Innovation (cont'd)

Advancing Change Objective 1

To transform our core business in a manner that keeps pace with changes in technology, business and management practices, and the expectations of Canadians

We recognize that our clients expect timely, fair, competent, and courteous services, and that meeting demands and exceeding expectations for better services through business transformation is how we ultimately achieve both our strategic outcomes.

Our Customs Action Plan is our primary strategy for transforming customs services. Through it, we are using state-of-the-art technology to strengthen the security of our borders and streamline the movement of low-risk, legitimate goods and people. The Action Plan's main features are risk-based trader and traveller processes and a fair and effective sanctions regime. The Customs Action Plan will make a significant contribution to fulfilling the Smart Border Declaration, signed by Canada and the U.S. in December 2001, and to collaborative work to develop joint processes at the border and best practices benchmarks for international seaports and airports. Continued collaboration with other federal government departments will also be central to our efforts. In the post-September 11 era, these collective efforts will raise the level of public security while ensuring that increased Canadian and U.S. border vigilance does not impede legitimate cross-border commerce and travel.

The Customs Action Plan is our primary strategy for transforming customs services. By 2005, we expect that all elements of the Action Plan will have been implemented.

Specific innovations include Customs Self Assessment (CSA), which will provide for the immediate clearance of pre-approved shipments entering Canada from the U.S.. We expect that by 2005, CSA will account for over 50% of imports. This program of enhanced security screening in advance for importers, carriers and drivers will improve both security and efficiency at the border. Meanwhile, other commercial shipments of higher or unknown risk will be processed through the Advanced Commercial Information system, which will provide more pre-arrival, electronic data to facilitate better risk assessment and targeting. On the travel side of the customs business, low-risk travellers will be able to cross at the Canada - U.S. border using a common highway NEXUS permit card at major crossings, while pre-screened travellers at major international airports will be processed through the Expedited Passenger Processing system using biometric technology. We estimate that we will spend in excess of $50 million in 2002-2003 to implement these and other initiatives. By 2005, we expect that all elements of the Customs Action Plan will have been implemented.

To continue efforts to transform our business, most particularly in tax services and benefit programs, we are pursuing our Future Directions initiative, engaging individual Canadians, businesses, staff, and unions, to confirm a client-focused service vision. Consultations are being conducted around five key areas: retaining public trust; client-oriented service; building on partnerships; building organizational capacity; and ensuring best value.

Although consultations are still underway, certain themes are beginning to emerge. Businesses want better electronic interaction with the CCRA to deal with day-to-day matters and to file returns electronically, as well as streamlined processes to reduce the overall compliance burden and eliminate certain reporting requirements. Our employees want improved professional development so they can remain up to date with business methods and "move with business, at the speed of business."

Future Directions is expected to conclude in 2003-2004, when we will have developed and validated action plans for each client group. The commitments they contain will be clearly set out in our subsequent business plan.

To confirm the service expectations of individuals and benefit recipients, we will be conducting focus groups and surveys in 2002-2003. For charities, our involvement in the government-wide Voluntary Sector Initiative will help provide us with the information we need to improve service and fairness to these clients, as well as promote compliance and foster public confidence. Future Directions is expected to conclude in 2003-2004, when we will have developed and validated action plans for small and medium enterprises, large business, individuals and benefit recipients, and charities. Costs in 2002-2003 associated with Future Directions consultations are being absorbed within business line budgets. The commitments contained in the action plan along with the costs for their implementation will be set out in our subsequent business plan.

Transforming our core business to respond more effectively to the service priorities of our clients will strengthen our ability to encourage provinces and territories to rely on us as a key service provider. In 2002-2003, we will work to expand our administration of tax programs on behalf of the provinces, including corporate income tax programs, and to build on our successful partnership with the Workers' Compensation Board (WCB) of Nova Scotia to increase the number of provincial WCB programs we administer.

Moving ahead with business transformation depends heavily on our ability to stay in step with advances in technology and systems development.

These efforts will be supported through senior-level consultations via the joint Senior Management Committees, which provide important mechanisms for consultation with the provinces and territories on program delivery, innovation, and performance. They are being established under the terms of the Services Management Framework (SMF) agreements that we have concluded with seven provinces and one territory. In 2002, we expect to conclude SMF agreements with New Brunswick, Newfoundland and Labrador, and the Yukon.

Finally, moving ahead with business transformation depends heavily on our ability to stay in step with advances in technology and systems development. Our plan calls for strategic investments in technology that will, in turn, enable us to meet our business objectives. In 2002-2003, our priorities will include the following:

• Develop T2 NETFILE which will allow clients to file corporate income tax returns using the Internet.
  
  
• Expand GST/HST TELEFILE throughout Canada and offer GST/HST NETFILE on a pilot basis with full implementation envisaged in 2003-2004.
  
  
• Undertake a pilot project to enable clients to file on-line notices of objection related to income tax.
  
  
• Pursue work with other government departments through Government On-Line in applying rigorous security protocols for electronic transactions.
  
  
• Develop an automated, interactive question and answer information service for frequently asked tax questions.
  
  
• Improve the responsiveness of the GST/HST credit, modernizing our administration and responding to changes in family circumstances.
  
  
• Enhance current excise tax systems for improved service delivery [Other Levies System (OLS)].
  
  
• Put in place a new e-business computing infrastructure to support the growing requirement for electronic services and applications.

Date modified:

2002-03-21