Highlights — Tax Services

Innovating for the Future

With the Tax Services business line, we are continuing to make ongoing advancements in the way we operate, applying new systems and technologies to improve the services we deliver to Canadians.

Future Directions is an important element of our business transformation agenda. Through consultations with our clients — individuals, small enterprises, and large businesses — we have developed a coherent vision for the future that embraces seven key areas:

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Under Future Directions, we will expand our services to improve client satisfaction, particularly by offering a wider range of electronic self-service options, making it easier and more convenient to comply. Some of our initiatives for the 2003-2004 to 2005-2006 planning period include:

• launching a "My Account" Web page that will eventually allow individuals to make their own adjustments on-line;
  
  
• creating an on-line portal that will allow tax professionals to manage their clients' accounts on-line; and
  
  
• increasing electronic services to provide the capacity for real-time interaction with large businesses.

Managing Compliance

The outcome we seek in Tax Services, the CCRA's largest business line, is that Canadians pay their fair share of taxes and that the tax base is protected.

Achieving this outcome is a complex undertaking, considering the nature and volume of information we are required to handle.

Key Volumetrics

This involves promoting voluntary participation in the tax system, while containing non-compliance. Our priorities are:

• Continuing to offer high-quality services: increasing accessibility rates and introducing a wider range of self serve offerings.
  
  
• Processing returns accurately, efficiently, and in a timely way: introducing more electronic filing options — such as NETFILE and TELEFILE — to accelerate processing.
  
  
• Effectively targeting compliance issues: increasing audit coverage rates, identifying high-risk areas (e.g., the underground economy), and communicating our approach for improving compliance and the results we are achieving.
  
  
• Ensuring that the majority of Canadians continue to participate in the tax system: improving the timeliness of our collection activities, and promoting greater awareness among Canadians of their entitlements.

The following table identifies the anticipated results and success criteria that have been developed, and which will guide the Tax Services business line over the planning period.

Expected outcome —
Canadians pay their fair share of taxes
and the tax base is protected

Anticipated Results	Success Criteria
Majority of Canadians and businesses participate in the tax system	Strong levels of filing, remittance, reporting, and registration compliance, generally consistent with the performance of past years
Taxpayers receive timely, accessible, reliable, and fair service that is responsive to their needs	Meet or exceed our service standards and internal performance targets. For example: Process 90% of fairness requests related to accounts receivable and trust account programs within 4-6 weeks Provide technical interpretations to taxpayers within 90 days Process 80% of applications to registered pension plans within the published timeframes of 60 days for deemed registrations and 180 days for complete review Process paper T1 returns within 4-6 weeks of receipt and electronic returns (EFILE, NETFILE, TELEFILE) within 2 weeks of receipt Process GST/HST returns within 21 days of receipt Process 75% of T2 corporation returns within 50 calendar days and 90% within 90 calendar days Develop service standards for telephone enquiries, adapted from existing internal performance targets, by 2003-2004 Overall client satisfaction rating from our annual survey continues to meet or exceed our 71% benchmark result for 2000-2001 Continued effectiveness in communicating and implementing legislative changes within required timeframes Increased take-up of alternative electronic information services and reduced caller volumes Implementation of a systematic nationwide fairness monitoring program by 2005-2006 Successful implementation of the Scientific Research and Experimental Development (SR&ED) Strategic Business Plan
Processing of returns is accurate, timely, and efficient	Meet or exceed service standards and internal performance targets, for example: Process 98% of on-time T1 returns by mid-June Process paper T1 returns within 4-6 weeks of receipt and electronic returns (EFILE, NETFILE, TELEFILE) within 2 weeks of receipt Process 75% of current-year T2 corporation income tax returns within 50 days and a further 15% within 90 days Process 100% of all GST/HST returns within 21 days of receipt Process 95% of T3 trust returns within 4 months Process T4 returns filed via the Internet within one business day Process SR&ED tax credit claims within established service standard timeframes 90% of the time
Tax debt is within targeted levels	Reduce the inventory of older accounts (greater than 5 years) relative to prior years Meet or exceed cash collections commitments to the Government of Canada of $8.4 billion for 2003-2004, increasing to $8.6 billion by 2005-2006 Close the gap between the dollar value of production (cash collections, write-offs, and other adjustments) and the intake of new debt Stabilize or prevent further deterioration in the ratio of outstanding receivables to gross revenues As part of a multi-faceted framework for managing accounts receivable: by 2003-2004, implement a National T1 Pool pilot project by 2004-2005, evaluate year 1 of the pilot project
Compliance behaviour is understood with a view to minimizing areas of non-compliance	Implementation of the Compliance Measurement Framework by 2004-2005 Development and implementation of an e-commerce compliance strategy by 2004-2005
Allocation of resources is guided by risk	Continued effective use of information matching programs to identify discrepancies between amounts reported on tax returns and third-party information reports Results from validation programs continue to show much higher adjustment rates and average dollar amounts compared to random selections Results from audit and enforcement programs demonstrate effectiveness in flagging risky returns Investigations continue to detect proceeds of crime and make referrals, as required, for criminal prosecution Meet or exceed 2000-2001 benchmark for number of returns and registrations secured through the non-filer program Meet or exceed anticipated fiscal impact levels
Actively seek legislative changes as required to enhance simplification and minimize non-compliance	By 2005-2006, implement a formal mechanism for tracking and reporting on legislative issues
The right compliance programs are used, are sufficiently resourced, and are effectively delivered	Meet or exceed anticipated fiscal impact levels, for example: Provide for increased revenue of: $143 million in 2003-2004, $188.7 million in 2004-2005 and 2005-2006 through the GST/HST delinquent filer program Increase revenue by $33.7 million in 2003-2004, $45.8 million in 2004-2005 and 2005-2006 through Employer Compliance Audit Program Increase review and examination of Employer Withholding accounts to 5% of total Employer Registrants Base Continued participation in audit protocol agreements By 2005-2006, meet anticipated audit coverage levels (to be revised as necessary to account for increased population growth and adjustments in funding): Large corporations — 60% for large files and 20% for basic files Small and Medium business — 1.16% for unincorporated businesses and 1.26% for corporate files GST/HST files — 1.38%
Knowledgeable and skilled workforce is in the right place at the right time	Meet resource utilization targets in line with approved funding Training programs are in place by 2005 to meet the changing skills and knowledge required to deliver on Future Directions initiatives

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Date modified:

2003-07-03