Compliance (cont'd)

Tax Services

We have two expected outcomes for this business line. The first is that Canadians pay their fair share of taxes; the second is that the tax base is protected.

Providing Canadians with the tools, information, and assistance they need to comply with their obligations, while processing returns accurately, efficiently, and in a timely manner, encourages participation and shortens the time between filing and the receipt of taxes owing or distribution of funds. At the same time, the right audit program supported by sound risk management discourages non-compliance and thereby ensures the integrity of the tax base.

While we are offering new service options across various communication channels, and continuing to improve response rates, our Annual Report pointed to certain instances where year-over-year performance has declined, largely as a result of funding constraints that have prevented us from keeping pace with business volume increases. For instance, we experienced problems having sufficient staff in place to respond to call demand during peak periods.

We will continue to pursue electronic service delivery, notably for filing personal income and corporate tax returns, GST/HST returns, and payroll source deductions information returns.

Over the planning period, we will work to reduce the need to call by providing alternatives through electronic channels, and by improving information guides and brochures. Providing our clients with fair, accessible, and timely service is essential in promoting and facilitating voluntary compliance. The evolution of our service offerings in all channels will be reviewed and improved as a result of surveys, focus testing and pilot projects to ensure we meet our clients' needs.

Our processing of returns also affects Canadians' participation in the tax system. The introduction of electronic filing options has enhanced our processing capabilities, improving accuracy, timeliness and efficiency. Over the planning period, we will continue to pursue electronic filing options in four key areas: personal income tax returns (T1); corporate tax returns (T2); GST/HST returns, and payroll source deductions information returns. We anticipate that 1.9 million Canadians will use T1 NETFILE for the 2002 program. We will also be introducing EFILE On-Line, allowing tax preparers to transmit their clients' T1 returns over the Internet.

We are also taking actions to improve performance in our review and enforcement programs, investigations, and in the area of debt management. With additional resources flowing from the Resource and Management Review, audit coverage rates will be increased over the planning period. These efforts will be carried out with a strong and ongoing focus on fairness and treating our clients with respect. We will also continue to improve our capacity to reduce the level of accounts receivable, including by pursuing new means to quickly reallocate work in this area from office to office. The timely collection of overdue amounts is a core element of our overall compliance and enforcement activities and provides the revenue necessary to support Canada's social benefits and economic programs.

We will also contribute to the Government of Canada's efforts to work with the private sector to improve Canada's innovation performance. The Scientific Research and Experimental Development (SR&ED) program, which we administer, is Canada's largest federally supported incentive program for industrial R&D. We will work to ensure that this program reaches more of Canada's smaller R&D performers.

Exhibit F outlines the anticipated results and success criteria for each of the two Tax Services expected outcomes. The success criteria emphasize improving performance against current standards, and developing new standards and measures of performance. In addition, they set goals for expanded audit coverage and enhanced capacity to address accounts receivable. We will continue to refine our success criteria in building our capacity to report on performance in a clear and open fashion.

Date modified:

2002-03-21