2015-16 Report on Plans and Priorities

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Section 1: Organizational expenditure overview

Organizational profile

Appropriate Minister: The Honourable Kerry–Lynne D. Findlay, P.C., Q.C., M.P.

Institutional head: Andrew Treusch

Ministerial portfolio: National Revenue

Enabling instrument: 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 Canada Revenue Agency (CRA) administers tax, benefits, and related programs, and ensures compliance on behalf of governments across Canada. The CRA activities provide these governments the revenue needed to deliver essential services to Canadians that lay the foundation for continued economic prosperity and future growth. The CRA processes hundreds of billions of dollars in taxes annually, and issues billions of dollars in benefit and credit payments.

The CRA's mandate is to ensure that Canadians:

• pay their required share of taxes;
• receive their rightful share of benefits; and
• are provided with an impartial review of decisions they choose to contest.

Responsibilities

The Agency has a broad range of responsibilities. In addition to 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 is also responsible for enforcing legislation governing charities, collecting tobacco taxes and duties, administering registered plans, and collecting non-tax debts for the federal government.

Serving taxpayers: The CRA provides taxpayers with the accurate and timely information they need to comply with Canada's tax laws through its website, call centres, technical publications, and through technical interpretations and rulings services. The Agency regulates charities and monitors and administers deferred income and savings plans to ensure they meet legislative requirements. It assesses and processes tax returns and payments for individuals and businesses as quickly and accurately as possible, providing taxpayers with early certainty to help them manage their tax affairs with confidence.

Promoting and enforcing tax compliance: The CRA identifies, addresses, and deters non-compliance with Canada's tax laws by promoting and enforcing compliance. The Agency promotes compliance through outreach activities, targeted taxpayer assistance, and by educating taxpayers about their reporting responsibilities. It undertakes domestic and international examinations, audits, and criminal investigations. It helps to ensure tax debt is resolved on a timely basis and enforce compliance with tax laws for registration, filing, withholding, and payment of debt obligations.

Facilitating redress: The CRA provides a fair and impartial redress process to resolve disputes and requests for relief arising from decisions made by the CRA. 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 good and services tax/harmonized sales tax credit and the universal child care benefit. The Agency ensures that the right benefit payment is made 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

• Program: Taxpayer and business assistance
  • Sub-program: Taxpayer services—enquiries and information products
  • Sub-program: Charities
  • Sub-program: Policy, rulings, and interpretations
  • Sub-program: Registered plans
• Program: Assessment of returns and payment processing
  • Sub-program: Individual returns and payment processing
  • Sub-program: Business returns and payment processing
• Program: Reporting compliance
  • Sub-program: International and large business
  • Sub-program: Small and medium enterprises
  • Sub-program: Criminal Investigations Program
  • Sub-program: Scientific research and experimental development
  • Sub-program: Voluntary Disclosures Program
• Program: Collections and returns compliance
  • Sub-program: Trust accounts—compliance
  • Sub-program: Non–filer—compliance
  • Sub-program: Collections—tax and government programs
• Program: Appeals
  • Sub-program: Income and commodity tax objections, determinations, and appeals to the courts
  • Sub-program: Canada Pension Plan/employment insurance appeals to the minister and appeals to the courts
  • Sub-program: Service complaints
  • Sub-program: Taxpayer relief

Strategic outcome: Eligible families and individuals receive timely and accurate benefit payments

• Program: Benefit programs
  • Sub-program: Benefit enquiries
  • Sub-program: Benefit programs administration
  • Sub-program: Statutory children's special allowance payments

Internal services

Organizational priorities

Priority: Service

TypeFootnote 1	Description	Strategic outcome
Ongoing	Why this is a priority: Our vision: We provide service which is fast, easy, convenient, and secure.	Taxpayers meet their obligations and Canada's revenue base is protected Eligible families and individuals receive timely and accurate benefit payments

Plans for meeting this priority:

• A new online mail service to let the CRA send email notifications to individuals who opt in for the service, prompting them to sign into My Account to read new correspondence. In 2015, individuals will be able to receive electronic notices of assessment. By 2017, 80% of CRA routine correspondence will be available electronically. Electronic correspondence will be designed to maximize clarity.
• A new mobile application planned for release in 2015, which will allow taxpayers to view basic personal tax information from their mobile device.
• Automatic population of tax preparation software with taxpayer information from the CRA—Tax Data Delivery—at the request of a taxpayer or an authorized representative, and with the highest degree of information security. This option will be available to tax preparers in 2015 and will be extended to individuals in 2016.
• New e-services, such as developing a new rulings e-service which will enable clients to send requests for rulings and interpretations and receive responses electronically by 2017.
• Upgrade of CRA call centre infrastructure to provide better caller experience and service.
• Recognizing the importance of clarity, the CRA is implementing a plain language action plan to make correspondence easier for businesses, individuals and benefit recipients to understand.

Priority: Compliance

TypeFootnote 1	Description	Strategic outcome
Ongoing	Why this is a priority: Our vision: Making it easy for taxpayers who want to comply and difficult for those who do not.	Taxpayers meet their obligations and Canada's revenue base is protected

Plans for meeting this priority:

• The CRA will continue to implement measures contained in the Federal government's 2013 Economic Action Plan including stronger tools to enforce offshore compliance and tackle international tax evasion and aggressive tax planning.
• A three-year underground economy (UE) strategy, which focuses on working with industry partners, taking concrete action in sectors where the UE is most prevalent, and reducing the social acceptability of participating in the UE.
• Continued piloting of the CRA's new Liaison Officer Initiative, which provides in-person support to small businesses at key points in their establishment and growth.
• A three-year strategic investment to strengthen the compliance enforcement capacity of the Non-Filer, Trust Examination, and GST Delinquent Filer programs.
• Ongoing transformation of the CRA's Criminal Investigations Program to strengthen its ability to leverage the skills of its investigators, work with other law enforcement agencies, and aggressively pursue criminal investigations.
• Implementation of the Registration of Tax Preparers Program for 2016-2017, following extensive national consultation.
• Expanded data analytics to predict when taxpayers may need early intervention, such as reminders, to help them comply.
• Expanding the Community Volunteer Income Tax Program by promoting the program to groups that could benefit, improving the volunteer registration process, and increasing support and training for community organizations and volunteers.

Priority: Integrity and security

TypeFootnote 1	Description	Strategic outcome
Ongoing	Why this is a priority: Our vision: We set the highest standards and make sure we meet those standards.	Taxpayers meet their obligations and Canada's revenue base is protected Eligible families and individuals receive timely and accurate benefit payments

Plans for meeting this priority:

• An anonymous employee reporting line to enable employees to report suspected internal fraud and misuse.
• The Agency-wide Privacy Impact Assessment Plan to enhance the CRA's ability to identify and address privacy impacts each and every time the CRA launches a new program or activity.
• Initiatives to improve system identity and access management, including the new capacity to proactively detect unauthorized employee access to taxpayer information through audit trails.
• An updated agency security plan and information technology security strategy to address emerging threats and ensure the security of information holdings.
• Immediate, concrete actions to enhance the protection of personal information and privacy at the Agency. The CRA is enhancing the protection of personal information held by the Agency through the continued implementation and monitoring of its Privacy Action Plan developed in fiscal year 2013-2014.
• An independent third party assessment of the CRA's Access to Information and Privacy control framework.
• Revised Access to Information Program operational processes to strengthen the protection of taxpayer information, including increased quality assurance activities, heightened protection for data transfers, enhanced protocols for identification of private information, and the provision of additional privacy and security training for its staff.

Priority: Innovation

TypeFootnote 1	Description	Strategic outcome
Ongoing	Why this is a priority: Our vision: We encourage new ideas and move quickly with those that work.	Taxpayers meet their obligations and Canada's revenue base is protected Eligible families and individuals receive timely and accurate benefit payments

Plans for meeting this priority:

• Launching in 2015, the Accelerated Business Solutions Lab will support Agency and government priorities by using innovative approaches—including advanced data analytics and behavioural economics—to undertake projects with a whole-of-Agency scope and strategic importance.
• Launching e‐delivery of T1 notices of assessment in 2015, with the goal of making 80% of correspondence available online within two years.
• Easier registration and simplified access to key information in My Account while maintaining high levels of security for sensitive personal information.
• Launching a mobile app enabling individual taxpayers to view an abbreviated notice of assessment, RRSP deduction limit, and tax-free savings account contribution room in 2015.
• Ongoing collaboration with commercial tax software developers to introduce new features to respond to citizens' service needs, for example expanding the Tax Data Delivery service to individuals using NETFILE-certified software products by February 2016.
• Further advancing multi-year projects to build and renew the CRA's business intelligence platform. This will include the procurement of new technology to improve the CRA's ability to run complex queries and leverage Agency information holdings to perform advanced data analysis.
• Adopting new and innovative analytics approaches in support of the CRA's compliance programs to detect and correct simple errors more quickly, thus enabling the CRA to direct enforcement resources to the highest-risk accounts.
• Continuous development and expansion of online information and increased use of social media tools like RSS feeds and Twitter, to better serve taxpayers who use these forms of communication.
• Ongoing engagement with employees through the award-winning Destination 2020 interactive consultation tool.
• An e-interactions strategy, to be introduced in 2015, which will set the tone and unify the Agency's drive to provide a full suite of digital services. The strategy will rely on innovation as an enabler to achieving success in the ongoing transition to digital service delivery.

Priority: People

TypeFootnote 1	Description	Strategic outcome
Ongoing	Why this is a priority: Our vision: We are a high-performing, diverse workforce embracing new ways of working.	Taxpayers meet their obligations and Canada's revenue base is protected Eligible families and individuals receive timely and accurate benefit payments

Plans for meeting this priority:

• Expanding the use of social media tools in the workplace to enhance collaboration, and improve engagement and "line-of-sight" with CRA priorities, and showcase the work and achievements of Agency employees across the country.
• Updating competencies, performance management, and staffing processes in line with feedback from employees.
• Modernization of human resource service delivery to facilitate effective and efficient people management decisions.
• A comprehensive strategy to recruit technical tax experts at all career stages.

Risk analysis

To support enterprise risk management, the CRA develops an annual corporate risk profile. This profile presents the current landscape of the CRA's enterprise risks, the accountabilities for the management of those risks, and information on how the risks are being addressed.

Managing risks to compliance

Managing risks related to tax compliance remains a key priority for the CRA. Efforts continue to target two main areas, the underground economy and aggressive tax planning, while further exploring the impacts of digital commerce and new forms of economic activity.

The underground economy involves income that is not reported or that is under-reported to avoid paying taxes. Aggressive tax planning is a major threat for tax administrations globally, and Canada is not exempt. Both the underground economy and aggressive tax planning are direct threats to the integrity and fairness of the tax system. To address these risks to Canada's revenue base, the CRA dedicates specific audit resources and engages in compliance research, education, and outreach. The CRA also works with domestic and international partners to co-ordinate initiatives and efforts.

Managing risks to integrity

The CRA remains diligent in protecting taxpayer and benefit recipient information and ensuring controls remain strong in preventing and responding to security incidents. The CRA has many robust controls in place to address this risk. With the increasing prevalence of cyber-attacks, the CRA continues to implement a number of cyber and IT security measures to ensure information remains protected from those on the outside who would want to do it harm, while continuing to strengthen internal privacy protections.

Managing risks to service

Maintaining an agile and responsive IT infrastructure is important for the CRA's continued automation of programs and services. The move towards expanding electronic services remains a key part of the CRA's approach to make it easier for taxpayers to comply and interact with the organization. To that end, with partners at Shared Services Canada, the CRA continues to pursue IT enhancements and to improve its secure online portals. Addressing this risk allows the CRA to meet the evolving service expectations of Canadians, while fully supporting the federal government's whole-of-government approach to the delivery of reliable, secure, and lower-cost government IT infrastructure services.

Key risks

Risk	Risk response strategy	Link to program alignment architecture
Compliance	The risk related to compliance is one of the CRA's top risks because of the impact it could have on the Agency's ability to protect Canada's revenue base. As such, this risk has the potential to threaten the achievement of the CRA's compliance priority for the three-year planning period beginning with fiscal year 2015-2016. To address this area of risk over the next three years, the CRA's approach will include continuing compliance research, taxpayer education, and targeted communications. The Agency will also continue to dedicate specific audit resources to help address this risk. To address the threat of the underground economy (UE), in November 2014, the Minister of National Revenue tabled in Parliament an enhanced strategy—Reducing Participation in the Underground Economy—and met with the newly created Minister's Underground Economy Advisory Committee. These actions will complement the Agency initiatives to encourage compliance and reduce participation in the UE such as using UE specialist teams focusing on specific files and sectors which have an elevated risk of UE activity; addressing electronic suppression of sales through the use of specialized teams, audit techniques, and the application of new penalty provisions; and identifying and auditing taxpayers who are at an increased risk of repeated UE-related non-compliance. The CRA's ability to monitor the electronic transfer of funds, and collect data from domestic sources to effectively counter international tax avoidance and evasion threats were also enhanced by measures introduced in Economic Action Plan 2013 to address the UE and aggressive tax planning (ATP). The CRA will also vigilantly protect the integrity of the revenue base by examining forward-looking risks to tax compliance associated with advances in technology and changing digital environments. More details, including indicators to help measure the effectiveness of strategies, are included in the "Reporting compliance section" of this report.	Reporting compliance
Protection of information	This is one of the CRA's top risks because it may cause taxpayers to question how well the Agency is maintaining the security and integrity of taxpayer information. This risk is directly related to the achievement of the priorities of integrity, security, and compliance for the three-year planning period beginning with fiscal year 2015-2016. An action plan is in place and is focused on strengthening privacy protections through strengthened use of technology, both in relation to internal applications and through the secure services the CRA provides to taxpayers. This includes continuing projects to advance Identify and Access Management through the National Audit Trail System, as well as the Data Security Initiative. More details, including indicators to help measure the effectiveness of strategies, are included in the "Internal services section" of this report.	Internal services
Information technology (IT) sustainability	This is one of the CRA's top risks because of the role that IT plays as a key enabler of the move to e-services, a major aspect of making it easier for taxpayers to comply. This risk has the potential to affect the achievement of the priorities of service, integrity, and security for the three-year planning period beginning with fiscal year 2015-2016. To ensure the continued sustainability of CRA systems, a number of infrastructure enhancements are planned or underway. These include the T1 Systems Redesign Project, the reengineering of the benefits system platform, and the Charities Modernization Project. Over the planning cycle, the CRA will continue to improve its secure online portals called My Account, My Business Account, and Represent a Client to make them easier for taxpayers and their representatives to use, while also preparing for future program growth and advances in technology. More details, including indicators to help measure the effectiveness of strategies, are included throughout this document, with a concentration in the "Internal services section" of this report.	Internal services

Planned expenditures

Budgetary financial information

(dollars)

	2015-2016 Main Estimates	2015-2016 planned spendingFootnote 2	2016-2017 planned spendingFootnote 2	2017-2018 planned spendingFootnote 2
Canada Revenue Agency	3,801,645,731	3,801,645,731	3,759,477,615	3,721,217,890
Taxpayers' Ombudsman	3,198,657	3,198,657	3,191,343	3,192,181
Total	3,804,844,388	3,804,844,388	3,762,668,958	3,724,410,071

Human resources

(full-time equivalents)

	2015-2016	2016-2017	2017-2018
Canada Revenue Agency	38,385	37,876	37,315
Taxpayers' Ombudsman	31	31	31
Total	38,416	37,907	37,346

Budgetary planning summary for strategic outcomes and programs (dollars)

Strategic outcomes, programs, and internal services	2012-2013 expenditures	2013-2014 expenditures	2014-2015 forecast spending	2015-2016 Main estimates	2015-2016 planned spending	2016-2017 planned spending	2017-2018 planned spending
Strategic outcome: Taxpayers meet their obligations and Canada's revenue base is protected
Taxpayer and business assistance	453,280,238	350,801,699	289,691,298	280,181,661	280,181,661	281,567,318	277,088,894
Assessment of returns and payment processing	643,799,856	649,108,155	702,008,721	614,590,330	614,590,330	605,246,609	596,586,054
Reporting compliance	1,170,473,553	1,084,562,230	1,134,056,062	1,045,193,249	1,045,193,249	1,031,278,872	1,032,337,340
Collections and returns compliance	512,217,726	496,787,602	505,312,451	469,453,195	469,453,195	469,262,938	443,295,719
Appeals	192,046,153	190,219,456	226,377,376	179,658,662	179,658,662	177,823,494	175,576,460
Sub-total	2,971,817,526	2,771,479,142	2,857,445,908	2,589,077,097	2,589,077,097	2,565,179,231	2,524,884,467
Strategic outcome: Eligible families and individuals receive timely and accurate benefit payments
Benefit programs	383,719,460	374,414,324	395,447,959	375,217,640	375,217,640	377,704,372	378,000,658
Sub-total	383,719,460	374,414,324	395,447,959	375,217,640	375,217,640	377,704,372	378,000,658
Strategic outcome: Taxpayers and benefit recipients receive an independent and impartial review of their service-related complaints
Taxpayers' Ombudsman Footnote 3	2,622,557	2,524,101	3,338,963	3,198,657	3,198,657	3,191,343	3,192,181
Sub-total	2,622,557	2,524,101	3,338,963	3,198,657	3,198,657	3,191,343	3,192,181
Internal services	960,308,600	914,441,789	1,091,774,957	837,350,994	837,350,994	816,594,012	818,332,765
Total	4,318,468,143	4,062,859,356	4,348,007,787	3,804,844,388	3,804,844,388	3,762,668,958	3,724,410,071

The reduction in forecast/planned spending over the planning period (from $4.348 billion in 2014-2015 to $3.724 billion in 2017-2018) is primarily attributable to:

• certain technical adjustments that are reflected only in 2014-2015 including: a carry-forward from 2013-2014, funding for the one-time transition payment resulting from the Government's move to pay in arrears, and funding for maternity and severance benefits;
• the conclusion of funding received for special projects and the softwood lumber administration costs 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 frameworkⁱⁱⁱ

Strategic outcomes: Taxpayers meet their obligations and Canada's revenue base is protected

Programs	Spending areas	Government of Canada outcomes	2015-2016 Planned spending (dollars)
Taxpayer and business assistance	Government affairs	A transparent, accountable, and responsive federal government	280,181,661
Assessment of returns and payment processing	Government affairs	Well–managed and efficient government operations	614,590,330
Reporting compliance	Government affairs	Well–managed and efficient government operations	1,045,193,249
Collections and returns compliance	Government affairs	Well–managed and efficient government operations	469,453,195
Appeals	Government affairs	A transparent, accountable, and responsive federal government	179,658,662

Strategic outcomes: Eligible families and individuals receive timely and accurate benefit payments

Programs	Spending areas	Government of Canada outcomes	2015-2016 Planned spending (dollars)
Benefit programs	Economic affairs	Income security and employment for Canadians	375,217,640

Strategic outcomes: Taxpayers and benefit recipients receive an independent and impartial review of their service-related complaints

Programs	Spending areas	Government of Canada outcomes	2015-2016 Planned spending (dollars)
Taxpayers' Ombudsman	Taxpayers' Ombudsman	Income A transparent, accountable, and responsive federal government	3,198,657

Total spending by spending area (dollars)

Spending area	Total planned spending
Economic affairs	375,217,640
Social affairs	-
International affairs	-
Government affairs	2,592,275,754

CRA spending trend

CRA spending trend graph

	2012-2013 actuals	2013-2014 actuals	2014-2015 forecast spending	2015-2016 planned spending	2016-2017 planned spending	2017-2018 planned spending
Statutory authorities	1,007,281,205	902,057,364	831,440,723	825,419,615	820,363,267	811,780,951
Voted	3,311,186,938	3,160,801,992	3,516,567,064	2,979,424,773	2,942,305,691	2,912,629,120
Total	4,318,468,143	4,062,859,356	4,348,007,787	3,804,844,388	3,762,668,958	3,724,410,071

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, 2015. In fiscal year 2015-2016 planned spending is identical to expenditure levels presented in the Main Estimates.

The planned spending trend figure 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 Works and Government Services Canada for accommodations and real property services; disbursements under the Softwood Lumber Agreement; responsibilities related to the harmonization of sales tax in Ontario and British Columbia; the children's special allowance payments, as well as the implementation of initiatives to improve efficiency.

Total spending for fiscal years 2012-2013 to 2014-2015, also includes certain technical adjustments such as the CRA's carry forward adjustments from the previous year and funding for maternity and severance benefits. The 2014-2015 fiscal year further includes funding for the one-time transition payment resulting from the Government's move to pay in arrears.

Over the period 2012-2013 to 2017-2018, 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 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 planned decrease in funding for: the implementation of the Harmonized Sales Tax for Ontario and British Columbia, and the Affordable Living Tax Credit for Nova Scotia; and the administration of the Softwood Lumber Agreement;
• other miscellaneous reductions such as: the transfer to Public Works and Government Services Canada for accommodation and real property services; adjustment to funding previously transferred to Shared Services Canada; the transfer to Canada School of Public Service.

Estimates by Vote

For information on the CRA's organizational appropriations, consult the 2015-2016 Main Estimates^iv on the Treasury Board of Canada Secretariat website.

Footnotes

Footnote 1

Type is defined as follows:
- previously committed to: committed to in the first or second fiscal year prior to the subject year of the report;
- ongoing: committed to at least three fiscal years prior to the subject year of the report; and
- new: newly committed to in the reporting year of the RPP or DPR.

Return to footnote 1 referrer

Footnote 2

Planned spending refers to those amounts for which a Treasury Board submission approval has been received by no later than February 1, 2015. This cut–off date differs from the Main Estimates process. While in any given year planned spending may include amounts incremental to planned expenditure levels presented in the Main Estimates, this year it does not.

Return to footnote 2 referrer

Footnote 3

Since the Taxpayers' Ombudsman operates at arm's-length from the CRA, this Report on Plans and Priorities does not reflect the activities of that office.

Return to footnote 3referrer

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Date modified:

2015-03-31