POR Registration Number: POR 058-16
PWGSC Contract Number: 46558-172986/001/CY
Contract Award Date: October 25, 2016
Delivery Date: March 30, 2017

Prepared for:
Canada Revenue Agency

Prepared by:
Corporate Research Associates Inc.

May, 2017

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For more information on this report, please email:
media.relations@cra-arc.gc.ca

Executive Summary

In preparation for upcoming changes to the manner in which authorization requests are completed and submitted in Represent a Client, the Canada Revenue Agency was interested in obtaining feedback from business representatives, including large businesses where accounting is done internally, as well as large, medium-size and sole-proprietor third party accounting firms. The research aimed at assessing the strengths and weaknesses of the existing and new process, assessing awareness and usage of the Business Registration Online service, and garnering opinions on CRA's plans to alter the issuance of selected business accounting statements. As such, a total of six focus groups were conducted, namely two in each of Edmonton, Toronto, and Montreal. Group discussions were held from November 28^th to December 1^st, 2016.

Results of the Canada Revenue Agency Electronic Authorization for Business Qualitative Research Study show that businesses are largely resigned to the fact that electronic submission of the RC59 to the CRA will become a standard business practice, and all anticipate that their business / firm will migrate their business processes in that regard as required, without problem. Currently, electronic submission of the RC59 appears to be the standard practice for most in the English-language focus group locations, although some prefer paper submission primarily due to current practice (e.g. use of tax software), discomfort with technology, or a concern with online security risk.

Businesses are largely supportive of the new system and recognize that it offers a variety of key benefits – most notably greater convenience, time efficiency and easy access. Electronic submissions are deemed to provide faster processing time with the CRA and ultimately it is assumed it will result in an elimination or reduction of errors (both for the client and at the CRA). Despite recognition of the benefits offered by the new system, businesses consistently recognized several drawbacks or concerns with the system, mostly attributed to a discomfort with technology, perceived security risks, and some resistance to change.

After reviewing the three steps of the new system, participants identified a variety of areas where changes are warranted to simplify the process. For the most part, suggestions focused on creating a more user-friendly process with increased clarity in terminology, less ambiguity, clear formatting when inserting numbers / digits, and more succinct presentation of requests to avoid unnecessary duplication. Ensuring proper printing parameters in the system also warrants attention (including printing documents or pages in PDF format). A wide range of specific changes are outlined in the report for the CRA's consideration as it looks to enhance its new service.

As the CRA implements its new service over the next year, the importance of a multi-mode communications strategy to create awareness of the changes was raised. Across locations and audiences, the importance of electronic communications was underscored, as was a need for clear instruction and support. More specifically, representatives outlined a wide range of proposed communications methods to ensure increased awareness, understanding and usage of the new system, including implementation of such strategies as email, site notifications, written communication, word of mouth, tutorials / videos, and use of social media. As mentioned, findings show the introduction of any changes would be best reinforced by an extensive support system inclusive of a live chat on the RaC homepage to provide quick access to answers and validate any necessary clarification.

Across locations and audiences, most participants, as a matter of course, do register new businesses for CRA programs by creating a Business Number (BN), or new accounts such as an HST account for existing businesses, with most completing such registrations by phone. That said, findings suggest there is a clear lack of awareness of the Business Registration Online (BRO) service and that the key barrier to usage is a lack of familiarity. Indeed, results confirm that for the CRA to grow usage of its BRO service, a concerted effort is needed to increase awareness, effectively communicating the key benefits of using such a service.

Finally, usage of the various business accounting statements varies by market and audience, although those using the forms consistently deem them to be important. Most, in fact, were reluctant to suggest any changes or what could be eliminated. Across audiences, there was consensus that the more information they receive the better, and most would prefer receiving the information than not. When asked what other notifications, reminders or alerts should be issued via the RaC or MyBA service, suggestions were limited to notifications of non-compliance, notification of any CRA action taken (e.g. reassessment), and notification of corporate tax payments.

The contract amount for this project was $54,810.65 (including HST).