Audited Financial Statements - Administered Activities

Notes to the Financial Statements - Administered Activities

1. Authority and purpose

The Canada Customs and Revenue Agency (the “Agency”) was established, effective November 1, 1999, under the Canada Customs and Revenue Agency Act (CCRA Act) as an agent of Her Majesty of Canada. It is a departmental corporation named in Schedule II of the Financial Administration Act and reports to Parliament through the Minister of National Revenue.

The Agency's mandate is to provide support, advice and services when:

(a) supporting the administration and enforcement of the program legislation;

(b) implementing agreements between the Government of Canada or the Agency and the government of a province or other public body performing a function of government in Canada to carry out an activity or administer a tax or program;

(c) implementing agreements or arrangements between the Agency and departments or agencies of the Government of Canada to carry out an activity or administer a program; and

(d) implementing agreements between the Government of Canada and Aboriginal governments to administer a tax.

The Agency collects revenues, including income and sales taxes, Canada Pension Plan contributions, and Employment Insurance premiums, administers tax legislation, delivers a number of social benefit programs to Canadians for the federal government, as well as for provincial, territorial, and Aboriginal governments and collects amounts for other groups or organizations. It is responsible for the administration and enforcement of the following acts or parts of acts: the Air Travelers Security Charge Act, the Canada Customs and Revenue Agency Act, the Children's Special Allowances Act, Part V.1 of the Customs Act, the Excise Act, the Excise Tax Act (including the Good and Services Tax (GST) and the Harmonized Sales Tax (HST) except for GST/HST on imported goods), the Excise Act, 2001, the Income Tax Act, and others.

Originally, the mandate of the Agency was to support the administration and enforcement of tax, customs, and trade legislation as well as other related legislation. As a result of the creation of the Canada Border Services Agency (CBSA) the Agency's mandate regarding the administration of customs legislation is now limited to the collection functions under Part V.1 of the Customs Act. Accordingly, as of March 31, 2004 all revenues, expenses, assets, and liabilities relating to customs operations are reported by the CBSA (see Note 3 for more details).

In the province of Quebec, the Ministère du Revenu du Québec (MRQ) acts as an agent of the Agency for the administration and enforcement of the GST. The Agency monitors cash transfers made by the MRQ, reports the GST revenues administered on its behalf, authorizes refunds, and transfers funds out of the Consolidated Revenue Fund to the MRQ for the issuing of refunds.

Date modified:

2005-10-26