Report on Plans and Priorities 2016-2017
Section 1: Organizational Expenditure Overview
Organizational Profile
Appropriate Minister: The Honourable Diane Lebouthillier, P.C., M.P.
Institutional Head: Andrew Treusch
Ministerial Portfolio: National Revenue
Enabling Instruments: Canada Revenue Agency Act www.laws-lois.justice.gc.ca/eng/acts/C-10.11/ii
Year of commencement: 1999
Organizational Context
Raison d'être
The Minister of National Revenue is responsible for the Canada Revenue Agency (CRA). The CRA administers tax, benefits and related programs, and ensures compliance on behalf of governments across Canada. The CRA collects the revenues governments need to deliver essential services to Canadians. The CRA processes hundreds of billions of dollars in taxes and issue billions of dollars in benefit and credit payments annually.
The CRA's mandate is to make sure Canadians:
- pay their required share of taxes;
- receive their rightful share of benefits; and
- get an impartial review of the decisions they contest.
Responsibilities
The Agency has a broad range of responsibilities. In addition to administering the Income Tax Act and the Excise Tax Act, the CRA administers legislation relating to the Canada Pension Plan and the employment insurance program. It also enforces legislation governing charities, collects tobacco taxes and duties, administers registered plans, and collects debts for the federal government.
Serving taxpayers: The CRA gives taxpayers the accurate and timely information they need to comply with Canada's tax laws through its website, call centres, publications, and technical interpretations and rulings. The Agency regulates charities and monitors and administers deferred income and savings plans to make sure they meet legal requirements. It assesses and processes tax returns and payments for individuals and businesses as quickly and accurately as possible.
Promoting and enforcing tax compliance: The CRA identifies, addresses, and deters non-compliance with Canada's tax laws by promoting and enforcing compliance. It conducts outreach activities, provides targeted taxpayer assistance, and educates taxpayers of their tax responsibilities. It undertakes domestic and international examinations, audits, and criminal investigations. It helps to resolve tax debt quickly and it enforces compliance with tax laws for registering, filing, withholding, and paying debt obligations.
Facilitating redress: The CRA provides a fair and impartial redress process to resolve disputes and requests for relief arising from decisions the CRA made. If taxpayers are not satisfied with the outcome of this process, they can appeal to the courts.
Administering benefits: The CRA administers a range of ongoing benefits and one-time payment programs for the provinces and territories and the federal government, such as the Canada child tax benefit, the goods and services tax/harmonized sales tax credit and the universal child care benefit. The Agency makes sure the right benefit payment goes to the right individual at the right time and gives recipients accessible information and timely responses to their enquiries.
Strategic Outcomes and Program Alignment Architecture
Strategic Outcome: Taxpayers meet their obligations and Canada's revenue base is protected
Subprogram |
---|
Tax Information Services and Assistance |
Charities |
Registered Plans |
Policy, Rulings, and Interpretations |
Charities – Public Safety and Anti-terrorism |
Subprogram |
---|
Individual Returns |
Business Returns |
Payments |
Voluntary Disclosures Program |
GST/HST Administration in Quebec |
Subprogram |
---|
International and Large Business |
Small and Medium Enterprises |
Scientific Research and Experimental Development |
Criminal Investigations Program |
GST/HST |
Subprogram |
---|
Compliance and Verification |
Collections – Tax and Government Programs |
Subprogram |
---|
Income Tax Objections and Appeals to the Courts |
Commodity Taxes Objections and Appeals to the Courts |
Canada Pension Plan/Employment Insurance Appeals to the Minister and Appeals to the Courts |
Service Complaints |
Taxpayer Relief |
Strategic Outcome: Eligible families and individuals receive timely and accurate benefit payments
Subprogram |
---|
Statutory Children's Special Allowance Payments |
Benefit Enquiries |
Benefit Programs Administration |
Strategic Outcome: Taxpayers and benefit recipients receive an independent and impartial review of their service-related complaints
Subprogam |
---|
N/A |
Internal Services
Organizational Priorities
Planned Initiative | Start Date | End Date | Link to Program Alignment Architecture |
---|---|---|---|
Expand digital service options | Ongoing | March 2019 | Assessment of Returns and Payment Processing |
Improve external correspondence | Ongoing | March 2019 | Taxpayer and Business Assistance |
Improve telephone service | Ongoing | March 2019 | Taxpayer and Business Assistance |
Planned Initiative | Start Date | End Date | Link to Program Alignment Architecture |
---|---|---|---|
Reduce the compliance burden | Ongoing | March 2019 | Reporting compliance |
Expand online services for small and medium businesses | Ongoing | March 2019 | Assessment of Returns and Payment Processing |
Planned Initiative | Start Date | End Date | Link to Program Alignment Architecture |
---|---|---|---|
Fight the underground economy | Ongoing | March 2019 | Reporting Compliance |
Combat international tax evasion | Ongoing | March 2019 | Reporting Compliance |
Fight tax evasion | Ongoing | March 2019 | Reporting Compliance |
Planned Initiative | Start Date | End Date | Link to Program Alignment Architecture |
---|---|---|---|
Safeguard personal client information | Ongoing | March 2019 | Internal services |
Planned Initiative | Start Date | End Date | Link to Program Alignment Architecture |
---|---|---|---|
Implement innovative approaches to service and compliance | Ongoing | March 2019 | Assessment of Returns and Payment |
Planned Initiative | Start Date | End Date | Link to Program Alignment Architecture |
---|---|---|---|
Maintain and build a knowledgeable workforce | Ongoing | March 2019 | Internal Services |
For more information on organizational priorities, see the Minister's mandate letter on the Prime Minister of Canada's websiteiii.
Risk Analysis
Risk | Risk Response Strategy | Link to Program Alignment Architecture |
---|---|---|
Cyber security | Cyber security is a key risk under the CRA's priority of security and integrity. This is because if it is not well managed, it could threaten the CRA's information holdings and ability to deliver services. The CRA defines cyber security as all breaches from parties outside of the CRA. These could include viruses, malwares that take advantage of weaknesses in operating systems and application software, distributed denial of service attacks, phishing campaigns, and password theft. The CRA maintains robust security controls. As the sophistication and volume of cyber threats continues to increase, the CRA will remain proactive and forward-looking in its security. Several initiatives are under way, such as the Data Security Initiative, the Identity and Access Management project, and the National Audit Trail System Modernization project. These initiatives will further enhance the Agency's protection of its data and technology assets and mitigate this risk. |
Internal Services |
Compliance | Promoting, supporting, and enforcing all aspects of compliance is a cornerstone of the CRA's mission. The top compliance risks are offshore assets, transfer pricing, digital commerce, and the sharing economy. They are the top risks because of the impact they could have on the CRA's ability to protect Canada's revenue base and on public confidence in the fairness and integrity of the tax system. The CRA is working on several fronts to address these risks. For offshore assets and structures, the CRA has started implementing new measures to combat international tax evasion and aggressive tax avoidance. Additional resources are being allocated to crack down on tax evaders and work with international partners to adopt strategies to combat tax avoidance. To address instances of transfer pricing exploitation, the CRA is coordinating and collaborating closely with its international partners on several initiatives. The primary body of work in this area is being done as part of the OECD Base Erosion and Profit Shifting projectiv. Digital commerce and the sharing economy are means that individuals and businesses may deliberately exploit to underreport their income and avoid paying taxes. The Agency will continue to expand its range of strategies to detect and deter deliberate non-compliance. These strategies include specialized audit techniques to identify sectors with a high degree of risk of unreported income. |
Reporting Compliance |
Business intelligence | Business intelligence is a key risk area under the CRA's priority of innovation. This is because of the far-reaching opportunities it presents to enhance strategies for compliance, services, and debt collection. Business intelligence encompasses big data to improve non-compliance detection (predictive analytics) and behavioural economics (such as "nudging") to improve compliance. Key aspects of this risk are mining accessible data, developing tools and methodologies, and acquiring and developing subject matter expertise. Two major initiatives, the Business Intelligence Renewal initiative and the Managed Metadata Environment project, are under way. Supported by the CRA's Business Intelligence Strategy, headway in these areas will result in new innovative practices that will allow the CRA to enhance its business intelligence capabilities. | Internal Services |
The CRA proactively scans, identifies, assesses, and addresses key risks both external and internal to the organization in a constantly changing environment. It does this through the its Corporate Risk Profile. Focusing on the top risks and putting plans into motion to help reduce risk exposure where needed will position the Agency to deliver on its strategic priorities in support of its mandate to Canadians.
Integrity and Security – Cyber Security
The Agency continues to apply the highest level of integrity and security to protect taxpayer information and maintain public trust. With the increasing demand for digital services and the ever growing accumulation of digital records, the CRA continues to evolve its practices to keep pace with the sophistication and volume of cyber threats. To that end, the CRA will continue to work closely with its partners to make sure all appropriate systems, controls, and safeguards are in place.
Compliance
International tax evasion is a global problem. And many countries recognize that combatting it is important for protecting their national revenue base and the integrity and fairness of their tax systems. In response, the CRA is increasing its collaboration with other countries, through the OECD/G20 Base Erosion and Profit Shifting Project and, the new Joint International Tax Shelter Information and Collaboration Network. This will better allow the CRA to counter cross-border tax evasion and close the gaps in existing international rules.
New technologies have impacted on compliance. As a result the CRA is evolving its non-compliance detection techniques for activities related to digital payment systems, digital currencies, and online sharing platforms.
Innovation – Business intelligence
Innovation for the CRA is about finding new solutions, and doing things better, more efficiently, and in new ways. Business intelligence is one of the enablers for innovative solutions. The CRA considers business intelligence an opportunity risk. This is because the range of benefits could include enhancing the detection of non-compliance, influencing taxpayer behaviour, better informing revenue administration policy research, and improving services to Canadians. This risk is driven by the accessibility to big volume, complex data, as well as by the strength of the Agency's human resources capacity through its recruitment and development of a specialized workforce.
Planned Expenditures
The financial and human resource information presented in this plan includes all of those items for which the Canada Revenue Agency has received approval as of February 1, 2016. Any approvals for funding adjustments received after that date will be reflected in future documents.
(dollars) | 2016-17 Main Estimates |
2016-17 Planned |
2017-18 Planned |
2018-19 Planned |
---|---|---|---|---|
Canada Revenue Agency | 4,082,482,329 | 4,082,482,329 | 3,928,125,099 | 3,918,631,281 |
Taxpayers' Ombudsman | 3,235,854 | 3,235,854 | 3,227,940 | 3,234,541 |
Total | 4,085,718,183 | 4,085,718,183 | 3,931,353,039 | 3,921,865,822 |
(full-time equivalents) | 2016-17 Planned |
2017-18 Planned |
2018-19 Planned |
---|---|---|---|
Canada Revenue Agency | 37,847 | 37,444 | 36,971 |
Taxpayers' Ombudsman | 31 | 31 | 31 |
Total | 37,878 | 37,475 | 37,002 |
Budgetary Planning Summary for Strategic Outcomes and Programs (dollars)
Program | 2013-14 Expenditures | 2014-15 Expenditures | 2015-16 Forecast Spending | 2016-17 Main Estimates |
2016-17 Planned Spending |
2017-18 Planned Spending |
2018-19 Planned Spending |
---|---|---|---|---|---|---|---|
Taxpayer and Business Assistance | 350,801,699 | 292,809,925 | 290,364,894 | 412,286,804 | 412,286,804 | 280,544,765 | 281,256,789 |
Assessment of Returns and Payment Processing | 649,108,155 | 640,377,518 | 687,698,295 | 503,182,149 | 503,182,149 | 496,115,166 | 493,780,046 |
Reporting Compliance | 1,084,562,230 | 1,108,667,741 | 1,092,386,302 | 1,067,140,214 | 1,067,140,214 | 1,062,160,684 | 1,054,616,518 |
Collections, Compliance, and Verification | 496,787,602 | 519,837,234 | 491,303,158 | 632,051,666 | 632,051,666 | 618,542,264 | 616,220,531 |
Appeals | 190,219,456 | 204,406,362 | 182,669,682 | 185,568,739 | 185,568,739 | 185,234,324 | 185,573,890 |
Subtotal | 2,771,479,142 | 2,766,098,780 | 2,744,422,331 | 2,800,229,572 | 2,800,229,572 | 2,642,597,203 | 2,631,447,774 |
Program | 2013-14 Expenditures | 2014-15 Expenditures | 2015-16 Forecast Spending | 2016-17 Main Estimates |
2016-17 Planned Spending |
2017-18 Planned Spending |
2018-19 Planned Spending |
---|---|---|---|---|---|---|---|
Benefit Programs | 374,414,324 | 351,409,527 | 389,834,229 | 434,832,503 | 434,832,503 | 441,578,904 | 447,739,404 |
Subtotal | 374,414,324 | 351,409,527 | 389,834,229 | 434,832,503 | 434,832,503 | 441,578,904 | 447,739,404 |
Program | 2013-14 Expenditures | 2014-15 Expenditures | 2015-16 Forecast Spending | 2016-17 Main Estimates |
2016-17 Planned Spending |
2017-18 Planned Spending |
2018-19 Planned Spending |
---|---|---|---|---|---|---|---|
Taxpayers' Ombudsman2 | 2,524,101 | 2,614,097 | 3,261,289 | 3,235,854 | 3,235,854 | 3,227,940 | 3,234,541 |
Subtotal | 2,524,101 | 2,614,097 | 3,261,289 | 3,235,854 | 3,235,854 | 3,227,940 | 3,234,541 |
Subtotal | 2013-14 Expenditures | 2014-15 Expenditures | 2015-16 Forecast Spending | 2016-17 Main Estimates |
2016-17 Planned Spending |
2017-18 Planned Spending |
2018-19 Planned Spending |
---|---|---|---|---|---|---|---|
Internal Services Subtotal | 914,441,789 | 940,711,586 | 1,084,008,294 | 847,420,254 | 847,420,254 | 843,948,992 | 839,444,103 |
2013-14 Expenditures | 2014-15 Expenditures | 2015-16 Forecast Spending | 2016-17 Main Estimates |
2016-17 Planned Spending |
2017-18 Planned Spending |
2018-19 Planned Spending |
|
---|---|---|---|---|---|---|---|
Total | 4,062,859,356 | 4,060,833,990 | 4,221,526,143 | 4,085,718,183 | 4,085,718,183 | 3,931,353,039 | 3,921,865,822 |
The reduction in Forecast and Planned Spending over the planning period (from $4.222 billion in 2015-16 to $3.922 billion in 2018-19) is primarily attributable to:
- certain technical adjustments that are reflected only in 2015-16 including a carry-forward of funds from 2014-15 and funding for maternity and severance benefits;
- the sunset of funding received for special projects and the conclusion of the Softwood Lumber Agreement, as well as adjustments for accommodation and real property services, the Canada School of Public Service, and funding for the Government advertising program; and
- the implementation of initiatives to improve efficiency.
Alignment of Spending With the Whole-of-Government Framework
Alignment of 2016-17 Planned Spending With the Whole-of-Government Frameworkv (dollars)
Program | Spending Area | Government of Canada Outcome | 2016-17 Planned Spending |
---|---|---|---|
Taxpayer and Business Assistance | Government Affairs | A transparent, accountable and responsive federal government | 412,286,804 |
Assessment of Returns and Payment Processing | Government Affairs | Well-managed and efficient government operations | 503,182,149 |
Reporting Compliance | Government Affairs | Well-managed and efficient government operations | 1,067,140,214 |
Collections, Compliance, and Verification | Government Affairs | Well-managed and efficient government operations | 632,051,666 |
Appeals Government Affairs | Government Affairs | A transparent, accountable and responsive federal government | 185,568,739 |
Program | Spending Area | Government of Canada Outcome | 2016-17 Planned Spending |
---|---|---|---|
Benefit Programs | Economic Affairs | Income security and employment for Canadians | 434,832,503 |
Program | Spending Area | Government of Canada Outcome | 2016-17 Planned Spending |
---|---|---|---|
Taxpayers' Ombudsman | Government Affairs | A transparent, accountable and responsive federal government | 3,235,854 |
Spending Area | Total Planned Spending |
---|---|
Economic affairs | 434,832,503 |
Social affairs | – |
International affairs | – |
Government affairs | 2,803,465,426 |
CRA Spending Trend
(dollars) | 2013-14 Actuals | 2014-15 Actuals | 2015-16 Forecast Spending | 2016-17 Planned Spending | 2017-18 Planned Spending | 2018-19 Planned Spending |
---|---|---|---|---|---|---|
Statutory authorities | 902,057,364 | 817,112,935 | 833,651,118 | 1,016,533,269 | 887,439,425 | 889,761,756 |
Voted | 3,160,801,992 | 3,243,721,055 | 3,387,875,025 | 3,069,184,914 | 3,043,913,614 | 3,032,104,066 |
Total | 4,062,859,356 | 4,060,833,990 | 4,221,526,143 | 4,085,718,183 | 3,931,353,039 | 3,921,865,822 |
Planned Spending refers to amounts in Main Estimates, as well as any other additional funding for inclusion in the Agency's reference levels, approved by Treasury Board no later than February 1, 2016. In fiscal year 2016-17 Planned Spending is identical to expenditure levels presented in the Main Estimates.
The Planned Spending trend shows all parliamentary appropriations (Main Estimates and Supplementary Estimates) and revenue sources provided to the Canada Revenue Agency for: policy and operational initiatives arising from various federal budgets and economic statements; transfers from the Department of Public Services and Procurement Canada for accommodations and real property services; disbursements under the Softwood Lumber Agreement; responsibilities related to the harmonization of sales tax; the children's special allowance payments, as well as the implementation of initiatives to improve efficiency.
Total spending for fiscal years 2013-14 to 2015-16, also includes certain technical adjustments such as the CRA's carry forward adjustments from the previous year and funding for maternity and severance benefits.
Over the period 2013-14 to 2018-19, the CRA's appropriations show a decline, primarily as a result of the funding received for the upgrade of the individual income tax processing system and various wage settlements being more than offset by decreases due to the following:
- the implementation of initiatives to improve efficiency;
- the fluctuation in the CRA's Statutory Authorities for the disbursements to the provinces under the Softwood Lumber Products Export Charge Act, 2006 and the rates of the contributions to employee benefit plans;
- the decrease in funding for the implementation of the Harmonized Sales Tax, the Affordable Living Tax Credit for Nova Scotia; and the administration of the Softwood Lumber Agreement;
- other miscellaneous reductions such as transfers to Public Services and Procurement Canada for accommodation and real property services; adjustment to funding previously transferred to Shared Services Canada; and the transfer to Canada School of Public Service.
Estimates by Vote
For more information on the CRA's organizational appropriations, consult the 2016-17 Main Estimatesvi.
Table Notes
1 This priority is ongoing–committed to at least three fiscal years prior to the subject year of the report.
2 Since the Taxpayers' Ombudsman operates at arm's-length from the CRA, this report does not reflect the activities of that office.
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