Report on Plans and Priorities 2016-17

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Section 2: Analysis of Programs by Strategic Outcome

Program: Taxpayer and Business Assistance

Tax Information Services and Assistance

Planning highlights

The CRA answers several million information requests each year, primarily through its website and by telephone. In 2014-2015, the CRA website received 157 million visits, and the Agency answered 17.1 million phone enquiries. Another 6.4 million calls related to benefits enquiries were answered through agents and automated phone services. By continually modernizing its information services, the CRA aims to make it easier for taxpayers to understand and comply.

The CRA will:

• review and revise key elements of the CRA's plain language correspondence with taxpayers to make sure it is easily understood. The Agency will launch new print and electronic versions of the following: T1 (individual) forms by February 2016; benefits statements by May 2016; PD7A, Statement of Account for Current Source Deductions, by May 2016; and business forms (T2 and GST/HST) by October 2016.
• eliminate the need for callers to repeat authentication information when they are transferred to another CRA agent. Enhanced tools will allow agents who are transferring a call to indicate if they have already completed the authentication process with the caller. Scheduled for completion in spring 2016.
• move the CRA's call centres to a common hosted platform as part of the federal government's Contact Centre Transformation initiative. This technology could enable the CRA to offer new features as early as 2016-2017, and completion is scheduled for 2020.
• implement a "call driver strategy" to better understand the most common reasons taxpayers call, and set up more ways to meet their information needs. Each program area will get information on call drivers in their area, which will help them develop action plans to reduce the need for calls. Call volumes will be monitored to determine the impact of new initiatives. Implementation is scheduled for 2017-2018.
• migrate CRA website content over to the central Canada.ca government information site, effectively joining the federal government's web renewal initiative to offer Canadians a "one-stop shop" for all government-related information. Content migration is scheduled for completion by June 2016, and decommissioning of the CRA's URL and web platforms will take place by December 2016.

Charities

Planning highlights

Charities play a valuable role in society and contribute to public debate and public policy on behalf of all Canadians. To support this contribution and to ensure charities understand their obligations under the law, the CRA will review and clarify the rules governing a registered charity's involvement in political activities, in collaboration with the charitable sector.

Canadians donate billions of dollars each year to support registered charities, and they expect their donations to be used appropriately to benefit the intended causes. To safeguard the interests of taxpayers and, at the same time, help charities meet their legal obligations under the Income Tax Act, the CRA will introduce new service options for charities.

The CRA will:

• modernize its information technology systems to reduce the administrative burden on charities by setting up new electronic service options. The following new services will make it easier for organizations to register and fulfill their obligations on time each year:
  • online applications for charitable registration, available November 2017.
  • electronic filing of the annual Registered Charity Information Return (T3010), available November 2018.

Registered Plans

Planning highlights

Canadians who rely on registered plans to help them secure income for the future depend on the CRA to protect taxpayer investments. The Agency strives to make sure registered plans comply with legislative requirements and, at the same time, reduce the administrative burden on plan administrators by enabling new electronic service options.

The CRA will:

• increase the number of registered plan-related forms accessible electronically by March 2018.
• explore opportunities for receiving supporting documentation electronically, along with plan-related forms, by March 2019.

Policy, Rulings, and Interpretations

Planning highlights

Taxpayers, businesses, tax professionals, and industry associations depend on the CRA for current and accurate technical tax information. The CRA will continue to update initiatives and introduce new ones designed to provide early certainty on tax matters, help prevent errors and, in some cases, reduce the number of individual requests for rulings.

The CRA will:

• develop a rulings e-service to allow clients to send requests for rulings and interpretations and receive responses electronically. This service will become available in 2017.
• develop the tools necessary to implement the Common Reporting Standard by July 1, 2017 and complete the first exchange of information by September 2018. The Common Reporting Standard is a global standard for the automatic exchange of financial account information between countries to better fight tax evasion and improve tax compliance. Foreign tax authorities will provide information to the CRA relating to financial accounts in their jurisdictions held by Canadian residents. The CRA will, on a reciprocal basis, provide corresponding information to the foreign tax authorities on accounts in Canada held by residents of foreign jurisdictions.
• develop Income Tax Folios, which are key tools for interpreting income tax information and education, thereby leading to increased compliance. Hundreds of thousands of taxpayers, tax professionals, CRA officials, and other members of the tax community refer to folios throughout the year.

Performance Measurement

Program: Assessment of Returns and Payment Processing

Individual Returns

Planning highlights

The CRA is improving service to taxpayers by expanding its range of digital services which are making it easier for Canadians to do their self-assessments and voluntarily comply with their tax obligations. Over the planning period, the CRA will implement its e-interactions strategy and the following initiatives will contribute to making CRA services user-centric, secure, and digital from beginning to end.

The CRA will:

• accept T3 special tax returns electronically through InfoDec¹ as of January 2016. This initiative will improve client service by introducing the first electronic filing service for those filing T3 returns on behalf of trusts.
• enable T1 filers to change their address using the NETFILE certified software products by February 2017.
• improve secure online portals My Account and Represent a Client to make these portals easier for taxpayers and their representatives to use, while preparing for future program growth and advances in technology. Improvements will include a more seamless and logical navigation between services, a common user interface for the portals, and correct portal content display on any device. Options and analysis phase to be completed in spring 2016.

Service innovations

The CRA's service innovations are making it easier for clients to complete returns online and avoid common errors made during manual data entry. During the 2015 tax filing season, the Agency implemented the Tax Data Delivery (or Auto-fill my return) service, allowing authorized representatives, using EFILE certified software, to request the secure electronic transmission of tax information from the CRA to automatically fill in parts of their clients' tax return.

In February 2016, the service will be available to individuals, who are fully registered for My Account, to automatically populate parts of their returns when using a NETFILE certified software. The service will also expand the list of tax information that is available to include, among others, T3 and T5 information slips.

Business Returns

Planning highlights

The CRA's digital services are the preferred service channel for businesses and tax representatives—86% of corporation returns were filed online in 2014-2015. The Agency is adding new features and services to simplify and streamline processes and make it easier for businesses to get timely information and comply with tax obligations.

The CRA will:

• improve secure online portals My Business Account and Represent a Client to make these portals easier for taxpayers and their representatives to use, while preparing for future program growth and advances in technology. Improvements will include enabling a more seamless and logical navigation between services, a common user interface for the portals, and correct portal content display on any device. Options and analysis phase to be completed in spring 2016.
• expand the Submit Documents service to include the GST/HST Rebates program, by December 2016. This service allows taxpayers to submit documents (when the CRA asks for them) through the secure portals.
• work with Industry Canada on adopting the business number (BN) as the common identifier for federal business-facing programs and services. This initiative will be completed by October 2018 and will reduce duplication of effort by businesses and government administration, while enabling future opportunities for client-centric service design and delivery.

Payments

Planning highlights

The CRA will improve electronic payments and related digital services, which are more efficient for taxpayers and for CRA stakeholders such as financial institutions.

The CRA will:

• expand the current Interac payment options to include payment by Visa Debit in My Payment, to be implemented by February 2016.
• facilitate e-payments by working with financial institutions to convert their payments to Electronic Data Interchange (EDI). By May 2016, the CRA will change the name on the remittance vouchers for individuals, TFSAs, and benefits.

Voluntary Disclosures Program

Planning highlights

A significant portion of the $1.3 billion in unreported income disclosed through voluntary disclosure in 2014-2015 was a result of continued successful international efforts to share tax data and the CRA's increased efforts to detect and correct offshore non-compliance. The program is a cost-effective way for the Agency to obtain compliance. The following initiatives will make it easier for taxpayers to come forward voluntarily, correct their tax affairs, and pay their fair share.

The CRA will:

• enable electronic filing of voluntary disclosures, including allowing taxpayers and their representatives to send their disclosure through CRA portals by October 2016.

Performance Measurement

Program Reporting Compliance

International and Large Business

Planning highlights

The CRA will continue to implement strategies to combat tax avoidance by international and large businesses. The Agency uses specialist audit teams, business intelligence, informants, and behavioural economics approaches to "nudge" or influence compliance by international and large businesses. Nudge approaches include writing letters to these businesses before a decision to audit is made, advising them of common errors and allowing them the opportunity to correct mistakes. Meanwhile, the following initiatives will help to protect law-abiding businesses and the integrity of Canada's tax base.

The CRA will:

• fully implement the Integrated Risk Assessment System by June 2016, which will put in place an automated risk scoring system to complement our National Risk Assessment Model. The new system links information from various CRA databases and checks it against comprehensive risk algorithms resulting in automatic risk assessment for each large file. This process will allow the Agency to more effectively use compliance resources when assigning files to regions.
• implement the business intelligence component of the Foreign Reporting Requirements Management System by March 2017. The system was developed to capture, store, and retrieve information relating to CRA's foreign reporting requirements. The Agency will continue to build on its collaborative arrangements with international partners; this includes the mutual exchange of data with banks and other tax authorities.
• collaborate with other tax jurisdictions on other forms of non-compliance and enhance our work on joint audits with other countries.
• fully implement our Integrated Large Business Audit Teams by April 2016. These teams include specialist auditors with knowledge in domestic and aggressive international tax planning. The integrated teams enhance collaboration and lessen the burden to the taxpayer. They provide better service under the concept of "One Team, One Voice, One Audit".

Offshore non-compliance

The Agency dedicates a wide range of initiatives to reducing offshore non-compliance which presents a complex challenge for all tax administrations around the world. Offshore non-compliance is driven by factors such as globalization, the easy movement of people and money across borders, and the growth of electronic commerce.

The Offshore Compliance Division, established in 2013, leads the Agency's approach in implementing and administering measures to address offshore non-compliance, including the use of improved risk assessment systems and business intelligence.

The CRA will:

• expand the use of offshore business intelligence to identify files for offshore audit by December 2016. In this regard, the Agency will be analyzing Electronic Funds Transfer (EFT) data jurisdiction by jurisdiction and will be contacting taxpayers with large volumes of unexplained financial transactions.
• develop predictive and strategic analytics solutions to generate business intelligence by March 2017.
• implement a workload development strategy to better identify aggressive tax planning arrangements and provide appropriate solutions and remedies by April 2016. The Agency will continue to include research and risk assessment, audit, legislative change, education, and awareness tools to counter aggressive tax planning.

International cooperation

The CRA is playing a leadership role through its work with other tax administrations and international bodies as part of its strategy to address international tax avoidance.

• the CRA Commissioner is Vice-Chair and sponsor of the Large Business Network at the Organisation for Economic Co-operation and Development (OECD) Forum on Tax Administration, where the Agency is coordinating the development and delivery of a work plan to support the OECD/G20 Base Erosion and Profit Shifting (BEPS) project. The BEPS project is a global effort that is seeking to prevent multinational corporations from inappropriately minimizing their taxes. This effort will support compliance management of large businesses and other potential projects.
• the CRA is taking a leading role in building capacity for developing countries through the provision of advice and support in the administration of their taxation regimes.
• the Agency will engage in bilateral and multilateral cooperation and collaboration on taxpayer-specific issues, risks, and compliance practices by March 2017 through its work with the Joint International Tax Shelter Information Centre Network. Participating in the network makes it easier to share information and helps increase the Agency's understanding of intergroup transactions.

Criminal Investigations Program

Planning highlights

Each year, more than 95% of the CRA cases criminally prosecuted by the Public Prosecution Service of Canada (PPSC) result in convictions. Criminal investigators at the CRA will continue to work closely with the PPSC and federal law enforcement agencies to make sure the most serious cases of tax evasion and fraud are thoroughly investigated and referred for prosecution. The CRA is strategically focusing on large scale offenders for highest impact resulting in increased average jail sentences. This demonstrates the Agency is targeting the right offenders.

To help bring to justice those who break Canada's tax laws, the CRA will:

• publicize successful prosecutions and investigation actions, such as searches and seizures or the laying of criminal charges, throughout the planning period. This is expected to deter serious non-compliance by communicating that tax evasion and fraud are criminal offences and offenders will be pursued and prosecuted.
• refine how it selects high-risk files by April 2016, taking into consideration regional, national, and international priorities.
• enhance its forensic and informatics capabilities by acquiring of tools and technological expertise needed for complex investigations by March 2017.
• increase co-operation with law enforcement agencies including, for example, an updated Memorandum of Understanding with the Royal Canadian Mounted Police.

Small and Medium Enterprises

Planning highlights

The CRA's efforts to support and enforce compliance by small and medium Canadian enterprises generated $1.3 billion in fiscal impact in 2014-2015. With the creation of a new Small and Medium Enterprises Branch on April 1, 2016, the Agency will continue to support voluntary compliance through education; through "nudge" approaches such as letter writing campaigns and working with industry associations to raise awareness and promote compliance; through engagement with key stakeholders in the business, industry, and tax professional communities; and by providing in-person assistance designed to help businesses comply with their tax obligations. The new branch will further complement traditional approaches with innovative interventions such as Liaison Officer visits, registration of tax preparers, sector approaches and other efforts that are more proactive and collaborative and are aimed at helping those who want to comply. The Agency will also continue to identify and pursue individuals and businesses participating in the underground economy and who are not reporting all their income. In that regard, for those who choose not to comply, the CRA's traditional audit and enforcement measures will apply.

The following initiatives illustrate how the Agency will reduce the compliance burden for small and medium enterprises and reduce the impact participation in the underground economy causes to Canada.

The CRA will:

• implement phase 3 of the Liaison Officer Initiative by April 2016. Through the initiative, businesses receive in-person support and information at key points as their business grows to help them understand their rights, navigate the tax system, cut through red tape, and more easily comply with their tax obligations. The first two pilot phases of the initiative were very well received and feedback from participating businesses on the services, information and support provided in each region was used to design phase 3 to better meet the needs of new and small businesses.
• launch the Registration of Tax Preparers Program in October 2016 and start education and outreach activities by 2018. Tax preparers who file and prepare income tax returns for a fee will have to register with the Agency. The program will improve compliance and the accuracy and completeness of tax returns by providing guidance to tax preparers who make frequent errors.

Underground economy

The CRA will continue implementing its underground economy strategy, announced in 2014. The strategy has three themes:

1. Refine the CRA's understanding of the underground economy (UE): The CRA will use its past experience and knowledge of the underground economy, combined with advanced data analysis and input from stakeholders. The Agency will also hold roundtable meetings with the provinces and territories to better understand who participates in the underground economy, and why and how they do so.
2. Reduce the social acceptability of participating in the underground economy: Working with partners, the CRA will develop strategies to make participating in the underground economy less acceptable to consumers. By 2018, the second Get it in Writing! campaign, launched in March 2015 in partnership with the Canadian Home Builders' Association, will be completed.
3. Use initiatives to encourage compliance and reduce participation in the underground economy: The CRA will detect, correct and, where appropriate, penalize underground economy activity as ways to support behavioural change. For example, CRA Underground Economy Specialist Teams will conduct audits in industry sectors where participation in the underground economy is high, and point-of-sales teams will address the electronic suppression of sales. Also, taxpayers who repeatedly participate in the underground economy will be referred to the CRA's criminal investigations division.

Industry Campaign Approach

Through the Industry Campaign Approach, the CRA aims to raise the level of compliance in an industry sector by working with associations to identify common mistakes and develop communications products to help businesses in the sector. The CRA expects these efforts to reduce the number of costly face-to-face audits and to make sure the audits undertaken are better directed to those who intentionally do not comply. The first industry campaign began in March 2014. New campaigns have since begun and the CRA will send campaign letters to new businesses and repeat late-filers in these new industry sectors in April 2016.

Office Audit Letter Campaign

The CRA Office Audit Letter Campaign is designed to change behaviour by informing taxpayers of their reporting requirements. It also tells clients how to correct past errors by filing a T1 Adjustment Request and alerts them the CRA may be conducting audits in their sector in the coming year. The CRA Office Audit Letter Campaign will be undertaken every January and February.

Audit e-services

The Agency will enable auditors to securely communicate electronically with taxpayers who are under audit. The first phase of this email functionality project will launch by May 2016. Subsequent phases will allow auditors to initiate the dialogue and expand the capabilities to individual taxpayers.

GST/HST Program

Planning highlights

The CRA completes more than 70,000 GST/HST audits every year. The audits generated more than $2.2 billion in fiscal impact in 2014-2015. The following initiatives will help the Agency to make sure GST/HST registrants comply with reporting requirements. It will also help the CRA prosecute those who participate in the underground economy and aggressive GST/HST planning schemes.

The CRA will:

• write to GST/HST registrants before we decide to audit in order to provide registrants with the opportunity to voluntarily correct their returns and also to advise them of common errors. This initiative will begin in May 2016 and is expected to raise the level of compliance by helping businesses to better understand their tax obligations and encourage them to correct any inaccuracies in their recently filed returns. The CRA will evaluate the pilot by December 2016, considering the effectiveness of its risk assessment model and the effect of the letter on registrant behaviour.
• refine new risk assessment criteria and baseline for monitoring compliance trends. The information will be used to validate and refine risk assessment models, measure the success of audit strategies, and improve audit programs with respect to workload development, performance measurement, and risk assessment. The program will:
  • gather the data from the completed research audits and prepare it for analysis by September 2017
  • analyze the data and identify the risks from September to December 2017
  • establish performance measures of risk assessment criteria by December 2018
• continue to use extensive third party data (e.g., banks, other tax administrations) to target high risk non-compliance files.
• increase stakeholder engagement with the Chartered Professional Accountants of Canada (CPA Canada) through regular meetings of the CRA/CPA Canada Commodity Tax Committee in 2016-2017.

Scientific Research and Experimental Development

Planning highlights

The CRA processes approximately 24,000 claims every year under the Scientific Research and Experimental Development (SR&ED) program. The CRA also processes approximately 6,500 claims every year under film and media tax credit programs supporting Canadian film or video production and related services.

The following initiatives support research and development activities by Canadian businesses who use the SR&ED program. The CRA will:

• review the services SR&ED program offers to make sure they are meeting the needs of businesses and the CRA. By April 2016, the Agency will complete the review and develop a service strategy for the SR&ED program. Components of the strategy will be implemented over three years, from April 2016 to April 2019.
• improve predictability for businesses, in particular small and medium-sized enterprises claiming SR&ED tax incentives. By April 2016, the Agency will launch a pilot project providing businesses with a formal pre-approval of their claims under the SR&ED program.
• expand outreach activities by April 2016 to increase awareness of the SR&ED program through engagement with other government departments and industry associations, and greater use of digital communications and social media.
• make sure claims are treated consistently across the country by implementing a redesigned SR&ED Quality Assurance Program, which will enable the CRA to effectively identify, investigate, and address any issues of inconsistency by April 2016.

The International and Large Business subprogram includes Planned Spending (Dollars) for Offshore Compliance.

• 2016-17: $12,672,413
• 2017-18: $12,329,428
• 2018-19: $8,105,835

Performance Measurement

Program: Collections, Compliance, and Verification

Compliance and Verification

Planning highlights

To promote, support, and enforce all aspects of compliance, the CRA continually seeks ways to provide easier access to the information and tools required by taxpayers. Employers are a significant element of Canada's self-assessment tax system. Approximately 1.6 million employers collect income tax through source deductions, accounting for more than $200 billion in annual tax revenue. The CRA helps prevent non-compliance among employers using cost-effective, educational, and proactive methods to prompt timely and appropriate action. These methods include webinars, automated phone calls, and letters to remind employers of their obligations associated with payroll deductions, GST/HST, and other levies. Recently, the Agency developed a mobile app for business clients that can be used to create custom reminder alerts for due dates related to instalment payments, returns, and remittances.

The CRA will:

• make available employer assessment notices and other communications in electronic format through the My Business Account secure portal. Employers who register for electronic correspondence will receive notifications when new items are posted. These options will be available by December 2016.
• expand the ability for taxpayers to view electronic correspondence and to submit documents through the CRA portal. These changes will be implemented by 2017-2018.
• apply behavioural economics to improve responsiveness to compliance interventions, such as letter campaigns or automated messages. The potential of multiple approaches will be examined, with experimental design and initiation starting in 2016-2017.
• continue to educate employers and taxpayers of their responsibilities by exploring new channels for outreach and by modernizing communications tactics, such as the use of webinars. This approach will continue throughout 2016-2019.
• continue to address non-compliance in specific areas such as GST/HST, employer withholding, and income tax obligations; this will in turn contribute to the CRA's efforts to identify non-filers participating in the underground economy. This approach will continue throughout 2016-2019.

Collections – Tax and Government Programs

Planning highlights

Improved information technology and data analysis are enabling the CRA to take a more targeted and risk-based approach to collecting tax debt. By differentiating lower-risk taxpayers (those who can and want to pay, or those who owe but need time to pay) from those who do not intend to pay, the CRA can customize its approach to encourage or enforce compliance as needed. A significant proportion of tax debt may be prevented or resolved more quickly as a result of the following measures.

The CRA will:

• expand its use of e-services to transmit and receive communications electronically with more taxpayers and third parties, by March 2017.
• further automate current processes to help improve timeliness and achieve further efficiencies in debt collections by March 2017.
• develop an online calculator to help taxpayers determine repayment amounts and options, and to promote making online payments. The online calculator will be available by March 2017.
• expand its use of social media tools including posting a second collections video and launching it on YouTube; exploring the use of other social media such as Twitter; and posting more answers to the "frequently asked questions" on the Web. These initiatives will be implemented by March 2017.
• refine the way it allocates historically non-compliant debtor files to specialized collection teams across Canada in order to improve timeliness and enhance the effectiveness of debt collections, by March 2017.
• develop specialized strategies to manage the unique risks associated with tax debt on complex workloads, such as international accounts and tax avoidance schemes. This includes enhancing the framework and processes for managing tax treaty referrals to other jurisdictions. To be implemented by March 2017.
• continue to advance its use of nudge messaging to promote early resolution of collection files. This initiative will include analyzing the results of the Agency's nudge activities to date, and establishing appropriate future strategies, by March 2017.
• continue to expand the use of business intelligence and data-mining capabilities designed to better predict taxpayer behaviour and identify risks to the accounts. The CRA will optimize the use of these capabilities to further tailor its strategies based on risk levels. Low risk accounts will be resolved through low cost processes, allowing for higher risk accounts to be addressed in the CRA's tax service offices. This initiative will be implemented by March 2018.

Performance Measurement

Program: Appeals

Income Tax/Commodity Taxes Objections and Appeals to the Courts

Planning highlights

The CRA is taking steps to improve the timely resolution of objections. The Agency receives approximately 80,000 objections each year and aims to make sure each taxpayer is treated fairly, in accordance with applicable tax laws such as the Income Tax Act. By engaging in dialogue with the taxpayer, an appeals officer conducts an impartial review of the decision to try to resolve the dispute. As part of its ongoing commitment to improve services, the CRA will:

• find ways to process objections more quickly. Initiatives will include innovation den brainstorming sessions, simplifying documentation, possible procedural changes, and a variety of pilot projects. Implementation is ongoing.
• resolve new intake of low-complexity objections within 180 days, 80% of the time.
• continue to reduce its group objections inventory. In 2014-2015, the Agency worked on over 91,000 group files. More than 25,000 of them were resolved and the remainder are pending reassessment or a court decision. In addition to the 20,000 cases available to be worked on, there are currently 75,000 cases associated with 28 different national groups being held in abeyance pending court decisions; these will become workable as cases are heard by the courts or resolved through settlements.
• review external forms and publications to improve clarity and promote electronic service delivery.

Canada Pension Plan (CPP) /Employment Insurance (EI) Appeals to the Minister and Appeals to the Courts

Planning highlights

Thousands of Canadians rely on payments through the Canada Pension Plan (CPP) or employment insurance (EI), and prolonged disputes can potentially cause financial hardship. Each year the CRA receives and resolves approximately 3,000 CPP/EI disputes relating to assessments or rulings made under the Canada Pension Plan and the Employment Insurance Act. To provide better service for Canadians who depend on payments from CPP or EI, the CRA will continue to seek process efficiencies.

The CRA will:

• improve its method of file distribution, which should result in more effective management of the workload. This will also make service across Canada more uniform. Implementation is scheduled for 2016.

Service Complaints

Planning highlights

In 2014-2015, the Agency resolved more than 3,300 service complaints within 30 business days more than 95% of the time. In the past year, the CRA's expansion of electronic service delivery also made it possible for taxpayers to file service complaints online, through the secure portals. Taxpayer feedback is a source of valuable insight for the CRA, and better enables the Agency to identify and implement service improvements. The Agency collects taxpayer comments through its service complaints program, call centres, and other formal and informal channels. The CRA will:

• develop an Agency-wide service feedback model to enable the Agency to better collect and track comments received from taxpayers in order to identify systemic service issues and improve our service to Canadians.

Taxpayer Relief

Planning highlights

Requests for taxpayer relief can arise due to any number of circumstances, ranging from widespread disaster to individual hardship. In 2014-2015, the Agency granted relief in more than 400,000 cases. The CRA continually seeks to improve service. In 2014-2015, the Agency enhanced its inventory management process to provide better service to Canadians and to allow for more efficient and balanced distribution of incoming taxpayer relief requests.

The CRA will:

• introduce a new service standard to acknowledge receipt of taxpayers' requests for relief within 30 days, 85% of the time. This will begin in April 2016.

Performance Measurement

Program: Benefit Programs

Benefit Enquiries

Planning highlight

The CRA responds every year to more than six million telephone enquiries from Canadians who depend on the benefit and credit programs the CRA administers for an important part of their income. Through the following initiatives, the Agency will make sure it continues to respond to this high volume of enquiries with timely and accurate information.

 The CRA will:

• improve the service experience of benefit recipients by updating the technology supporting its contact centres and by analyzing the reasons for calls. These initiatives are discussed in more detail in the chapter "Taxpayer and business assistance".

Benefit Programs Administration

Planning highlights

The CRA will continue to administer 135 benefit and credit programs and services on behalf of the provinces and territories and the federal government. The Agency's expertise and systems allow for flexible and efficient administration of these programs and services, reducing the need to create duplicate administration structures across federal, provincial, and territorial jurisdictions.

Through the following initiatives, the Agency will improve the service experience for recipients while making sure its systems support program growth.

The CRA will:

• enhance its communications strategy to include a focus on proactively increasing awareness of benefits and credits, and informing recipients of their rights and obligations. The CRA wants all Canadians to understand what benefits and credits are available to them. This initiative will help Canadians who may not be aware of the benefits and credits for which they may be eligible, and therefore do not apply.
• expand the online mail function to benefit programs to enable individuals to view their benefit notices and slips in My Account.
• add information on benefit payments to the MyCRA mobile app in 2016.
• implement the Disability Tax Credit Promoters Restrictions Act regulations. The Act received Royal Assent in May 2014. Its purpose is to establish a maximum fee under the Act and whether some promoters can or should be exempt from the reporting requirements.
• continue encouraging use of direct deposit to make sure refunds and benefits are received in timely manner. The Agency will develop a service level agreement with Employment and Social Development Canada to share direct deposit information. The CRA will also revise the direct deposit consent statement to allow the Agency to share banking information with other government of Canada departments.
• continue the multi-year renewal of the benefits system. The Benefits System Renewal Project will modernize processes and incorporate more efficient technologies to make sure benefit payments and services are delivered without interruption, while enabling future program growth.

Performance Measurement

Internal Services

Human Resources

The Agency has over 40,000 employees in offices across the country. It counts on a diverse and high-performing workforce to administer tax, benefits, and related programs, to provide customer service, and to ensure compliance on behalf of governments across Canada.

Planning highlights

The CRA will:

• implement strategies to address the aging CRA workforce and the shift in the CRA's work from transaction-based to knowledge-based activities. The Agency will:
  • conduct targeted national recruitment campaigns by December 2016, working in partnership with other government agencies and departments and with external stakeholders, such as the professional accounting associations and the Public Service Commission, as appropriate.
  • enhance its visibility on post-secondary campuses.
  • concentrate on post-secondary recruitment in specific fields by attending various recruitment events at post-secondary schools and community organizations, in addition to recruitment and development initiatives for the audit community.
  • continue succession planning initiatives to develop and maintain its leadership capacity and adopting the new Key Leadership Competencies in recruiting executives by June 2016.
• foster a positive and respectful workplace by implementing national, regional and branch action plans based on the results of the 2014 Public Service Employee Survey by April 2016.
• maintain a strong and vibrant workforce representative of the Canadian population it serves, including representation for the four employment equity groups. The CRA's representation levels for the four groups continued to surpass labour market availability in 2014 and the Agency is committed to implementing specific practices and measures to make sure it maintains its good record on this front.
• continue to communicate and consult with official language minority communities as part of its outreach plan and contribution to the government's commitment under Part 7 of the Official Languages Act.

Integrity and Security

The CRA considers integrity and security in all activities, planning, and decision-making. Every CRA employee has a duty to protect the privacy and confidentiality of Canadians' personal information. The CRA's computer systems are also designed to protect personal information and the Agency has mechanisms, such as electronic transactions monitoring and identity and access management tools, to prevent, detect, and mitigate unauthorized access to its systems.

Planning highlights

The CRA will:

• implement a pilot project for internal investigations within the regional security program by March 2017. The CRA's internal investigations program will pilot a project with the Ontario and Pacific regions to complete simple internal investigations. Lower-risk files will be completed by the regional security manager and their officers who will be responsible for the full internal investigation process. The pilot project is expected to better utilize existing CRA resources.
• complete the Identity and Access Management (IAM) project by June 2017. The national program will oversee all IAM activities and processes to make sure they are consistent and standardized. The program will effectively align all IAM activities to create a common framework and will define a set of principles, processes, and controls to strengthen the Agency's information security.
• make sure the CRA's security policy structure and programs remain aligned with an anticipated new Treasury Board Secretariat Policy on Government Security within two years of its release. The Agency expects changes to the policy will strengthen security management, clarify roles and responsibilities, and include security considerations in delivering shared services, such as those provided by Shared Services Canada.

Openness and transparency

The CRA works to build and maintain taxpayers' trust by being as open and transparent as possible about how it administers taxes and benefits. The Agency also builds trust by continually improving client service, by simplifying and streamlining the filing and payment process, and by proactively communicating news about taxes and benefits to clients.

The Agency reports to Canadians on its plans through this document, and on its performance and expenditures through its performance reports. These plans and reports are tabled in Parliament and published online to provide full transparency about the Agency's strategies, operations, results and spending.

The Agency regularly consults with taxpayers to help identify opportunities for service improvements, and to explain its initiatives. For example, the CRA held cross-country consultations with small businesses and their tax representatives in 2014 to identify priorities for reducing the compliance burden. The Agency will be implementing initiatives identified through the consultations—such as increasing its range of digital services—throughout the planning period.

The CRA proactively communicates information to help taxpayers meet their obligations, and help benefit recipients receive their entitlements. The Agency regularly offers webinars and publishes online videos and publications anticipating and responding to client questions about taxes and benefits. The CRA actively promotes this information through traditional and social media. The CRA also analyses the millions of enquiries it receives annually to identify recurring issues and opportunities to improve its services and information accordingly.

The CRA also engages with stakeholder groups representing various segments of its client population. For example, the CRA works closely with numerous professional, industry and civil society groups such as the Chartered Professional Accountants of Canada, the Canadian Federation of Independent Business and the Canadian Taxpayers' Federation to draw on their expertise and insights. The Agency also supports community groups providing tax assistance to those with lower and fixed incomes through the Community Volunteer Income Tax Program.

The CRA supports the Open Government initiative which makes government data and information freely available to the public in a way that makes it easy to search, discover and reuse. To date, the CRA has released 44 information tables and datasets on the Government of Canada's Open Data portal at www.open.canada.ca^vii. The CRA datasets are among the 25 most downloaded from the portal, confirming their high value. The CRA will complete its data inventory by October 2016 and continue publishing data sets on the portal throughout the planning period. In doing so, the CRA will maximize the release of data and information of business value, subject to restrictions for privacy, confidentiality and security.

Access to Information and Privacy

The CRA protects and manage the confidentiality of taxpayers' personal and financial information in accordance with the laws it administers, such as the Income Tax Act, the Excise Tax Act, and the Excise Act, 2001. The Agency also complies with the Access to Information Act and the Privacy Act.

Planning highlights

The CRA will:

• enhance privacy oversight through the continued monitoring and reporting of the Agency's privacy management framework by the CRA Chief Privacy Officer. The CRA will continue monitoring completion of key indicators such as the CRA privacy impact assessment plan; privacy breach management, and communications related to integrity and privacy.
• implement recommendations from audits by the Office of the Privacy Commissioner. Six of the nine recommendations will be implemented by December 2016. The remaining recommendations require the implementation of more complex IT system and control measures in the CRA, and will be completed by April 2017.
• implement all recommendations from the third-party review of the Access to Information and Privacy (ATIP) Directorate's privacy management framework. The effectiveness of these measures will be evaluated in 2016-2017.

Finance and Administration

Sound comptrollership supports CRA programs and activities, ensuring timely, accurate and relevant financial information is available for senior management planning and decision-making. The CRA uses a robust system of financial controls to ensure the integrity and effective management of the funds it receives and disburses. The strength of the CRA's financial management function is founded on clear accountabilities, an efficient financial services delivery model, and a structured approach to resource management committed to fiscal prudence and the optimal use of financial resources and investments through alignment with the strategic direction and priorities of the organization.

The CRA regularly reviews its finance and administration organizational and service delivery models to maximize efficiencies, simplify processes and procedures, and identify improvement and savings opportunities.

Planning highlights

The CRA will continue to advance the Chief Financial Officer (CFO) Model and consolidate the oversight of its Financial Management Systems (FMS):

• The CFO model is a government-wide best practice to formalize the CFO as the lead senior executive for all aspects of financial management, program financing, financial reporting and disclosure. In 2015-16 the model was advanced in CRA with the establishment of direct reporting relationships between the financial management advisors of HQ branches and the CFO. Effective April 1, 2016, this model will further progress when the five regional directors of finance and administration will begin reporting under the CFO to strengthen communications between HQ and the regions. It will also ensure consistency and standardization in services across the Agency by providing common leadership and support in all aspects of the Agency's financial and administrative matters.
• FMS consolidation will provide for the creation of a single division to manage FMS systems and applications. These changes strengthen management of the FMS portfolio, and improve the governance, oversight, and collaboration with respect to systems investments.

Accommodations are one of the CRA's largest expenditures and optimizing space is a priority. While space optimization has been a long-standing goal, the implementation of a Workplace 2.0 environment beginning in April 2011 has led to greater opportunities for savings.

• The Agency has reduced its footprint by 87,500 square metres (9.3% of inventory) and will further reduce it by 64,500 square metres (6.7% of inventory) by March 2019.
• The CRA will make sure its investments in work spaces reflect industry best practices and meet operational needs by continuing to implement the Workplace 2.0 initiative throughout the planning period.

Information Technology

The CRA handles large volumes of tax and benefit transactions accurately, on time, efficiently and cost-effectively with modern tools, systems, and information technology (IT) solutions. More than 80% of individual returns are filed electronically, and more than 60% of benefit payments and payment processing is automated. This reliance on IT will increase as the CRA releases more electronic self-service options and as taxpayers adopt these tools.

Planning highlights

The CRA will focus on the following IT priorities:

• IT security: Guided by its IT security strategy, the Agency protects taxpayer data from inappropriate access and from increasingly complex cyber threats. Multi-year projects currently in progress and scheduled for completion in fiscal 2018-2019 include the Data Security Initiative, the Identity and Access Management project, and the National Audit Trail System Modernization project. These projects will enable better protection of the Agency's data and technology assets. For example, the National Audit Trail System Modernization project—to be completed in fiscal 2016-2017—will provide the ability to detect and proactively analyze questionable transactions on taxpayer information through the application of business intelligence. Also, the Identity and Access Management project—to be completed in fiscal 2017-2018—will provide greater assurance security policies are being respected by centralizing and standardizing the provisioning, tracking and auditing of end-user and privileged user accounts.
• Expansion of e-services: The CRA will continue to enhance its self-service applications in support of the e-Interactions strategy to provide flexible and convenient on-line services. By 2018, the CRA will have delivered the foundation to reengineer the secure online portals My Account, My Business Account, and Represent a Client to make them easier for taxpayers and their representatives to use, while also preparing for future program growth and advances in technology.
• Business intelligence analytics: The CRA will continue to strengthen its Business Intelligence (BI) foundation through a renewal of the BI computing platform, tools and processes to be completed by the end of fiscal 2018-2019. The renewed BI environment will enhance the Agency's capability to conduct advanced research, trend analysis and compliance risk analysis in a timely manner.
• Core system redesign and renewal: The CRA will continue advancing the Application Sustainability Program to make sure its systems remain stable and to protect the integrity of the tax base and benefits services. IT innovation is at the core of the CRA's risk-based compliance strategies, enabling the Agency to quickly detect and correct errors, validate data, and direct enforcement resources to the highest-risk accounts. For example, the CRA is reengineering the T1, benefits, and various business systems including the Business Number (BN) system to incorporate flexible and resilient foundations, efficient, modern technologies and processes, and to enable future program growth. The T1 and Benefits Systems will both fully deploy in February 2019.
• Government of Canada IT initiatives: The CRA works closely with Shared Services Canada (SSC) to make sure IT infrastructure services meet its needs and support the federal government's approach to delivering reliable, secure, and lower-cost IT infrastructure services. The CRA will continue several joint initiatives with SSC, including Data Centre Consolidation, Email Transformation, Telecommunication Transformation Project, Contact Centre Transformation, and cyber and IT security measures.

Table Notes

1 Planned spending refers to those amounts for which a Treasury Board submission approval has been received by no later than February 1, 2016. This cut–off date differs from the Main Estimates process. While in any given year planned spending may include amounts incremental to planned expenditure levels presented in the Main Estimates, this year it does not.

2 The decrease in planned spending from 2016-17 to 2018-19 under the Taxpayer and Business Assistance Program and the Policy, Rulings, and Interpretations Subprogram results primarily from disbursements for an amount of $128 million to the provinces under the Softwood Lumber Products Export Charge Act, 2006 in 2016-17 that will conclude the agreement between Canada and United States on softwood lumber.

Footnote

1 Information Declaration (InfoDec) manages the capture, amending, and storage of several different third-party information returns provided to the CRA by employers (T4), financial institutions (T5), trust companies (T3), and government agencies.

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