Report on Plans and Priorities 2016-17
Section 3: Supplementary Information
Future-Oriented Condensed Statement of Operations
The Future-Oriented Condensed Statement of Operations provides a general overview of the Canada Revenue Agency's operations. The forecast of financial information on expenses and revenues is prepared on an accrual accounting basis to strengthen accountability and to improve transparency and financial management.
Because the Future-Oriented Condensed Statement of Operations is prepared on an accrual accounting basis, and the forecast and planned spending amounts presented in other sections of the Report on Plans and Priorities are prepared on an expenditure basis, amounts may differ.
A more detailed Future-Oriented Statement of Operations and associated notes, including a reconciliation of the net cost of operations to the requested authorities, are available on the Canada Revenue Agency's websiteviii.
| Financial Information | 2015-16 Forecast Results |
2016-17 Planned Results |
Difference (2016-17 minus 2015-16) |
|---|---|---|---|
| Total expenses | 4,589,129,282 | 4,605,592,665 | 16,463,383 |
| Total non-tax revenues | 490,801,749 | 473,096,763 | (17,704,986) |
| Net cost of operations before government funding and transfers | 4,098,327,533 | 4,132,495,902 | 34,168,369 |
Service standards
Service standards
The Canada Revenue Agency's public service standards state the level of service taxpayers and benefit recipients can expect under normal circumstances. The standards reinforce the Agency's commitment to transparency, management accountability, and client-focused service.
Managing service standards
The CRA will continue to examine opportunities to update and streamline service standards to keep pace with changes, client preferences, technology and business processes, and evolving services. The CRA recognizes the importance of public input, and considers the perspectives of taxpayers and benefit recipients in developing and updating service standards.
New service standards
Due to changes in the operating environment and taxpayer expectations, in 2016 the CRA will introduce three new service standards.
The first new service standard is to process electronic goods and services tax/harmonized sales tax (GST/HST) returns within 30 calendar days, 95% of the time. Since most taxpayers now choose to file electronically, having a standard for processing electronic returns will help the CRA appropriately respond and adapt to the shift to digital services.
The second new service standard is to process paper GST/HST returns within 60 calendar days, 95% of the time. Having a separate standard for paper filing is consistent with the differences in processing time for paper and electronic returns, and will be an incentive for taxpayers to choose the easier and faster electronic filing method.
The third new service standard will be to acknowledge a taxpayer relief request to cancel or waive penalties and interest within 30 calendar days of receipt, 85% of the time. Through The Taxpayer Relief Program, the CRA helps taxpayers who cannot meet their tax obligations because of circumstances beyond their control. This standard will help to assure taxpayers their request has been received and is being reviewed.
| Service | Service standard to be introduced | Target |
|---|---|---|
| Processing electronic GST/HST returns | Our goal is to process an electronic GST/HST return within 30 calendar days of receipt. | 95% |
| Processing paper GST/HST returns | Our goal is to process a paper GST/HST return within 60 calendar days of receipt. | 95% |
| Service | Service standard to be introduced | Target |
|---|---|---|
| Taxpayer relief requests – 30 day acknowledgment | Our goal is to acknowledge receipt of a taxpayer relief request to cancel or waive penalties and interest within 30 calendar days of receipt. | 85% |
Revising service standards
The CRA will revise two service standards to make them simpler and easier to understand. The two standards relate to the processing of benefit applications and marital status change forms: One standard measures accuracy and the other standard measures timeliness.
The wording of the two standards will be changed to remove reference to the marital status change forms. These forms are a small part of the overall workload and do not encompass other ways in which benefit recipients can notify the CRA of a change in marital status, such as by telephone or through My Account. The Agency will continue to monitor and report internally on the processing of these forms.
| Revised service | Revised standard | Target |
|---|---|---|
| Processing benefit applications – accuracy | Our goal is to accurately process the appropriate payment and notice, or send a letter requesting additional information. | 98% |
| Processing benefit applications – timeliness | Our goal is to send a payment, notice, or explanation within 80 calendar days. | 98% |
Retiring service standards
As part of the ongoing review process, the CRA will retire the following service standards:
- the standard for processing GST/HST returns-because two new standards will replace it;
- the standard for benefits validation and compliance-because it is a validation activity based on enquiries initiated by the CRA and not a recipient-driven activity. Despite the retirement of this standard, the CRA will continue to conduct benefits validation reviews and measure performance internally to make sure benefit recipients are given timely notices.
- the standard for taxpayer requests for statistical tax data-because the CRA will no longer provide this service. Taxpayers will be advised they can still request this service from Statistics Canada. Taxpayers and benefit recipients with routine questions or concerns can continue to contact the CRA using regular service channels.
| Service | Standard to be retired | Target |
|---|---|---|
| Processing GST/HST Returns | Our goal is to process GST/HST returns within 30 calendar days of receipt. | 95% |
| Service | Standard to be retired | Target |
|---|---|---|
| Benefits validation and compliance – results of review | Our goal is to inform you of the result of our review within 45 calendar days after we receive the information requested. | 90% |
| Service | Standard to be retired | Target |
|---|---|---|
| Taxpayer requests for statistical tax data | Respond to taxpayer requests for statistical data within an average of 30 calendar days. | 100% |
Overall review of service standards
To increase clarity and understanding, the CRA has reviewed all of its service standards. As a result, many of them have had minor wording or grammatical changes such as the use of singular nouns, plain language, and citizen-focused wording. This does not affect how the standards are measured or the targets.
The full suite of CRA service standards for 2016-2017 is listed below.
| Service | Standard | Target |
|---|---|---|
| Business enquiries – telephone service level | Our goal is to respond to a call in the agent queue within two minutes. | 80% |
| GST/HST rulings and interpretations - telephone enquiries | Our goal is to respond to a call in the agent queue within two minutes. | 80% |
| GST/HST rulings and interpretations – written enquiries | Our goal is to respond to a written request for a GST/HST ruling or interpretation within 45 business days of receipt in the CRA. This excludes highly technical and precedent and/or policy-setting rulings and interpretations. | 80% |
| Charities – responding to telephone enquiries | Our goal is to respond to a call in the agent queue within two minutes. | 80% |
| Charities – responding to simple applications | Our goal is to respond to a complete simple1 application for charitable registration within two months. | 80% |
| Charities – responding to regular applications | Our goal is to respond to a complete regular2 application for charitable registration within six months. | 80% |
| Charities – written enquiries – routine | Our goal is to review and respond to a routine3 written enquiry within 30 calendar days. | 80% |
| Charities – written enquiries – complex | Our goal is to review and respond to a complex4 written enquiry within 75 calendar days. | 80% |
| Advance income tax rulings | Our goal is to issue an advance income tax ruling within 90 business days of receipt of all essential information from the client. | 85% |
| e-Services Helpdesk – telephone service level | Our goal is to respond to a call in the agent queue within two minutes. | 80% |
| General enquiries - telephone service level | Our goal is to respond to a call in the agent queue within two minutes. | 80% |
| Technical interpretations | Our goal is to issue a technical interpretation within 90 business days of receipt of all essential information from the client. | 85% |
| Actuarial valuation reports | Our goal is to provide a decision on the recommended employer contributions to a registered pension plan, within 270 calendar days of receipt of the actuarial valuation report. | 80% |
| Applications to register pension plans | Our goal is to provide a decision within 180 calendar days of receipt of an application to register a pension plan. | 80% |
| Deferred income plans – response to written enquiries | Our goal is to respond to a written enquiry within 60 calendar days. | 80% |
| Deferred profit sharing plans – reviewing applications | Our goal is to provide a decision within 180 calendar days of receipt of an application to register a deferred profit-sharing plan. | 80% |
| Education savings plans (applications to register, amend, or terminate) | Our goal is to provide a decision within 60 calendar days to a request to approve, amend, or terminate a specimen for an education savings plan. | 85% |
| Retirement income funds (applications to register, amend, or terminate) | Our goal is to provide a decision within 60 calendar days to a request to approve, amend, or terminate a specimen for a retirement income fund. | 80% |
| Retirement savings plans (applications to register, amend, or terminate) | Our goal is to provide a decision within 60 calendar days to a request to approve, amend, or terminate a specimen for a retirement savings plan. | 80% |
| Service | Standard | Target |
|---|---|---|
| Processing excise tax, excise duty, softwood lumber returns, and air travellers' security charge returns | Our goal is to process an excise tax, an excise duty, a softwood lumber, or an air travellers' security charge return within 60 calendar days of receipt. | 95% |
| Processing electronic GST/HST returns | Our goal is to process an electronic GST/HST return within 30 calendar days of receipt. | 95% |
| Processing paper GST/HST returns | Our goal is to process a paper GST/HST return within 60 calendar days of receipt. | 95% |
| Processing T2 corporation income tax returns - electronic | Our goal is to process an electronic T2 return (corporation income tax) within 45 calendar days of receipt. | 90% |
| Processing T2 corporation income tax returns - paper | Our goal is to process a paper T2 return (corporation income tax) within 90 calendar days of receipt. | 90% |
| Processing T1 individual income tax returns (EFILE and NETFILE) | Our goal is to process an electronic T1 return (EFILE and NETFILE) within an average of two weeks of receipt. | 100% |
| Processing T1 individual income tax returns (paper) | Our goal is to process a paper T1 return and mail a notice of assessment, and refund, if applicable, in an average of four to six weeks of receipt. | 100% |
| Processing T3 trust returns | Our goal is to process a T3 trust return within four months of receipt. | 95% |
| Responding to taxpayer-requested adjustments (T1) | Our goal is to mail a notice of reassessment within an average of eight weeks of receipt of all requisite information from the taxpayer. | 100% |
| Responding to taxpayer-requested adjustments (T1) received by Internet | Our goal is to mail a notice of reassessment within an average of two weeks of receipt of all requisite information from the taxpayer. | 100% |
| Service | Standard | Target |
|---|---|---|
| Claims – SR&ED tax incentives – claimant-requested adjustments to non-refundable claims | Our goal is to process claims for tax incentives from businesses that conduct scientific research and experimental development (SR&ED) in Canada within 365 calendar days from receipt of a complete claim for non-refundable claims related to adjustments requested to previously filed income tax returns. | 90% |
| Claims – SR&ED tax incentives – claimant-requested adjustments to refundable claims | Our goal is to process claims for tax incentives from businesses that conduct scientific research and experimental development (SR&ED) in Canada within 240 calendar days from receipt of a complete claim, for refundable claims related to adjustments requested to previously filed income tax returns. | 90% |
| Claims – SR&ED tax incentives – non-refundable claims | Our goal is to process claims for tax incentives from businesses that conduct scientific research and experimental development (SR&ED) in Canada within 365 calendar days from receipt of a complete claim for non-refundable claims. | 90% |
| Claims – SR&ED tax incentives – refundable claims | Our goal is to process claims for tax incentives from businesses that conduct scientific research and experimental development (SR&ED) in Canada within 120 calendar days from receipt of a complete claim for refundable claims. | 90% |
| Claims – video and film tax credits – refundable claims – audited | Our goal is to review T2 corporation income tax returns that include claims for the Canadian Film or Video Production Tax Credit, the Film or Video Production Services Tax Credit, the B.C. Film and Television Tax credit, the B.C. Production Services Tax Credit, the Manitoba Film and Video Production Tax Credit, and the Ontario Film and Television Tax Credit, and the Ontario Production Services Tax Credit within 120 calendar days from the date of receipt where audit action is undertaken. | 90% |
| Claims – video and film tax credits – refundable claims – unaudited | Our goal is to review T2 corporation income tax returns that include claims for the Canadian Film or Video Production Tax Credit, the Film or Video Production Services Tax Credit, the B.C. Film and Television Tax credit, the B.C. Production Services Tax Credit, the Manitoba Film and Video Production Tax Credit, and the Ontario Film and Television Tax Credit, and the Ontario Production Services Tax Credit within 60 calendar days from the date of receipt where no audit action is undertaken. | 90% |
| Service | Standard | Target |
|---|---|---|
| Taxpayer relief requests – 30 day acknowledgment | Our goal is to acknowledge receipt of a taxpayer relief request to cancel or waive penalties and interest within 30 calendar days of receipt. | 85% |
| First contact letter for disputes | Our goal is to acknowledge a taxpayer dispute within 30 calendar days of receipt. | 85% |
| Service Complaints – two-day acknowledgement | Our goal is to acknowledge receipt of the complaint within two business days. | 80% |
| Service Complaints – 30 day resolution | Our goal is to resolve the complaint within 30 business days. | 80% |
| Service | Standard | Target |
|---|---|---|
| Canada child tax benefit enquiries – telephone service level | Our goal is to respond to a call in the agent queue within two minutes. | 75% |
| GST/HST credit enquiries telephone service level | Our goal is to respond to a call in the agent queue within two minutes. | 75% |
| Processing benefit applications – accuracy | Our goal is to accurately process the appropriate payment and notice, or send a letter requesting additional information. | 98% |
| Processing benefit applications – timeliness | Our goal is to send a payment, notice, or explanation within 80 calendar days of receipt. | 98% |
| Responding to benefit and credit enquiries – accuracy | Our goal is to respond with correct information to a written enquiry or telephone referral from a call centre, to accurately process new recipient information, and to accurately issue a payment, notice, or letter. | 98% |
| Responding to benefit and credit enquiries – timeliness | Our goal is to respond to a written enquiry or a telephone referral from a call centre within 80 calendar days of receipt. | 98% |
| Processing a request to authorize or cancel a representative – paper | Our goal is to process your complete paper request to authorize or cancel a representative within 20 business days of receipt by the CRA, provided the request is complete. | 90% |
| Processing a request to authorize or cancel a representative – electronic | Our goal is to process your complete electronic request to authorize or cancel a representative within five business days of receipt by the CRA, provided the request is complete. | 90% |
Supplementary Information Tables
The supplementary information tables listed in the 2016-17 Report on Plans and Priorities are available on the Canada Revenue Agency's websiteviii.
- CRA Sustainable Development Strategy
- Details on Transfer Payment Programs of $5 Million or More
- Upcoming Internal Audits and Evaluations Over the Next Three Fiscal Years
- Planned Spending and Full-Time Equivalents
- Sources of Respendable Non-Tax Revenue and Non-Respendable Non-Tax Revenue
- Services Received Without Charge
- Summary of Capital Spending by program
- Future-oriented Statement of Operations – Agency Activities
Tax Expenditures and Evaluations
The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the Tax Expenditures and Evaluationsix publication. The tax measures presented in that publication are the responsibility of the Minister of Finance.
Table Notes
1 An application that has exclusively charitable purposes and activities and for which no further information is needed.
2 An application for which we need more information before we can determine if the organization qualifies for charitable registration.
3 An enquiry that is generally recurring and that needs little research and analysis.
4 An enquiry that is specific to a given charity or a donor and needs research or analysis, as well as consultation with internal stakeholders.
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