will be paid from future appropriations. Information about the severance benefits, measured at the time of preparation of these statements, is as follows:

(in thousands of dollars)
2013 2014
Employee severance benefits, beginning of year 732,313 527,316
Cost for the year 13,278 3,112
Benefits to be paid during the year (218,275) (35,076)
Employee severance benefits, end of year 527,316

495,352

8. Accounts receivable and advances

(in thousands of dollars)
2013 2014
Accounts receivable - Related parties 3,720 3,757
Accounts receivable - External 554 560
Advances to employees 1,368 1,415
Salary overpayments 2,666 2,756
8,308 8,487
Less: Allowance for doubtful accounts (793) (811)
Total accounts receivable and advances 7,515 7,677

9. Tangible capital assets

(in thousands of dollars)
Cost - 2013-2014
Opening balance Acquisitions Disposals Closing balance
Tangible capital Asset Class
Machinery, equipment and furniture 10,551 54 1,832 8,773
Software (purchased and in-house developed and/or in development) 762,500 106,518 9,557 859,461
Vehicles and other means of transportation 2,215 13 - 2,228
Information technology equipment 18,301 1,174 2,791 16,684
Total 793,567 107,759 14,180

887,146

(in thousands of dollars)
Accumulated amortization - 2013-2014
Opening balance Amortization expense Disposals Closing balance
Tangible capital Asset Class
Machinery, equipment and furniture 6,006 2,140 1,443 6,703
Software (purchased and in-house developed and/or in development) 383,683 79,125 4,496 458,312
Vehicles and other means of transportation 1,736 337 - 2,073
Information technology equipment 16,257 1,191 2,154 15,294
Total 407,682 82,793 8,093

482,382

(in thousands of dollars)
2013 Net book value 2014 Net book value
Tangible capital Asset Class
Machinery, equipment and furniture 4,545 2,070
Software (purchased and in-house developed and/or in development) 378,817 401,149
Vehicles and other means of transportation 479 155
Information technology equipment 2,044 1,390
Total 385,885 404,764

The cost of software in development, which is not amortized, is $188,517,255 as at March 31, 2014 ($130,622,538 as at March 31, 2013).

10. Segmented information - Expenses

The following table presents the expenses by program activity and expense category as described in Note 1 of these Future-oriented financial statements.

(in thousands of dollars)
Internal services Reporting compliance Assessment of returns and payment processing Accounts receivable and returns compliance Taxpayer and business assistance
Personnel:
Salaries 497,153 742,618 332,176 399,204 219,450
Other allowances and benefits (including employee benefits described in Note 7c) 187,413 281,985 123,218 157,740 86,167
684,566 1,024,603 455,394 556,944 305,617
Accommodation 68,232 106,804 45,583 59,450 32,553
Professional and business services 198,001 24,507 22,769 16,375 6,958
Transportation and communications 58,577 25,795 28,764 17,545 6,936
Federal sales tax administration costs by the Province of Québec - - 113,000 - -
Repair and maintenance 20,802 16,699 18,628 11,360 4,490
Amortization of capital assets (Note 9) 72,120 865 6,907 816 602
Equipment purchases 8,224 3,407 3,854 2,420 966
Other services and expenses 1,659 634 704 430 169
Materials and supplies 12,089 5,322 5,935 3,620 1,431
Advertising, information and printing services 6,819 360 402 245 97
Loss on disposal/write-off of capital assets 2,346 32 327 3,330 49
Equipment rentals 4,213 6,105 2,633 3,400 1,862
Total 1,137,648 1,215,133 704,900 675,935 361,730
(in thousands of dollars)
Appeals Benefit programs Taxpayers' Ombudsman 2014 2013
Personnel:
Salaries 106,181 86,308 1,974 2,385,064 2,428,130
Other allowances and benefits (including employee benefits described in Note 7c) 41,248 29,900 786 908,457 934,430
147,429 116,208 2,760 3,293,521 3,362,560
Accommodation 15,652 11,229 298 339,801 337,558
Professional and business services 51,231 10,660 205 330,706 390,814
Transportation and communications 18,666 11,939 193 168,415 203,706
Federal sales tax administration costs by the Province of Québec - - - 113,000 148,326
Repair and maintenance 12,085 7,726 125 91,915 109,509
Amortization of capital assets (Note 9) 207 1,276 - 82,793 79,119
Equipment purchases 2,564 1,672 27 23,134 52,265
Other services and expenses 457 293 5 4,351 5,052
Materials and supplies 3,851 2,463 40 34,751 41,699
Advertising, information and printing services 261 167 3 8,354 11,917
Loss on disposal/write-off of capital assets - 3 - 6,087 7,452
Equipment rentals 895 648 17 19,773 87,584
Total 253,298 164,284 3,673 4,516,601

4,837,561

11. Segmented information- Non-tax revenues

The following table presents the revenues generated by program activity and revenue category as described in Note 1 of these Future-oriented financial statements.

(thousands of dollars)
Internal services Reporting compliance Assessment of returns and payment processing Accounts receivable and returns compliance Taxpayer and business assistance
Non-tax revenues credited to Vote 1
Fees for administering the Employment Insurance Act 57,672 - 11,072 74,235 28,419
Fees for administering the Canada Pension Plan 46,994 - 15,937 60,254 15,508
104,666 - 27,009 134,489 43,927
Non-tax revenues available for spending
Services fees 62,075 128 2,152 88 178
Administration fees - provinces and territories 35,100 34,891 15,382 812 1,913
Miscellaneous respendable revenues 1,971 1,624 97 - 519
99,146 36,643 17,630 901 2,610
Non-tax revenues not available for spending
Recovery of employee benefit costs relating to non-tax revenues credited to Vote 1 and revenues available for spending 7,389 7,136 11,473 24,678 9,184
Miscellaneous non-tax revenues 825 - - - -
8,214 7,136 11,473 24,678 9,184
Total non-tax revenues before revenues earned on behalf of Government 212,026 43,779 56,112 160,068 55,721
Revenues earned on behalf of Government (8,214) (7,136) (11,473) (24,678) (9,184)
Total non-tax revenues 203,812 36,643 44,639 135,389 46,537
(thousands of dollars)
Appeals Benefit programs 2014 2013
Non-tax revenues credited to Vote 1
Fees for administering the Employment Insurance Act 9,654 377 181,429 180,505
Fees for administering the Canada Pension Plan 3,065 - 141,758 142,545
12,719 377 323,187 323,050
Non-tax revenues available for spending
Services fees - 258 64,879 70,267
Administration fees - provinces and territories 3,046 33,535 124,679 111,087
Miscellaneous respendable revenues - 10 4,221 4,324
3,046 33,803 193,779 185,678
Non-tax revenues not available for spending
Recovery of employee benefit costs relating to non-tax revenues credited to Vote 1 and revenues available for spending 2,586 4,294 66,740 62,395
Miscellaneous non-tax revenues 644 - 1,469 1,470
3,230 4,294 68,209 63,865
Total non-tax revenues before revenues earned on behalf of Government 18,995 38.474 585,175 572,593
Revenues earned on behalf of Government (3,230) (4,294) (68,209) (63,865)
Total non-tax revenues 15,765 34,180 516,966 508,728

12. Related party transactions

The CRA is related in terms of common ownership to all Government of Canada departments, agencies, and Crown corporations. Transactions with Crown corporations entered into by the CRA are in the normal course of business and on normal trade terms applicable to all individuals and enterprises. Transactions with other Government of Canada departments and agencies are conducted on a cost recovery basis.

The CRA is expected to receive various services without charge from other government agencies and departments in the coming years. The estimated costs for significant services to be provided without charge that have been recorded include:

(thousands of dollars)
2013 2014
Employer's contribution to the employee benefit plan (health and dental) - Treasury Board Secretariat 215,444 211,771
Information technology services - Shared Services Canada 167,493 167,318
Legal services - Justice Canada 36,850 34,644
Payroll services - Public Works and Government Services Canada 4,320 4,142
Audit services - Office of the Auditor General of Canada 2,490 2,430
Workers' compensation benefits - Human Resources and Skills Development Canada 1,490 1,227
Total 428,027

421,532

13. Contingent liabilities

The CRA is a defendant in certain cases of pending and threatened litigation which arose in the normal course of operations. The current best estimate of the amount to be paid in respect of the cases identified as likely to be lost has been recorded in Accounts payable and accrued liabilities. All other cases, excluding those assessed as unlikely to be lost, are considered contingent liabilities and the related amounts are disclosed whenever the amount of the contingency can be reasonably estimated. At the time of preparation of these statements, contingent liabilities for claims and pending and threatened litigation have been estimated at $37,772,645.

Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: