Canada Revenue Agency Quarterly Financial Report For the quarter ended June 30, 2025

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Canada Revenue Agency Quarterly Financial Report For the quarter ended June 30, 2025

© His Majesty the King in Right of Canada, represented by the Minister of Finance and National Revenue, 2025
Catalogue No. Rv2-4E-PDF
ISSN 2819-4543


On this page

Statement outlining results, risks and significant changes in operations, personnel and program

Introduction

This quarterly financial report has been prepared by management as required by section 65.1 of the Financial Administration Act in the form and manner prescribed by the Treasury Board. This report should be read in conjunction with the Main Estimates.

Further details on the Canada Revenue Agency’s (CRA) program activities can be found in the Departmental Plan.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the CRA's spending authorities granted by Parliament and those used by the CRA consistent with the Main Estimates for the 2025-2026 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before moneys can be spent by the government. Approvals are given in the form of annually approved limits through appropriation acts or through legislation of statutory spending authority for specific purposes.

The CRA uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

This quarterly report has not been subject to an external audit or review.

Highlights of the fiscal year-to-date (YTD) results

Figure 1 below reflects the CRA's annual net authorities available for use, as well as the CRA’s YTD expenditures as at June 30, 2025.

The CRA’s annual net authorities have decreased significantly, primarily in statutory authorities, due to the removal of the federal fuel charge effective April 1, 2025. YTD expenditures have also decreased, due to both statutory payments and operating costs. Further analysis of authorities and expenditures is presented below.

The Agency’s annual authorities available for use as of June 30 and cumulative expenditures for 2024-2025 and 2025-2026

Figure 1 – details

Figure 1: Annual net authorities against YTD expenditures as at June 30, 2025
Year Authority/Expenditure Total Authorities
Excluding Statutory Items		 Statutory Total
2024-2025 Authorities $5,217 million $12,925 million $18,142 million
Expenditures $1,424 million $3,058 million $4,482 million
2025-2026 Authorities $5,103 million $5,541 million $10,644 million
Expenditures $1,239 million $2,821 million $4,060 million

Note: Refer to the Statement of Authorities, at the end of the report, for details of the specific items included in the statutory authorities.

Year-over-year (YOY) analysis of authorities

This report reflects the results for the current fiscal year in relation to the Main Estimates and authorities available for use from the prior fiscal year. The current year authorities do not include the recently approved 2024 Fall Economic Statement funding, which will be sought through Supplementary Estimates. As shown in the summarized table below, the CRA’s total Budgetary Authorities have decreased by $7,498M ($7.5B) since the first quarter of 2024-2025, from $18,142M ($18.1B) in 2024-2025, to $10,644M ($10.6B) in 2025-2026.

Summarized Statement of Authorities (unaudited)

(in millions of dollars) Total available for
use for the year ending March 31, 2026		 Total available for
use for the year ending March 31, 2025		 Variance in budgetary authorities

Budgetary Statutory Authorities

$5,541M

$12,925M

($7,384M)

The decrease in Budgetary Statutory Authorities is mostly due to the removal of the federal fuel charge effective April 1, 2025; therefore, only one final fuel charge payment has been issued ($7,460M)

Gross Vote 1 – Operating Authorities

$5,457M

$5,556M

($99M)

The decrease in Gross Vote 1 Operating Authorities is primarily related to the following:

  • Decrease in authorities available for use from the prior fiscal year ($309M)
  • Decrease due to the ramp up of Refocusing Government Spending reductions announced in the 2023 federal budget ($30M)
  • Increase related to the 2022 federal budget measure to continue work on fighting tax evasion and strengthening tax compliance, $10M
  • Increase related to current year increments of the latest collective agreements, primarily for the Professional Institute of the Public Service of Canada and Public Service Alliance of Canada groups, $60M
  • Increase related to funding announced in the 2024 federal budget, primarily to maintain quality contact centre services and for the retroactive payments for the Canada Carbon Rebate (CCR) for small businesses, $170M

Vote 5 – Capital Authorities

$135M

$143M

($8M)

The decrease in Vote 5 Capital Authorities is related to the following:

  • Decrease in capital authorities due to a decrease in the vote realignment from the operating vote ($20M)
  • Decrease in authorities related to the 2021 federal budget measure; Goods and Services Tax/Harmonized Sales Tax (GST/HST) Agile Risk Assessment ($2M)
  • Decrease in authorities related to a previous federal budget measure; Protecting Taxpayer Information ($1M)
  • Increase in authorities available for use from the prior year, $15M

Revenue Credited to the Vote (RCV)

($489M)

($482M)

($7M)

The increase in RCV is primarily related to the current year increments associated with the latest collective agreements and the Canada Pension Plan Enhancement

Total Budgetary Authorities

$10,644M ($10.6B)

$18,142M ($18.1B)

($7,498M) ($7.5B)

YOY analysis of expenditures

Expenditures by vote

The first quarter expenditures as at June 30, 2025 have decreased by $422M, from $4,482M ($4.5B) in 2024-2025 to $4,060M ($4.1B) in 2025-2026, as displayed in the Statement of Authorities. The material components of this YOY change are explained below.

Summarized Statement of Authorities (unaudited)expenditures by votes

(in millions of dollars) YTD expenditures at June 30, 2025 YTD expenditures at June 30, 2024 Variance in YTD expenditures

Budgetary Statutory Authorities

$2,821M

$3,058M

($237M)

The majority of the decrease in Budgetary Statutory Authorities is primarily related to reductions in fuel charge payments issued, as a result of the removal of the federal fuel charge effective April 1, 2025 ($260M)

Net Vote 1 – Operating Expenditures

$1,227M

$1,409M

($182M)

The decrease in Net Vote 1 Operating Expenditures is primarily related to the following:

Salary

  • Decrease in determinate and student salaries, resulting from mitigation measures implemented in the prior and current year to reduce the CRA’s operating expenditures ($83M)
  • Decrease in expenditures related to overtime worked ($5M)

Operating and maintenance

  • Decrease in computer software expenditures related to Microsoft 365, which is now being paid via an ongoing budget transfer to Shared Service Canada ($13M)
  • Decrease in travel expenditures due to efforts to reduce all non-discretionary amounts ($3M)

Variances related specifically to the Professional and special services standard object are detailed below on the next page.

Vote 5 – Capital Expenditures

$12M

$15M

($3M)

The decrease in Vote 5 Capital Expenditures is primarily related to the completion of major project investments.

Total Budgetary Authorities

$4,060M ($4.1B)

$4,482M ($4.5B)

($422M)

Expenditures by standard object

The material variances will be explained in the table below. All of the standard objects have realized decreases in YTD spending as of Q1. Further details on the most significant standard objects are below.

Summarized Departmental Budgetary Expenditures by Standard Object (unaudited)

(in millions of dollars) YTD expenditures at June 30, 2025 YTD expenditures at June 30, 2024 Variance in YTD expenditures

Transfer Payments

$2,642M

$2,896M

($254M)

The decrease in Transfer payments, is primarily related to reductions in distribution of fuel charge payments issued, as a result of the removal of the federal fuel charge effective April 1, 2025 ($260M)

Personnel

$1,322M

$1,394M

($72M)

The variance explanation noted in the Net Vote 1 salary section is also applicable to the Personnel standard object, in addition to variances in other items, including the Employee Benefit Plan.

Other standard objects

$217M

$315M

($98M)

Of the $98M decrease, $68M is related to the Professional and special services standard object. The following items relate to this variance specifically:

  • Decrease due to the timing of billing received from the Department of Justice ($62M)
  • Decrease in the transfer to Revenu Québec for the administration of the GST due to the timing and amount of the billing, ($7M)
  • Decrease in IT consultants due to an active effort to meet the government’s spending reduction commitments ($4M)
  • Decrease in language consultants, course fees, and tuition costs ($3M)

$14M of the decrease relates to the Acquisition of machinery and equipment standard object primarily relates to reduced computer software expenses related to Microsoft 365, which is now being paid via an ongoing budget transfer to Shared Services Canada.

$6M of the decrease relates to the Rentals standard object, which is a result of a reduction in the CRA’s real property footprint, provided by Public Services and Procurement Canada.

Revenue Credited to the Vote

($121M)

($123M)

$2M

Total Budgetary Authorities

$4,060M ($4.1B)

$4,482M ($4.5B)

($422M)

Note: The Transfer payments standard object includes the Children’s Special Allowance payments, CCR payments, Distribution of Fuel Charges – Provinces and Territories, Distribution of Fuel Charges – Farming Businesses, Distribution of Fuel Charges – Small Businesses, Energy Cost Benefit payments and payments to non-profit organizations.

Risks and uncertainties

The CRA is a world-class tax and benefits administration that is trusted, fair, and helpful by putting people first. As such, the CRA continually monitors its internal and external environments for events that could affect whether it achieves its strategic priorities and objectives. The Board of Management monitors, and senior management receives, quarterly updates on the CRA’s Corporate Risk Profile (CRP), which involves regular monitoring of the entire risk portfolio. Given the shifting risk and financial environments, the Financial Management risk has been elevated to an enterprise-level risk. The CRA’s key risks and mitigation strategies are outlined in the 2025-2026 Departmental Plan.

The CRA recognizes that all of the key risks identified in the Departmental Plan could have financial impacts should they materialize. The key risks and associated mitigation strategies outlined in the Departmental Plan relate to the CRA’s 2025-2026 strategic priorities, which include the following:

  • Deliver high quality services
  • Ensure the fairness of the tax system
  • Transform digitally
  • Nurture a high-performing and diverse workforce in a modern, flexible, inclusive, and accessible workplace

Significant changes in relation to operations, personnel, and programs

This fiscal year is expected to be challenging, as the CRA navigates a period of increased demands and fiscal constraint. Spending reductions and the emphasis on fiscal prudence continue to be central themes this year. The winding down of funding associated with post-pandemic support, the ending of select funding and the government-wide savings initiatives have contributed to reducing the CRA’s authorities.

Moreover, external factors such as the growth of the Canadian population and increased security risks are impacting program costs. These changes, which may need to be actioned on a priority basis, would require timely sources of funds since the CRA’s financial flexibility has been eroded.

The CRA continues to contribute to the government’s priority of Responsible Government Spending by reducing discretionary spending on travel, professional services, and other operating expenditures. The CRA has been proactive in advancing its financial plans, while ensuring the long-term financial viability of the Agency. These plans have necessitated the commencement of workforce adjustment actions as well as the ending of term contracts earlier than anticipated.

The CRA’s goal, throughout the financial planning process, has been to minimize the impact on employees, core business, and service to Canadians, while ensuring the ability to operate within its allotted authorities is assured.

Approval by Senior Officials

Approved by:

[original signed by]

________________________

Bob Hamilton, Commissioner

[original signed by]

_____________________________

Hugo Pagé, Chief Financial Officer

Ottawa, Canada

Date:

Statement of Authorities (unaudited) – Fiscal year 2025-2026
(in thousands of dollars) Total available for use for the year ending March 31, 2026table 4 note 1 Used during the quarter ended
June 30, 2025		 Year-to-date used at quarter-end

Vote 1 - Operating expenditures

Gross Operating expenditures

$5,457,113

$1,348,497

$1,348,497

Revenues netted against expenditures

$(489,859)

$(121,425)

$(121,425)

Net Vote 1 - Operating expenditures

$4,967,254

$1,227,072

$1,227,072

Vote 5 - Capital expenditures

$135,712

$12,146

$12,146

Budgetary Statutory Authorities

Contributions to employee benefit plans

$661,636

$165,409

$165,409

Children's Special Allowance payments (Children's Special Allowances Act)

$423,000

$108,848

$108,848

Canada Carbon Rebate payments

$3,522,000

$2,319,356

$2,319,356

Spending of revenues received through the conduct of its operations pursuant to section 60 of the Canada Revenue Agency Act

$293,913

$12,845

$12,845

Distribution of Fuel Charges - Provinces and Territories

$17,000

$20,823

$20,823

Distribution of Fuel Charges - Farming Businesses

-

$94,350

$94,350

Distribution of Fuel Charges - Small and Medium-sized business

$623,000

$99,203

$99,203

Minister's salary and motor car allowance

$102

$15

$15

Court awards - Tax Court of Canada

-

$78

$78

Spending proceeds from the disposal of surplus Crown Assets

-

$12

$12

Energy Cost Benefit

-

$(1)

$(1)

Total Budgetary Statutory Authorities

$5,540,651

$2,820,938

$2,820,938

Total Budgetary Authorities

$10,643,617

$4,060,156

$4,060,156

Note: Statutory authorithies will be adjusted at year-end to reflect actual expenditures. Any incongruences between statutory authorities and spending will be resolved at year-end.

This financial table compares the Agency’s total available authorities available as of March 31, expenditures used during the quarter and year-to-date expenditures for fiscal years 2024-2025 and 2025-2026 by voted authority. This table uses parentheses to show negative numbers.

Statement of Authorities (unaudited) – Fiscal year 2024-2025
(in thousands of dollars) Total available for use for the year ending March 31, 2025table 4 note 1 Used during the quarter ended
June 30, 2024		 Year-to-date used at quarter-end

Vote 1 - Operating expenditures

Gross Operating expenditures

$5,556,071

$1,532,228

$1,532,228

Revenues netted against expenditures

$(482,414)

$(122,990)

$(122,990)

Net Vote 1 - Operating expenditures

$5,073,657

$1,409,238

$1,409,238

Vote 5 - Capital expenditures

$143,423

$14,650

$14,650

Budgetary Statutory Authorities

Contributions to employee benefit plans

$568,546

$142,137

$142,137

Children's Special Allowance payments (Children's Special Allowances Act)

$396,000

$102,187

$102,187

Canada Carbon Rebate payments

$11,358,000

$2,700,767

$2,700,767

Spending of revenues received through the conduct of its operations pursuant to section 60 of the Canada Revenue Agency Act

$338,773

$19,519

$19,519

Distribution of Fuel Charges - Provinces and Territories

$60,000

$7,649

$7,649

Distribution of Fuel Charges - Farming Businesses

$203,500

$85,567

$85,567

Minister's salary and motor car allowance

$99

$25

$25

Court awards - Tax Court of Canada

-

$166

$166

Spending proceeds from the disposal of surplus Crown Assets

-

$19

$19

Energy Cost Benefit

-

$(1)

$(1)

Total Budgetary Statutory Authorities

$12,924,918

$3,058,035

$3,058,035

Total Budgetary Authorities

$18,141,998

$4,481,923

$4,481,923

This financial table compares the Agency’s total available authorities available as of June 30, expenditures used during the quarter and year-to-date expenditures for fiscal years 2023-2024 and 2024-2025 by voted authority. This table uses parentheses to show negative numbers.

Departmental Budgetary Expenditures by Standard Object (unaudited)
Fiscal year 2025-2026
(in thousands of dollars) Planned expenditures for the year ending March 31, 2026 Expended during the quarter ended June 30, 2025 Year-to-date used at quarter-end

Expenditures:

Personnel

$5,186,616

$1,322,070

$1,322,070

Transportation and communications

$183,684

$32,817

$32,817

Information

$33,586

$2,163

$2,163

Professional and special services

$740,753

$103,557

$103,557

Rentals

$278,385

$62,809

$62,809

Purchased repair and maintenance

$47,076

$7,876

$7,876

Utilities, materials, and supplies

$32,024

$2,173

$2,173

Acquisition of machinery and equipment

$41,638

$3,857

$3,857

Transfer payments

$4,589,454

$2,642,579

$2,642,579

Other subsidies and payments

$260

$1,680

$1,680

Total Gross Budgetary Expenditures

$11,133,476

$4,181,581

$4,181,581

Less: Revenues netted against expenditures

$489,859

$121,425

$121,425

Total Net Budgetary Expenditures

$10,643,617

$4,060,156

$4,060,156

This financial table compares the Agency’s planned expenditures available as of June 30, expenditures used during the quarter and year-to-date expenditures for fiscal years 2023-2024 and 2024-2025 by standard object. This table uses parentheses to show negative numbers.

Departmental Budgetary Expenditures by Standard Object (unaudited)
Fiscal year 2024-2025
(in thousands of dollars) Planned expenditures for the year ending March 31, 2025 Expended during the quarter ended June 30, 2024 Year-to-date used at quarter-end

Expenditures:

Personnel

$4,931,715

$1,394,216

$1,394,216

Transportation and communications

$240,789

$34,478

$34,478

Information

$43,246

$5,835

$5,835

Professional and special services

$904,898

$171,231

$171,231

Rentals

$309,149

$68,853

$68,853

Purchased repair and maintenance

$69,016

$10,891

$10,891

Utilities, materials, and supplies

$42,890

$3,375

$3,375

Acquisition of machinery and equipment

$58,809

$17,498

$17,498

Transfer payments

$12,023,544

$2,896,170

$2,896,170

Other subsidies and payments

$356

$2,366

$2,366

Total Gross Budgetary Expenditures

$18,624,412

$4,604,913

$4,604,913

Less: Revenues netted against expenditures

$482,414

$122,990

$122,990

Total Net Budgetary Expenditures

$18,141,998

$4,481,923

$4,481,923

This financial table compares the Agency’s planned expenditures available as of June 30, expenditures used during the quarter and year-to-date expenditures for fiscal years 2023-2024 and 2024-2025 by standard object. This table uses parentheses to show negative numbers.


Footnote 1

Includes only authorities available for use and granted by Parliament at quarter-end.

Return to footnote1 referrer


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Date modified:
2025-08-28