Accrual accounting

The method of recording transactions by which revenues and expenses are reflected in the determination of results for the period in which they are considered to have been earned and incurred, whether or not such transactions have been settled finally by the receipt or payment of cash or its equivalent.

Activity based costing

A methodology that measures the cost and performance of activities, resources, and cost objects, assigns resources to activities and activities to cost objects based on their use, and recognizes the causal relationships of cost drivers to activities.

Adjudications

The mandate of the Adjudications Division is to review objections to enforcement actions taken under the Customs Act and to render decisions to those objections in a fair, impartial, transparent, and timely manner. This program is not delivered regionally or at the border—the Adjudications Division in Headquarters conducts the administrative redress process. When an objection is filed under the Excise Act, Adjudication's role is limited to advising individuals of the proper procedure to appeal in court and providing direction to the Department of Justice during this process.

Anticipated Results

Clear and concrete statement of results to be achieved within the time frame of parliamentary and departmental planning and reporting (1-3 years), against which actual results can be compared.

Assisted Compliance

Directed assistance is provided to help clients to accurately and completely fulfil their obligations and receive their entitlements under tax, trade and border laws. Our range of assisted compliance activities includes: information reporting; review and verification programs; audits and examinations relating to tax, trade or border regulations, policies and procedures.

Balanced Scorecard (BSC)

A strategic measurement-based management system, originated by Robert Kaplan and David Norton, that assists organizations in achieving a clear alignment between business activities and strategic goals, and provides a management tool to measure, monitor and manage performance.

Call accessibility

The percentage of telephone call attempts that reach an agent or get into a queue.

Caller accessibility

The percentage of individuals who reach an agent or get into a queue.

Cancellation

The reversal of a penalty or interest that has already been assessed.

Contingency payment

A payment made in good faith to a benefit client where required tax returns are not received and/or processed. This payment replaces the first monthly payment (July) in the annual cycle, and depending on when/if the return is filed, will either be treated as an overpayment, or will be adjusted with up-to-date income information in the second month of the payment cycle.

Corporate Business Plan

Within approved expenditure levels, the Corporate Business Plan sets out an organization's major challenges, directions and objectives for the planning period (that is, the Estimates year plus two future years as a minimum); the strategies to achieve those objectives; and the performance measures to be used to measure progress and to meet its performance goals.

Cash accounting

The method of recording transactions by which revenues and expenses are reflected in the determination of results for the period in which the related cash receipts or disbursements occur.

Data mart

Similar to a data warehouse, but focused on, and limited to, a smaller group or subset of data.

Data warehouse

A specialized database that draws data from applicable systems (normally operational systems) and presents it to users in a manner that facilitates search, review, and analysis.

Disputes

General term to designate disputes, objections, and appeals to the Minister.

Dispute resolution process

Clients who believe they have been treated unfairly are entitled to file a dispute. The Appeals business line reviews the dispute, discusses the issues with the client, and ultimately notifies the client of its decision. Clients who are not satisfied with the result of the review may appeal to the courts—or for Trade Administration issues, to the Canadian International Trade Tribunal (CITT).

Effectiveness

The extent to which an organization or program is meeting its planned results.

Efficiency

The extent to which an organization or program is producing its planned outputs in relation to the expenditure of resources.

Eligible

Meets the requirements of the legislation in order to receive a benefit.

Employment Insurance Family Supplement

Family based supplementary payments issued by Human Resources Development Canada using CCTB eligibility and entitlement information provided by CCRA on a monthly basis.

Enforcement

We maintain an enforcement capacity to take corrective action, where appropriate, to address cases of wilful or unintentional non-compliance. We carry out investigations to ensure compliance with income tax, GST, and customs duties. At the international level, we undertake a variety of enforcement activities to address non-compliance and verify that Canada's tax treaties are being properly applied.

Entitled

Qualifies for a specific payment for a specific period.

Entitlement

The amount due to an entitled person for a specific period.

Expected outcome

The expected result, effect or consequence that occurs from carrying out a program or activity—a long-term, ultimate measure of success or strategic effectiveness.

This report includes performance information on the expected outcomes for five business lines:

Tax Services:

Canadians pay their fair share of taxes and the tax base is protected – Our tax system is based on self-assessment and voluntary compliance. Canadians are more likely to participate in the tax system and pay the taxes they owe if we provide timely and accessible services to help them do so. People find it easier to participate when the system is accessible and when service is timely and fair. The accurate, timely, and efficient processing of returns encourages participation and shortens the time between filing and the receipt of taxes owing or distribution of refunds.

Although quality service and the efficient processing of returns help to promote compliance, there will always be some instances where individuals and businesses either unintentionally or intentionally fail to be fully compliant. A knowledgeable, skilled, and appropriately staffed work force that understands compliance behaviour and identifies areas of non-compliance is key to protecting the tax base, which the government relies upon to fund its social and economic policy objectives. This, along with a sound risk management approach for guiding audit, review, and debt collection activities helps ensure that any leakage in the tax base (non-compliance) is kept at a relatively low level, thereby contributing to greater equity and fairness in the administration of tax laws.

Benefit Programs and Other Services:

Canadians receive their rightful share of entitlements – It is critical that we provide Canadians with the right tools and information so that they can provide us with the information we need to register them on the appropriate benefit rolls and ensure they receive accurate and timely benefits payments. Canadians are likely to access these programs if they are informed about them and have a clear understanding of what they need to do to receive benefits. We also undertake review activities to verify eligibility and entitlements.

Provinces, territories, and other government departments rely on the CCRA as a key service provider – Our legislative flexibilities as an agency and the adaptability of our systems enable us to provide Canadians with a greater range of services on behalf of provinces, territories, and other government departments to reduce overall cost to taxpayers and reduce duplication.

Customs Services:

Canadians' health, safety, security, and business interests are protected, and Canada's economic growth is supported, through responsible border and trade management – While it has assumed greater importance over the past year, security has always been a priority for us in carrying out our work to achieve our expected outcome. Finding the right balance between security and economic objectives is a continuous process that must respond to changes in the environment. We therefore aim to have in place the right mix of activities, within the constraints of our funding, to ensure responsible border and trade management, guided by sound risk assessment and partnerships. This mix, along with the right tools and a strong service component to inform businesses and individuals of their obligations under the laws, is intended to encourage compliance with Canadian trade and border legislation. We also work to provide a level-playing field for traders by promoting a consistent and predictable customs environment as well as protecting domestic producers from injurious trade practices. Finally, to protect our borders and facilitate trade, we need to deliver our programs through a skilled and knowledgeable work force of sufficient size to meet workload volumes.

Appeals:

Canadians receive an impartial and timely review of contested decisions through our redress system – Our aim is to provide clients with a fair dispute resolution process. An impartial and timely process fosters trust in the integrity of our tax and customs systems, which helps promote voluntary compliance with these systems.

To earn and keep the trust of our clients, we must have a redress process that is fair and that is also seen to be fair. A basic aspect of fairness is ensuring clients are informed of their rights and how to exercise them. Making sure the process is timely, accessible, and consistent also contributes to its actual and perceived fairness.

Corporate Management and Direction:

Performance of our business services and operations is maximized through modern and innovative management approaches – An effective governance and management regime positions the CCRA to achieve substantial gains in client-focused service delivery in line with our unique agenda. To achieve these gains, we must communicate the strategic agenda, empower our employees to deliver it, and be transparent about our results. As a public organization, we also owe it to Canadians to ensure that our financial management information systems and practices are sound and respect their rights. Together, these elements provide the platform for maximizing the performance potential of our business lines.

Now that we are an agency, Canadians expect us to realize greater advances than we could as a department. This means leveraging our new found flexibility as a separate employer and custodian of our financial management policies, among others, to develop customized administration in support of better, faster, more affordable service to Canadians. We continue to put in place the tools and systems we need to achieve significant changes: human resources reform and renewal, administrative reform and renewal, and transparent management for results. At the same time, we are striving for further enhancements in our core programs, where appropriate. Our platform for change is found in the CCRA's Summary of the Corporate Business Plan.

Facilitation

Assistance provided to clients to help them understand their entitlements and obligations and facilitate voluntary compliance with tax, trade and border laws. We offer a wide range of client-focused services such as: counter service; forms and publications; telephone and electronic assistance; rulings and interpretations; and, information seminars.

Facilities Management

The ongoing day-to-day management of the Agency's Real Property portfolio.

Fairness Initiative

Change initiative introduced in 1999 and co-ordinated by the Appeals business line that supports and strengthens the fairness of all CCRA programs.

Fairness Provisions

Legislation introduced in the early 1990s that provides relief (e.g., forgiveness of interest and penalties) to clients in certain circumstances beyond their control (such as hardship).

Filing compliance

The voluntary and timely filing of a required tax return.

Fiscal Impact

Total fiscal impact includes federal and provincial tax (participating provinces only), federal tax refund offset or reduced, interest and penalties, and present value of future tax assessable.

Focus group technique

Qualitative research, usually undertaken by qualified consultants, designed to provide insight into public reaction to, or attitudes or impressions about, a narrow topic. Unlike quantitative research, results cannot be attributed to the entire population.

Focus test

A qualitative analysis designed to gauge public reactions, attitudes, or impressions about a narrowly defined topic. These analyses are carried out with the aid of focus groups—facilitated interviews typically involving six to ten members of a relevant client group.

FTE

Full-time equivalent (FTE) is a measure of human resource consumption based on average levels of employment. FTE factors out the length of time that an employee works during each week by calculating the rate of assigned hours of work over scheduled hours of work.

Goal

A general statement of desired result to be achieved over a specified period of time. The term goal is roughly equivalent to Strategic Outcome.

Governance

Governance is a comprehensive term used to denote the institutions and processes by which people are governed. It is the exercise of authority, control, management and power of government. More specifically, it refers to the operations of legislatures, cabinets and public services in Canada and the manner in which they interact with the public, including the style and substance of consultation, the management of the public service and the capacity of the private sector to participate effectively in the development and implementation of public policy.

Guaranteed Income Supplement

A program aimed at supplementing the income of low-income seniors, which is administered by Human Resources Development Canada.

Indicator

Indicators are further detailed quantitative and qualitative descriptors of outcomes. They tell you what the organization is doing. There are often many indicators for each performance measure. Indicators relate directly to the performance measure, and indirectly to the objective and outcome. Often indicators are described as "the number of...".

Intermediate Outcome

Intermediate outcomes are the external consequences that contribute to meeting our strategic outcomes. Individually or in aggregate, the results of the intermediate outcomes provide a measure of our success in achieving our strategic outcomes. CCRA has identified six intermediate outcomes:

• Canadians pay their fair share of taxes, and the tax base is protected

• Canadians receive their rightful share of entitlements

• Canadians' health, safety, security, and business interests are protected, and Canada's economic growth is supported, through responsible border and trade management

• Canadians receive an impartial and timely review of contested decisions through our redress system

• Provinces/territories and other government departments rely on the CCRA as a key service provider

• Performance of our business services and operations are maximized through modern and innovative management approaches

Memorandum of understanding

A formal agreement between two or more parties that lays out terms and conditions for fulfilling commitments and undertakings that have been mutually agreed to.

Mission

An organization's mission statement provides the social, political and economic justification for its existence. The mission statement may be very short, and should reflect the organization's identity, its purpose, its desired response to key stake holders, its philosophy and core values, and its ethical standards.

Modified Cash

When payables at year-end are also included in that year's expenditures.

Non-arm's length transaction

A transaction among participants who are not dealing at arm's length with each other; for example, a transfer of assets between members of a related corporate group.

Non-refundable credit

Non-refundable tax credits reduce the amount of income tax you owe. However, if the total of these credits is more than the amount you owe, you will not get a refund for the difference.

Non-workable disputes

Files that cannot be pursued because they are referred to another party (for example, to Headquarters or to the Department of Justice) for opinion or they are related to a case in court on the same issue.

Operating Environment

Refers generally to the conditions, trends and developments existent in the external environment that are significant to the operations or directions of an organization. The operating environment is frequently subdivided into economic, technological, political and social domains.

Output

The actual activities, products or services produced by carrying out a program or initiative. To be differentiated from outcomes, which are considered the effects or ramifications of outputs; e.g. an audit may generate additional tax revenue as an output and result in increased taxpayer compliance as an outcome.

Performance

How well an organization, program, etc. is achieving its planned results measured against anticipated results. In results-based management performance is measured and assessed, reported, and used as a basis for management decision-making.

Performance Drivers

Performance drivers are the external or internal factors or events that we believe have an important impact on the CCRA's ability to meet its success criteria.

Performance Measure

A performance measure describes how well the organization is doing in terms of meeting its goals and objectives. The common types of measures include: effectiveness measures – extent to which the organization is achieving the outcome (doing the right thing); efficiency measures – the proposed ratio of relevant outputs to relevant inputs (doing things right); client service – the degree to which the needs and expectations of the recipients of the service are satisfied with the level and quality of service received; and timeliness – the extent to which the work is done on time.

Performance Reporting

The process of communicating evidence-based performance information. Performance reporting supports decision-making, serves to meet accountability requirements and provides a basis for citizen engagement and a performance dialogue with parliamentarians.

Planned spending

Main estimates (Report on Plans and Priorities)

Processing time

For income tax, GST/HST/excise, CPP/EI, and trade administration programs, processing time means the average number of calendar days between the date of mailing of the Notice of Objection and the date the client was notified of a final CCRA decision, excluding the number of days a dispute was in non-workable status. For the Adjudications program, processing time excludes files that at any time were held in non-workable status.

Refundable credit

Refundable tax credits are credits against tax owed. If the total of these credits is more than the amount you owe, you may claim a refund for the difference.

Remittance Compliance

The voluntary and timely payment of all taxes that have been reported.

Revenues Credited to the Vote

These revenues include amounts which are recoverable through Human Resources Development Canada from the Canada Pension Plan account for administering Part I of the Canada Pension Plan and from the Employment Insurance account for administering Parts IV and VII of the Employment Insurance Act.

Risk

The uncertainty that surrounds future events and outcomes. It is the expression of the likelihood and impact of an event with the potential to influence the achievement of an organization's objectives.

Risk Management

A systematic approach to setting the best course of action under uncertainty by identifying, assessing, understanding, acting on, and communicating risk issues.

Service Standards

Public commitments of standards of service that a client, customer or stake holder can normally expect, including such elements as descriptions of the service to be provided, service pledges or principles, delivery targets, and complaint and redress mechanisms.

Spike Centre

A CCRA location that is used to assist primary sites in handling high call-demand over short periods of time.

Strategic Outcomes

The long-term and enduring benefits to Canadians that can be derived quite naturally from a department's vision and efforts. These outcomes describe the difference a department is mandated to make. In most cases, these outcomes will require the combined resources and sustained effort of many partners over a long period of time.

CCRA has identified two Strategic Outcomes:

• That Canadians comply with tax, trade, and border legislation

• That the CCRA is seen as a leading-edge service organization

Tax Base (protecting the)

The tax base is a government's greatest revenue-generating asset. It represents the broad range of goods, services, income, etc. that is subject to a tax. Protecting the tax base means the mix of activities undertaken by a tax administration to minimize real or potential leakage through reviews, audits, and investigations, among others.

Tax on Income (TONI)

Under the previous “tax-on-tax” system, individual income taxes in all provinces and territories (except for Quebec, which separately administers its own individual income tax) were computed as a percentage of the basic federal tax amount. Under TONI, they have the option to define their own tax rate schedules to be applied directly to taxable income. In addition, they may add supplements to existing non-refundable tax credits such as personal or spousal amounts, and introduce new non-refundable tax credits.

Tax Year

The annual period for which taxes are being reported; for most individuals this would be the preceding calendar year.

Total authorities

Main estimates + supplementary estimates + year-end adjustments; i.e., the full amount available to spend.

Transfer price

The price at which parties trade services, tangible property, and intangible property across international borders.

Values

The guiding principles that define an organization's corporate culture and reflect its distinct character. These values may involve the kind of product or service to be produced/delivered the kind of organization that it wants to be, or a managerial philosophy. Examples of values are professionalism, respect, cooperation, integrity, creative thinking, and dependability.

Vision

The vision clarifies what the organization should look like and how it should behave as it fulfils its mission. A vision statement emphasizes purpose, behaviour, performance criteria, decision rules, and standards. Other characteristics include being relatively future oriented; reflecting high ideals and challenging ambitions; and capturing the organization's uniqueness and distinctive competence.

Voluntary Disclosures Program

Provides clients with the opportunity to correct any past errors or omissions, and to report without penalty to the CCRA on their tax, duty, and tariff obligations.

Waiver

When penalties or interest have not yet been charged, a determination is made not to charge the amount, either at the client's request or on the CCRA's own initiative.

Write-offs

Uncollectible taxes that are deleted from active inventory of accounts receivable after the Agency has taken all reasonable collection action and exhausted all possible means of collection.