Annual Report to Parliament 2014-2015
Program: Assessment of Returns and Payment Processing
28M
We processed more than 28 million income tax returns for individuals
Subprogram descriptions
Individual Returns and Payment Processing
All of our digital and traditional services are designed to make it easier for taxpayers to meet their tax obligations. Our vision is to provide taxpayers with user-centric, secure digital services to help meet every requirement.
Most individual taxpayers and benefit recipients rely on our secure digital channels as their preferred service option. Electronic filing for individual T1 filers reached 82% in the 2015 filing season, up from 80% in 2014, and we saw a corresponding decrease in paper filing. The increase in electronic filing is in part due to enhancements and new electronic service functions such as the ability to file prior-year returns for EFILE and NETFILE.
Users can access our digital services through My Account, a secure portal for viewing personal income tax and benefit information and managing tax affairs. The My Account registration process was streamlined in February 2015 to allow limited access to low-risk information such as the condensed notice of assessment or reassessment, status of tax return, current-year RRSP and TFSA limits, and online mail. Users must enter a security code to access the full suite of My Account services and to view the detailed notice of assessment or re-assessment.
To further enhance digital services, we introduced an online mail service allowing individuals to receive some correspondence such as notices of assessment and reassessment directly in My Account. Once individuals register for this service, eligible correspondence is no longer printed and mailed to them. Instead, a notification is sent to their email address when new mail is available for them to view in My Account. For security reasons, we do not send any secure information by email.
We added a variety of new digital features this past year:
- We expanded EFILE to accept electronically filed T1 returns for the 2012 and 2013 years. This made it easier for a tax preparer to file an original tax return for a previous year.
- We launched the Tax Data Delivery service in February 2015 which allows authorized representatives, using EFILE certified software, to request the secure electronic transmission of tax information from the CRA to automatically complete portions of an individual's tax return. As of July 31, 2015, the service delivered tax information for over 911,000 taxpayer accounts during the 2015 filing season.
- We launched pre-authorized debit, an online, self-service, payment option through which taxpayers can authorize the CRA to withdraw a predetermined amount from their bank account on a specific date or dates. Individuals and businesses can now set up and manage pre-authorized debits within the CRA's secure My Account or My Business Account services. Also, all T1 and NETFILE software now has a "Pay Now" button.
Key results
- 82% of individual returns were filed electronically for the 2015 filing season.
- 74% of payments were received electronically (including payments remitted at financial institutions) for 2014-2015.
- We processed 28 million income tax returns for individuals.
- 18 million logins were made to My Account by individuals and representatives.
- 54.5% of T1 refunds were made by direct deposit, a 3.6% increase over 2013-2014.
- 732,797 individuals newly enrolled in My Account.
- Representatives accessed over 9 million individual accounts through Represent a Client.
- We assessed over $1.7 billion in additional taxes owing by verifying claims for errors, reviewing high-risk claims, and matching the information in filed returns to third-party data.
- 305,667 individual returns were reviewed and taxpayers received beneficial adjustments to their tax returns in excess of $98 million.
My Account is
- Convenient – It is available 7 days a week.
- Easy to use – After registering, simply log in with your CRA user ID and password or use your login information from one of our Sign-in Partners.
- Fast – Information is up-to-the-minute and transactions are processed immediately.
- Secure – The CRA user ID and password are just part of the security.
www.cra.gc.ca/myaccountvii
IN FOCUS
Going mobile
Mobile apps provide taxpayers access to key services through their mobile devices. As Canadians spend more time on smartphones and tablets and less time on personal computers, the CRA will make sure its Internet services and content are optimized and accessible for mobile apps. Mobile apps add to the multiple channels we provide for taxpayers to access the services they need to voluntarily comply with Canada's tax laws.
In February 2015 we launched MyCRA, a Web-based mobile app to enable taxpayers to securely access key parts of their tax information wherever they are, through any mobile device. MyCRA lets users view:
- notices of assessment
- return status
- RRSP deduction and TFSA contribution room
- benefit and credit payment dates
- a directory of EFILE tax professionals and a list of free tax filing software
- the date and location of Community Volunteer Income Tax clinics
- the CRA's Charities Listings, making it easier to choose and donate to a charity
- My Payment connected to MyCRA app
The Business Tax Reminders mobile app is one way we are reducing red tape for businesses. Users can create their own custom reminders and alerts for key CRA due dates for instalment payments, returns, and remittances. This mobile app is recommended for small and medium-sized businesses with annual revenue of $20 million or less and fewer than 500 employees. The app was created after consulting with small and medium-sized businesses and allows users to:
- create custom reminders for key CRA due dates related to instalment payments, returns, and remittances
- customize and tailor the reminder system for their personal business deadlines with either calendar or pop-up messages
Business Returns and Payment Processing
The CRA's digital services are the preferred service channel for more businesses and tax representatives. The majority of corporation income tax returns and GST/HST returns are filed online and 2.3 million business numbers are registered for My Business Account, our online business portal. Each year we improve our digital services based on user feedback, research on task identification and success rates, and time to complete key tasks. We also add new features and services to reduce red tape and make it easier to get timely information and comply with tax obligations.
Improvements made during 2014-2015 include the following:
- We added new services for GST/HST registrants using My Business Account. They can file GST/HST elections forms GST 20-1 and RC7220-1 electronically. They can choose to stop receiving a paper copy of the combined GST/HST and QST return and they can file amended returns.
- We added options to My Business Account to allow businesses with payroll accounts to request transfers and search payments online.
- Authorized representatives can now sign up through Represent a Client to receive their business clients' notices, letters, and statements electronically.
- Businesses can update their direct deposit information online, access the first free online option for tax payment, and get a detailed payment history for all accounts.
- Corporations can file amended T2 corporation tax returns using commercial tax preparation software.
- Partnerships can file their information returns electronically.
- GST/HST registrants can send supporting GST/HST documentation electronically through the Submit Documents service when we ask them to validate information on tax returns.
- Using the Represent a Client service, representatives can submit an authorization electronically and provide the signed consent form through the CRA's Submit Documents service.
The majority of businesses and their tax representatives access our digital services through My Business Account, our secure online business portal to accounts including GST/HST (except for GST/HST accounts administered by Revenu Québec), payroll, corporation income taxes, excise taxes, excise duties, and more.
Key results
- 86% of corporation income tax returns were filed online.
- Over 5 million logins were made to My Business Account by owners and representatives.
- Another 109,829 new business owners enrolled in My Business Account since last year. More than 2 million businesses are now registered.
- Representatives accessed close to 5 million business accounts through Represent a Client.
- We responded to 6,392 business enquiries online.
- 79.1% of GST/HST returns were filed online.
- We identified more than $101 million in additional taxes owing on corporation income tax returns.
IN FOCUS
Cutting red tape for small and medium businesses
The CRA is committed to reducing red tape and making it easier for individuals and small and medium businesses to access CRA services and fulfil their tax obligations. We held Canada-wide red tape reduction consultations in the fall of 2014:
- we consulted with small and medium business owners and personnel, bookkeepers, accountants, and stakeholder associations
- approximately 350 people participated in 45 in-person consultations covering all provinces and territories
- approximately 120 people sent their views online or in writing
The feedback we received helped define our new priorities and will shape our red tape reduction action plans for the next three years.
Top recommendations from the business community and highlights of CRA plans
- Make it easier to find information and services on the Web
- the CRA will improve website search functions, develop fillable forms, and make navigation easier
- Provide information in language we can understand
- the CRA will reduce complexity and improve the clarity of language in forms, guides, and correspondence
- Improve the audit process
- the CRA will enhance auditor training and expand programs focused on helping and teaching small and medium businesses to become more compliant
- Help businesses get it right from the start
- the CRA will help small businesses as part of a good-start initiative, including outreach programs, webinars, and business checklists
- Add more digital services and tools
- the CRA will look into allowing email communication between the Agency and its clients
- Improve telephone services
- the CRA will streamline procedures and develop new tools for telephone service agents to better serve the business community by reducing the need for callers to repeat information and connecting callers to the right expert
- Offer more flexibility for filing deadlines and payment schedules
- the CRA will adjust the frequency of remittances
| Program/ Subprogram |
2014-15 Main Estimates |
2014-15 Total Authorities |
2014-15 Planned1 |
2014-15 Actual2 |
2014-15 Difference (Planned minus Actual) |
|---|---|---|---|---|---|
| Assessment of Returns and Payment Processing | 597,018,261 | 689,410,927 | 627,544,966 | 640,377,518 | (12,832,552) |
| Individual Returns and Payment Processing | 315,235,616 | 335,690,942 | (20,455,326) | ||
| Business Returns and Payment Processing | 312,309,350 | 304,686,576 | 7,622,774 |
| Program/ Subprogram |
2014-15 Planned |
2014-15 Actual |
2014-15 Difference (Planned minus Actual) |
|---|---|---|---|
| Assessment of Returns and Payment Processing | 6,671 | 6,209 | 462 |
| Individual Returns and Payment Processing | 4,329 | 4,228 | 101 |
| Business Returns and Payment Processing | 2,342 | 1,981 | 361 |
Performance measurement
| Expected Result | Performance Indicator | Target | Actual Result |
|---|---|---|---|
| Individuals, businesses, and registrants are provided timely and accurate tax assessment notices and tax payment processing | Number of service standards targets met or mostly met relating to timeliness of processing for individual, business and GST/HST returns3 | 100% | 100% |
| Expected Result | Performance Indicator | Target | Actual Result |
|---|---|---|---|
| Individual taxfilers receive timely and accurate assessment notices | Number of service standards targets met or mostly met relating to T1 Individual and T3 trust returns activities3 | 100% | 100% |
| no data | Percentage of individual (T1) returns processed accurately | 98% | 98.9% |
| no data | Percentage of individual (T1) returns received on time processed by mid-June | 98% | 99.7% |
| Individuals file electronically | Individual (T1) electronic filing rates | 82% | 82% |
| Validation activities detect and address non-compliance by individuals with the reporting requirements of the Acts | Percentage of planned validation reviews of individual returns (T1) completed | 100% | 101% |
| no data | Ratio of average dollar value assessed for targeted vs random reviews | Minimum ratio of 2:1 | 2.54:1 |
| Expected Result | Performance Indicator | Target | Actual Result |
|---|---|---|---|
| Business taxfilers receive timely and accurate assessment notices and payment processing | Number of service standards targets met or mostly met relating to business taxfilers (T2, GST/HST, excise and other levies) activities3 | 100% | 100% |
| no data | Percentage of T2 returns processed accurately | 98% | 98.3% |
| Remittance of payments to the Receiver General are processed on time | Percentage of payments to the Receiver General are deposited within 24 hours of receipt | 96% | 98% |
Table Notes
1. Planned spending excludes severance payments, parental benefits, vacation credits, the one-time transition payment for implementing the pay-in-arrears model, and the carry-forward of unused funds from 2013-2014 under the CRA's two-year spending authority. This funding is received during the fiscal year and is included only in actual spending.
2. Modified cash basis, based on Parliamentary appropriations used. See Parliamentary appropriations for an explanation of how actual spending relates to results in the CRA Financial Statements – Agency Activities.
3. Details on our service standards are in Appendix B.
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