2015-16 Report on Plans and Priorities
Section 2: Analysis of programs by strategic outcome
Program: Assessment of returns and payment processing
The assessment of returns and payment processing program assesses and processes tax returns and payments for individuals and businesses as quickly and accurately as possible, providing taxpayers with early certainty to help them manage their tax affairs with confidence. We aim to reduce red tape by providing streamlined and timely services to individuals and businesses while securing Canada's revenue base.
Budgetary financial information
| 2015-2016 Main Estimates |
2015-2016 planned spendingFootnote1,Footnote 2 |
2016-2017 planned spendingFootnote1,Footnote 2 |
2017-2018 planned spendingFootnote1,Footnote 2 |
|---|---|---|---|
| 614,590,330 | 614,590,330 | 605,246,609 | 596,586,054 |
Human resources
| 2015-2016 | 2016-2017 | 2017-2018 |
|---|---|---|
| 6,415 | 6,192 | 6,148 |
Performance measurements
| Indicators | Targets | Date to be achieved |
|---|---|---|
| Percentage of service standards targets met relating to timeliness of processing for individual, business, and GST/HST returns | 100% | March 2016 |
Planning highlights
The CRA's wide range of e-services has become the preferred service channel for many taxpayers: over 80% of individuals file their tax return online. The CRA's secure portals—My Account for individuals, My Business Account for businesses, and Represent a Client for tax intermediaries—allow taxpayers and their representatives to check information and carry out a wide range of transactions at their convenience. E-services help the CRA to issue refunds faster, and reduce the overall cost of tax administration through lower processing and mailing costs.
The CRA is making information and e-services accessible from mobile devices. The Agency's first mobile application for businesses, released in 2014, lets users create reminders for instalment payments, returns, and remittances to better manage their tax affairs. In 2015, the CRA will release a mobile application allowing individuals to access basic tax information such as notices of assessment. Mobile apps are the next step in the Agency's drive to find better ways to deliver convenient and cost-effective tax and benefit services to Canadians.
Over 80% of individuals filed their tax return online.
The CRA does not compromise the security of taxpayer information in the delivery of e-services. Innovative approaches help the Agency meet both security and convenience expectations. For example, the CRA is simplifying registration for My Account by introducing a two-tier authentication process. The first tier will allow users secure, limited access to services and information in My Account, including refund status, tax free savings account and RRSP limits, and an abbreviated version of the electronic T1 notice of assessment. The second tier will grant secure access to all of the My Account services and electronic delivery of the detailed T1 notice of assessment, but will require users to go through the full My Account registration process.
The CRA is introducing a new online mail service in 2015 to reduce the volume of correspondence delivered by conventional mail. Taxpayers who opt in for the new Manage Online Mail service will be notified by email that they have new correspondence to view in My Account. This convenient e-delivery service will ensure taxpayer information is secure and protected.
The CRA will continue to work with commercial tax software developers to improve tax-filing software. In 2015, the Agency will launch a tax data delivery service through which authorized tax representatives using CRA-certified software products (EFILE) with the tax data delivery option will be able to populate parts of an income tax and benefit return with information from the CRA. The service will provide such information as T4 and universal child care benefit statements. Over time, this option will be expanded to include individuals using NETFILE-certified software products. The automated population of tax forms using data available from the CRA will make it easier for taxpayers to file and will increase accuracy by reducing errors made during manual data entry.
Subprogram: Individual returns and payment processing
The individual returns and payment processing subprogram helps individuals to voluntarily comply with Canada's tax laws by processing their information and payments as quickly and accurately as possible. We assess and validate the information they provide and inform them of the results of their assessment or reassessment.
Budgetary financial information
| 2015-2016 planned spending Footnote3 |
2016-2017 planned spending Footnote3 |
2017-2018 planned spending Footnote3 |
|---|---|---|
| 320,303,789 | 316,787,161 | 308,773,907 |
Human resources
| 2015-2016 | 2016-2017 | 2017-2018 |
|---|---|---|
| 4,344 | 4,265 | 4,226 |
Performance measurements
| Indicators | Targets | Date to be achieved |
|---|---|---|
| Percentage of service standards targets met relating to T1 individual and T3 trust returns activities | 100% | March 2016 |
| Percentage of individual (T1) returns processed accurately | 98% | March 2016 |
| Percentage of individual (T1) returns received on time processed by mid-June | 98% | March 2016 |
| Indicators | Targets | Date to be achieved |
|---|---|---|
| Individual (T1) electronic filing rates (tax-filing season) | 82% | March 2016 |
| Indicators | Targets | Date to be achieved |
|---|---|---|
| Ratio of average dollar value assessed for targeted versus random reviews | Minimum ratio of 2:1 | March 2016 |
| Percentage of planned validation reviews of individual returns (T1) completed | 100% | March 2016 |
Planning highlights
The CRA assesses more than 28 million individual returns annually. Assessment includes determining the status of an individual's tax obligations, finding and fixing errors, informing taxpayers of taxes owing, and paying refunds. Electronic filing accelerates the processing of returns and payments and is also less costly than traditional paper options. The CRA's error checking typically finds more than $1 billion in non-compliance, and the Agency identifies more than $100 million in beneficial adjustments annually.
The CRA assesses more than 28 million individual returns annually.
Deliverables
The CRA will:
- Launch a mobile app enabling individual taxpayers to view an abbreviated notice of assessment, RRSP deduction limit, and tax-free savings account contribution room in 2015.
- Launch e-delivery of T1 notices of assessment in 2015, with the goal of making 80% of correspondence available online within two years.
- Accept additional prior-year returns through EFILE and NETFILE by February 2016.
- Expand the Tax Data Delivery service to individuals using NETFILE-certified software products by February 2016.
- Continue to move forward on the T1 Systems Redesign project to modernize the CRA personal income tax assessing and accounting systems for completion in 2019-2020. This initiative will make sure there is a strong, flexible, and resilient foundation for the T1 Program. Modernized systems will also assist with the introduction of future service improvements.
- Encourage use of direct deposit to ensure timely receipt of refunds and benefits.
Red tape reduction for small and medium enterprises
The CRA is committed to reducing red tape and making it easier for individuals and small- and medium-sized enterprises (SMEs) to access CRA services and fulfil their tax obligations. Canada-wide Red Tape Reduction consultations conducted in the fall of 2014 will be instrumental in shaping the CRA's Red Tape Reduction action plans for the next three years. The Agency will continue to develop strategies for reducing the time businesses spend on taxes so they can get on with the task of creating jobs and growing the economy.
Planning highlights
The CRA will:
- Continue to expand the Submit Document service to new workloads for GST/HST Registrants by April 2015.
- Improve the online Business Registration service to streamline the process and make it easier for businesses to register by April 2015.
- Include a payment option within GST NETFILE for business taxpayers by October 2015.
- Introduce e-filing for Form T1135, Foreign Income Verification Statement, for corporations by 2016-2017.
- Report the results of the Canada-wide Red Tape Reduction consultations in the spring of 2015. The CRA will develop and implement red tape action plans based on the consultation report.
- Make all payments by direct deposit for taxpayers who have signed up for one or more CRA payments by this method, to ensure secure, fast, convenient and cost-effective service.
Subprogram: Business returns and payment processing
The business returns and payment processing subprogram helps businesses to voluntarily comply with Canada's tax laws by processing their information and payments as quickly and accurately as possible. We assess and validate the information they provide and inform them of the results of their assessment or reassessment. We register businesses for a business number and administer T2, GST/HST, excise and other levies programs.
Budgetary financial information
| 2015-2016 planned spending |
2016-2017 planned spending |
2017-2018 planned spending |
|---|---|---|
| 294,286,541 | 288,459,448 | 287,812,147 |
Human resources
| 2015-2016 | 2016-2017 | 2017-2018 |
|---|---|---|
| 2,071 | 1,927 | 1,922 |
Performance measurements
| Indicators | Targets | Date to be achieved |
|---|---|---|
| Percentage of service standards targets met relating to business taxfilers (T2, GST/HST, excise and other levies) activities | 100% | March 2016 |
| Percentage of T2 returns processed accurately | 98% | March 2016 |
| Indicators | Targets | Date to be achieved |
|---|---|---|
| Corporation (T2) electronic filing rates (fiscal year) | 85% | March 2016 |
| Indicators | Targets | Date to be achieved |
|---|---|---|
| Percentage of payments to the Receiver General deposited within 24 hours of receipt | 96% | March 2016 |
Planning highlights
Businesses and their tax representatives are extensive users of the CRA's e-services: the vast majority of corporation income tax returns and GST/HST returns are filed electronically. Also, more than 1.9 million businesses are enrolled in My Business Account, the Agency's online portal for business. E-services provide an opportunity to interact electronically with the CRA on various business accounts and are convenient, easy to use, fast, and secure.
More than 1.9 million businesses are enrolled in My Business Account.
The CRA also maintains Canada's Business Number System. A business number is a unique client identifier given to a business to help simplify its dealings with federal, provincial/territorial, aboriginal, and municipal governments. The system is based on the idea of one business, one number, and it is a key enabler of red tape reduction.
Deliverables
The CRA will:
- Improve the online Business Registration service to streamline the process and make it easier for businesses to register by April 2015.
- Improve the systems supporting the Business Number Program to enhance integrity by 2018-2019.
- Include a payment option within GST NETFILE for business taxpayers by October 2015.
- Expand the Submit Documents service to the GST/HST Returns and Rebates program, the Canada Pension Plan and Employment Insurance Rulings program and the T2 Audit programs, by October 2016.
- In collaboration with Industry Canada, develop a business number strategic adoption plan to promote using the Business Number System to strengthen federal programs and provincial and territorial partnerships.