Summary of the Corporate Business Plan 2014-2015 to 2016-2017

Assessment of returns and payment processing

Program description

Our activities in assessment of returns and payment processing make it easier for individuals and businesses to meet their filing, reporting, and payment obligations. We assess, process, and adjust tax returns for individuals and businesses. We review the information provided for correctness. We detect non-compliance through risk assessment and third-party data matching.

Budgetary financial resources (dollars)
2014-15
Main Estimates
2014-15
planned spending Footnote 1
2015-16
planned spending Footnote 1
2016-17
planned spending Footnote 1
597,018,261 598,411,852 619,375,174 613,033,592
Human resources
(full-time equivalents)
2014-15 2015-16 2016-17
6,671 6,735 6,679

What we want to achieve

To provide online services with a view to making it easier for individuals and businesses to file their tax returns, make payments, and apply for benefits online, accurately, and on a timely basis. To deliver efficient and effective high-volume assessment and processing of individual and business tax returns and payments.

Strategic context

An increasing number of Canadians choose to file returns and make payments online. In 2013, 76% of individuals filed their T1 tax return electronically, and 70% of corporations used online filing for their corporate tax returns. In the same period, My Business Account, our secure online portal for business transactions, registered a 76% increase in annual transactions. Our online filing and payment services are essential to reducing red tape for business and continual improvement in services to Canadians. Canadians want services to be easy to access and use, and they want online services to be comprehensive so that they can self-serve when and where they choose. We are responding to the need to design online services that are convenient and simple to use, while maintaining the high level of security and reliability that has always been the CRA's top priority.

Online services help the CRA to meet its efficiency objectives while responding to taxpayers' expectations. We are able to process electronic returns and payments faster, and at less cost, than traditional paper options. Often, electronic services result in fewer errors because there are fewer manual steps. However, we recognize that not all Canadians prefer online service options. It is our responsibility to make sure that taxpayers have the services they need to comply. We will maintain traditional alternatives for those who choose to use them, and develop tailored support for groups like seniors, first time filers and new Canadians, who may have unique needs.

Expanding e-services

The CRA is committed to modernizing the way it delivers services. We recognize that Canadians want to interact with us through secure and electronically-enabled delivery channels that respect their privacy. By expanding our suite of flexible and convenient online services, we are giving taxpayers more opportunities to interact with us when and where it is convenient for them to do so.

Over the planning period, we will redesign our My Business Account portal to make it easy for businesses to use, provide more flexible payment options, and enable taxpayers and businesses to provide documentation electronically.

Individual returns and payment processing

Budgetary financial resources (dollars)
2014-15
planned spending
2015-16
planned spending
2016-17
planned spending
315,235,616 338,539,478 335,694,604
Human resources
(full-time equivalents)
2014-15 2015-16 2016-17
4,329 4,425 4,430

Each year, the CRA assesses more than 27 million income tax and benefit returns for individuals. We process these returns and enter the information into our systems to update taxpayer accounts and determine the current status of their tax obligations. We then store the returns for future reference. We carry out activities to detect non-compliance both before and after tax returns are assessed. When we find errors on tax returns, we correct them. Our goal is to process returns and payments as quickly and accurately as possible so that Canadians maintain confidence in the integrity of Canada's self-assessment tax system and Canada's revenue base is protected.

SERVICE EXCELLENCE: Going mobile

New technologies are changing the way Canadians interact, seek information, and do business. As a result, the CRA must be ready to deliver and receive digital information and services anytime, anywhere, and on any device. We must also do so safely, securely, and efficiently.

We are responding to this evolving environment by testing new mobile applications. In the future, we expect our mobile applications to be a vital component of our e-service portfolio. We believe the movement to mobile services has the potential to improve our service accessibility, availability, and responsiveness.

e-services

The CRA has established a strong foundation in e-services and will continue to expand the range of functions which taxpayers and representatives can do online. We also work to make these services as simple and intuitive as possible. Secure online services offer taxpayers the convenient option of filing tax returns and making payments electronically. These improvements respond to taxpayers needs and are key to delivering services in a cost-effective way.

For taxpayers who interact with us frequently, our current My Account portals work best, and their use continues to grow. We are carrying out plans to e-enable a number of services not available online at this time so that taxpayers can view more of their account information and conduct more transactions online.

Improving our online services is not only about making existing information and transactions available online but also about envisioning new services to make it easier and faster for taxpayers to meet their tax obligations. For example, we will improve our secure online portals by adding new and innovative electronic options for people to submit documents, to receive notices and information, and to make payments.

Over the planning period, we will:

Income tax systems renewal

Our systems are essential for the assessment, processing and matching of the millions of personal income tax returns received each year. Our activities provide Canada, the provinces, and the territories with their principal source of revenue, representing approximately $160 billion in administered revenues annually.

The CRA's personal income tax systems will be redesigned and updated to unify the 30-year old income tax assessing and accounting systems. The project will create a strong, flexible, and resilient foundation for the personal income tax program and position the CRA to achieve its longer term goals (for example, expanding e-services).

Over the planning period, we will:

Detect and correct

Although quality service helps to promote compliance, there are some instances where individuals and businesses either unintentionally or intentionally fail to fully comply. Our robust system of checks and controls includes both prevention and detection.

We analyze tax returns to find common errors, like an amount placed on the wrong line, and to detect gaps in information or services. We also catch inadmissible claims through an initial review of tax credits and amounts claimed. Finding and fixing errors as part of our early intervention program helps us resolve non-compliance in the least intrusive way and minimizes the risk of taxpayers paying penalties and interest. We also identify unclaimed tax credits and overpayments for taxpayers, and adjust income tax returns to reflect the benefits in their favour.

We continue our review of income tax and benefit returns after notices of assessment are sent. We select files and contact taxpayers to request further information to verify claims made on tax returns. We also compare the information we have from third parties with the information reported on tax returns. We review corporation income tax returns to ensure the accuracy and validity of corporation income tax assessments. If we can address non-compliance before the behaviour escalates or becomes habitual, we can reduce the need for subsequent enforcement actions.

Over the planning period, we will:

INTEGRITY AND SECURITY: Controlling employee access

Protecting privacy and confidentiality rights is central to the integrity of the CRA. To meet their tax obligations, Canadians must give us personal and financial information, and trust that their information is only accessed or disclosed on a need-to-know basis for authorized purposes. We operate under an ever-improving rigorous system of checks and controls to make sure this trust is well-founded. We are introducing new technologies to tighten controls over employee access to sensitive information to ensure the CRA's reputation as a trusted tax administration is maintained.

Business returns and payment processing

Budgetary financial resources (dollars)
2014-15
planned spending
2015-16
planned spending
2016-17
planned spending
283,176,236 280,835,696 277,338,988
Human resources
(full-time equivalents)
2014-15 2015-16 2016-17
2,342 2,310 2,249

We process about 2.1 million corporate income tax returns and over seven million GST/HST returns. Revenu Québec is responsible for administering the GST/HST in Quebec in return for financial compensation from the Government of Canada. We will continue to ensure that the administration of the GST/HST in Quebec complies with the terms of the agreement and that GST/HST funds are identified and collected.

Our My Business Account is a secure online portal for business owners to have immediate access to their information and to manage various business accounts including GST/HST, payroll, corporation income taxes, excise taxes, and excise duties.

This portal is important for business owners who want to monitor their tax affairs closely. For instance, businesses can now sign up to receive their notice of assessment and reassessment through My Business Account. We are also opening up new avenues to pay taxes, for example, through electronic pre-authorized debit.

My Business Account is at the centre of our strategy to empower business owners and to reduce the cost, time, and effort which goes into complying with Canada's tax laws. We are making service improvements to this portal to deliver on the needs and expectations of business owners.

Over the planning period, we will:

Business number

Voluntary compliance and self-assessment form the basis of the CRA tax administration and are facilitated by helping businesses to comply with their registration requirements. Introduced in 1994 to simplify business interaction with the CRA for its core tax programs, the Business Number (BN) is now voluntarily used as the common business identifier for multiple levels of government. A common business identifier is a critical enabler for tailored service access, a single electronic account, and enhanced service delivery for business.

Over the planning period, we will:

/gncy/bsnss_plns/2014/images/147205415_20-eng.txt

Conclusion

We will improve service to Canadians and reduce red tape by making our e-services easier to use, and by introducing new e-services that allow individuals and businesses to self-serve when and where they choose. We will ensure that we respond to the needs of all Canadians by maintaining traditional alternatives to e-services and developing tailored support for taxpayer segments that need it. We will improve the ability of our compliance activities to detect and correct errors early in the reporting process, helping taxpayers to get it right from the start and reducing the need for subsequent, often more costly, enforcement actions.

Strategic outcome: taxpayers meet their obligations and Canada's revenue base is protected

We use the following expected results and performance indicators to assess whether we are meeting our overall strategic outcome.

Expected results: Individuals, businesses and registrants are provided timely and accurate tax assessment notices and tax payment processing
Performance indicators Targets Date to be achieved
Processing T1 individual income tax returns (paper) within an average of four to six weeks 100% March 2015
Processing T1 individual income tax returns (electronic) within an average of two weeks of receipt 100% March 2015
Processing T3 trust returns within four months 95% March 2015
Responding to taxpayer-requested adjustments (T1) within an average of two weeks (electronic) 100% March 2015
Responding to taxpayer-requested adjustments (T1) within an average of eight weeks (paper) 100% March 2015
Processing T2 corporation income tax returns (paper) in 90 calendar days or less 90% March 2015
Processing T2 corporation income tax returns (electronic) in 45 calendar days or less 90% March 2015
Processing GST/HST returns within 30 calendar days of receipt 95% March 2015
Processing excise tax, excise duty, softwood lumber returns, and air travellers' security charge returns in 60 calendar days or less of receipt 95% March 2015
Expected results: Individual taxfilers receive timely and accurate assessment notices
Performance indicators Targets Date to be achieved
Percentage of individual (T1) returns processed accurately 98% March 2015
Percentage of individual (T1) returns received on time processed by mid-June 98% March 2015
Expected results: Individuals file electronically
Performance indicators Targets Date to be achieved
Individual (T1) electronic filing rates 80% March 2015
Expected results: Validation activities detect and address non-compliance by individuals with the reporting requirements of the acts
Performance indicators Targets Date to be achieved
Percentage of planned validation reviews of individual returns (T1) completed 100% March 2015
Ratio of average dollar value assessed for targeted vs. random reviews Minimum ratio of 2:1 March 2015
Expected results: Business taxfilers receive timely and accurate assessment notices and payment processing
Performance indicators Targets Date to be achieved
Percentage of T2 returns processed accurately 98% March 2015
Expected results: Remittances of payments to the Receiver General are processed on time
Performance indicators Targets Date to be achieved
Percentage of payments to the Receiver General deposited within 24 hours of receipt 96% March 2015

Page details

Date modified: