Section I: Organizational overview

Raison d'être

The Canada Revenue Agency (CRA) is responsible for administering, assessing, and collecting hundreds of billions of dollars in taxes annually. The tax revenue it collects is used by federal, provincial, territorial, and First Nations governments to fund programs and services that contribute to the quality of life of Canadians.

No other public organization touches the lives of more Canadians on a daily basis. The CRA uses its federal infrastructure to deliver benefits, tax credits, and other services that support the economic and social well-being of Canadian families, children, and persons with disabilities.

The CRA contributes to three of the Government of Canada's outcome areas:

• a transparent, accountable, and responsive federal government;
• well-managed and efficient government operations; and
• income security and employment for Canadians.

Responsibilities

The CRA is mandated to administer tax, benefit, and other programs for the Government of Canada and provincial, territorial, and certain First Nations governments.

In carrying out its mandate the CRA strives to make sure that Canadians:

• pay their required share of taxes;
• receive their rightful share of entitlements; and
• are given an impartial and responsive review of contested decisions.

The following two strategic outcomes summarize the CRA's contribution to Canadian society.

• Taxpayers meet their obligations and Canada's revenue base is protected.
• Eligible families and individuals receive timely and correct benefit payments.

The achievement of these outcomes shows that we are fulfilling our mandate from Parliament.

In addition to the administration of income tax and benefit programs, the CRA now administers harmonized sales tax for five provinces. The CRA also verifies taxpayer income levels in support of a wide variety of federal, provincial, and territorial programs, ranging from student loans to health care initiatives. In addition, we provide other services, such as the Refund Set-Off Program, through which we aid other federal agencies and departments, as well as provincial and territorial governments, in the collection of debts that might otherwise become uncollectible.

Strategic outcomes and program activity architecture

Organizational priorities

Risk analysis

The CRA develops an annual Corporate Risk Profile (CRP) which provides an overview of the enterprise-level risks that could impact our ability to achieve our outcomes. Factoring in changes in our operating environment, these risks are identified, assessed, and when necessary, mitigating action plans are developed. Throughout the year, risks are monitored and reported on to ensure that action plans remain adequate and that course correction measures are implemented when needed.

Resulting from current and previous CRPs, we have developed and are actively monitoring the implementation of action plans for 18 of the CRA's 31 enterprise-level risks. These risks, and their related action plans, focus on five primary themes of the CRP.

Protecting the revenue base

We play a critical role in collecting the revenue base for government. We continue to target areas of non-compliance like the underground economy and aggressive tax planning. Engagement with key partners also continued to assist the CRA in its efforts to reduce non-compliance. This included work with Canadian and international partners through the Federal-Provincial-Territorial Underground Economy Working Group and the Organization for Economic Cooperation and Development to share intelligence and best practices to combat all areas of non-compliance. For information about additional actions related to protecting the revenue base, see the following parts of Section II: Assessment of Returns and Payment Processing (PA2), Accounts Receivables and Returns Compliance (PA3), Reporting Compliance (PA4), and Appeals (PA5).

Enablers: resources, systems, and processes

Strong support functions are critical to the successful delivery of our programs and services. We continue to focus on key enablers like human and financial resources, and information technology (IT). This year, to help address IT sustainability, we entered into a tri-lateral agreement with the Bank of Canada and Public Works and Government Services Canada to jointly acquire data centres services in the National Capital Region from the private sector. We also ensured a collaborative and well-managed transfer of resources and related internal service functions to Shared Services Canada. For information about additional actions undertaken to support our key enablers, see the following part of Section II: Internal Services (PA7).

The ability to move forward and evolve

We need an agile and capable workforce to respond to changes while steering the organization towards our long-term vision. This is key to ensuring that we are able to respond to change effectively and in a timely manner. To that end, we published an updated version of our Agency Strategic Workforce Plan, released a first set of Agency Learning Priorities, and advanced our Leadership Continuum, which ensures a more strategic and integrated approach to leadership learning and development. In addition to these efforts, we continued to enhance and expand a number of electronic services such as My Account and My Business Account. For information about additional actions undertaken to evolve the CRA, see the following part of Section II: Internal Services (PA7).

Capitalizing on information and knowledge

Corporate intelligence plays a pivotal role in informing decision-making throughout the organization. The CRA remains committed to capitalizing on the valuable knowledge, information, and data it holds. We continued to address the risk of not having appropriately managed information through the implementation of the Data Stewardship Program which will help to manage data as a corporate asset with a high level of quality and horizontally. We developed a draft Knowledge Management Framework that will promote retention and sharing of information. For information about actions undertaken to leverage these assets, see the following part of Section II: Internal Services (PA7).

Maintaining public trust

Trust is a key component in the relationship between taxpayers, benefit recipients, and our organization. Through actions like protecting the confidentiality of the personal and business information collected, and ensuring that taxpayers and benefit recipients are well informed, the CRA aims to maintain public confidence. To ensure the continued protection of information, this year we implemented the first phase of the Identity and Access Management initiative and continued our work to modernize our National Audit Trail System. In addition, we adapted and simplified our communication methods, including enhancements to our website and electronic services, to ensure clear and accessible information. For information about additional actions undertaken to maintaining public trust, see the following parts of Section II: Taxpayer and Business Assistance (PA1), Benefit Services (PA6) and Internal Services (PA7).

By integrating enterprise risk management into the corporate planning and reporting cycle, the CRA is able to ensure that risks are factored in plans and priorities and properly managed through action plans so that we can deliver on our mandate and achieve our strategic outcomes. A full mapping of our enterprise-level risks to our program activities can be found in Section IV: Other items of Interest.

Summary of performance

Summary of performance tables

Contribution to the federal sustainable development strategy

The Federal Sustainable Development Strategy (FSDS) outlines the Government of Canada's commitment to improving the transparency of environmental decision-making by articulating its key strategic environmental goals and targets. The CRA ensures that consideration of these outcomes is an integral part of its decision-making processes.

The CRA contributes to Theme IV – Shrinking the Environmental Footprint – Beginning with Government as denoted by the visual identifier below.

Strategic environmental assessment

A Strategic Environmental Assessment is a systematic and comprehensive process for assessing the positive and negative environmental effects of a proposed policy, plan, or program and its alternatives.

During 2011-12, the CRA considered the environmental effects of initiatives subject to the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals.

Preliminary assessments of CRA initiatives demonstrated that none required a Strategic Environmental Assessment. Consequently, no FSDS themes were affected, or public statements produced.

Additional information is available electronically as follows:

• directive on the Environmental Assessment of Policy, Plan and Program Proposals – please visit www.ceaa.gc.ca/?lang=En&n=B3186435-1
• complete details on the Federal Sustainable Development Strategy – please visit www.ec.gc.ca/dd-sd/?lang=En&n=C2844D2D-1
• information on the CRA Sustainable Development Strategy 2011-2014, Sustainable Development Performance Report, and activities that relate to the environmental, economic, and social pillars of sustainable development – please visit: www.cra-arc.gc.ca/gncy/sstnbl/menu-eng.html

Expenditure profile

For the period 2007-2008 to 2011-2012, total spending amounts include all Parliamentary appropriations and revenue sources: Main Estimates, Supplementary Estimates, funding associated with the increased personnel costs of collective agreements, maternity allowances and severance payments, as well as funding to implement Federal Budget initiatives and the CRA's carryforward adjustments from the prior year. It also includes spending of revenues received through the conduct of CRA's operations pursuant to Section 60 of the Canada Revenue Agency Act, Children's Special Allowance payments, payments to private collection agencies pursuant to Section 17.1 of the Financial Administration Act and disbursements to the provinces under the Softwood Lumber Products Export Charge Act, 2006.

Since 2007-2008 the Canada Revenue Agency's reference levels have changed primarily as a result of: collective agreements/contract awards; policy and operational initiatives arising from various Federal Budgets and Economic Statements; transfers from the Department of Public Works and Government Services Canada for accommodations and real property services; the commencement of responsibilities related to the administration of corporate tax in Ontario and the harmonization of sales tax in Ontario and British Columbia; and the creation of Shared Services Canada.

The CRA's Statutory Authorities have also fluctuated over the course of the 2007-2008 to 2011-2012 period as a result of: adjustments to the Children's Special Allowance payments for eligible children in the care of specialized institutions; adjustments to the rates for the contributions to employee benefit plans; increases to the spending of revenues received through the conduct of operations pursuant to Section 60 of the Canada Revenue Agency Act; the introduction from 2007-2008 to 2009-2010 of payments to private collection agencies pursuant to Section 17.1 of the Financial Administration Act; and finally, the introduction in 2006, and annual adjustments to, disbursements to the provinces under the Softwood Lumber Products Export Charge Act, 2006.

In 2011-2012, of the $4,610.1 million total authority, CRA's actual spending totalled $4,351.3 million resulting in $258.8 million remaining unexpended at year-end. After deducting unused resources to be returned to the Treasury Board of Canada related to Government advertising campaigns and a frozen allotment for the Foreign Investment Entities and Non-Resident Trusts legislative initiative which has not yet received Royal Assent, the remaining $248.3 million is available for use by the CRA in 2012-2013. This amount represents 5.4% of the total authority.

Authorities approved after Main Estimates

The following table details the additional authorities approved for the Canada Revenue Agency after the tabling in Parliament of Main Estimates and reconciles with the total authorities.

Estimates by vote

For information on Canada Revenue Agency organizational Votes and/or statutory expenditures, please see the Public Accounts of Canada 2012 (volume II). An electronic version of the Public Accounts is available at http://www.tpsgc-pwgsc.gc.ca/recgen/txt/72-eng.html.

Date modified:

2012-11-08