Compliance – Our Core Operations
Disclaimer
We do not guarantee the accuracy of this copy of the CRA website.
Scraped Page Content
Compliance – Our Core Operations
The change initiatives of our innovation agenda, such as smart border management and expansion of electronic services, are aimed at transforming the way we do business to provide the best possible service to Canadians and businesses. At the same time, day in and day out, we work to continuously improve our core operations—the policies, processes, tools, and systems we already have in place—to meet our second strategic outcome: that Canadians comply with Canada’s tax, border, and trade legislation. Here, we continuously seek to increase levels of voluntary compliance while identifying and addressing non-compliance as swiftly as possible where it occurs. Promoting a high degree of voluntary compliance reduces the burden of administering and collecting taxes and duties. Addressing noncompliance helps ensure everyone pays their fair share. It also protects the tax base upon which a wide range of social and economic programs that enrich the quality of life of all Canadians depends.
Our compliance work is delivered through five business lines: Customs Services, Tax Services, Appeals, Benefit Programs and Other Services, and Corporate Management and Direction. Activities within each span a continuum from facilitated voluntary compliance at one end to enforcement at the other. Our approach to compliance is based on the belief that most people will voluntarily comply with the law if they are given the right opportunities, information, and tools. We take pride in the high overall level of voluntary compliance in Canada about 95% of all the revenues that are remitted to us are paid and collected without any verification and enforcement activities. While non-compliance may have many root causes—it may be unintentional, the result of wilful avoidance, intentional misrepresentation, or fraud—we employ a variety of strategies to address it.
The exhibit on the following page provides a schematic of our compliance continuum. It illustrates how we apply our compliance activities according to the risks associated with client behaviour across a wide client base. At one end, we seek to facilitate voluntary compliance by providing the right information and service at the right time. At the other, we work to address serious compliance risks, such as tax evasion and smuggling, through responsible enforcement backed up by a fair and timely dispute resolution system (i.e., Appeals).
This exhibit also indicates the wide client base we accommodate and the checks and balances we have in place to allow us to plan and deliver our programs in the most effective way possible. The diagram on the following page illustrates the approximate percentage of our resources we plan to dedicate to each type of compliance activity.
 |
Achieving the right mix of activities along the compliance continuum is not a static exercise, but a dynamic, complex process that requires balancing the rights of clients with protecting the public interest. This process involves applying sophisticated risk management tools so we can identify the greatest risks and shift resources to address them. It also involves an active communications strategy, of which this Summary of the Corporate Business Plan is an important part, to ensure that the public understands the elements of our compliance strategy.
Our judgement, based on our experience and the evidence we have, suggests that while it is material, non-compliance in Canada is contained at relatively low levels, in line with prior years and other countries. While it is unreasonable to assume that all wilful non-compliance can be entirely eliminated, when instances are identified, we will continue to work with our partners to ensure that those responsible are brought to task. The following sections identify our planned activities to proactively facilitate and promote voluntary compliance, while identifying and taking action to address compliance risks, thereby preserving the integrity and fairness of the system.
 |
Tax Services
Our expected outcome in Tax Services is that Canadians pay their fair share of taxes and the tax base is protected.
Tax Services, the CCRA’s largest business line, represents approximately 54% of the agency’s proposed $3.7 billion budget for 2003-2004. It assists over 25 million individuals, businesses, trusts, and organizations to meet their obligations under the tax system. Each year, we collect some $300 billion in gross taxes and excise duties on behalf of the federal and provincial governments—the equivalent of about $1.2 billion every working day. We also administer billions of dollars in tax expenditures, such as scientific research and experimental development tax credits, that generate refunds or reduce the amount of tax that would otherwise be owed.
Tax Services compliance operations will be under significant fiscal pressure in the first year of the planning period, due in part to non-recurring significant carryforwards from prior years, internal reallocations from low to higher priority areas, the sunsetting of special funding related to prior-year budget items, and the requirement to absorb the cost of the enhanced technology infrastructure required to accommodate escalating electronic filing targets for T1 individual returns. In addition, the Tax Services business line will manage the impact of an expanding economy and the consequent growth on workload volumes within the existing budget. In this context we face four specific challenges.
1. Maintaining high-quality client services that encourage and facilitate participation in the tax system
The telephone remains the most frequently used means of contact. We answer nearly 25 million telephone calls a year—17 million by staff and some 8 million through our automated touchtone telephone systems. Over the planning period, we will continue to achieve our caller accessibility target of 90%-95% and focus our efforts on meeting our internal performance standard of answering 80% of calls within 2 minutes of entering the queue. We will establish new service standards for telephone services, expanding beyond accounting for timeliness to accuracy and reliability as well.
Ultimately, our goal is to reduce the need for clients to call. More of our clients are choosing the Internet to obtain information from us—our number of Web hits almost doubled to 32 million in 2001-2002. We are introducing a wider range of self-serve offerings such as the “My Account” page that will provide information on individual tax and benefit accounts. We will also redesign our Web site to make it more intuitive and easier to use.
Finally, providing impartial and consistent treatment in all our dealings with clients—from assessing penalties to cancellation of interest—demonstrates our commitment to fairness, which encourages participation and promotes confidence. We plan to fully implement a nation-wide fairness monitoring program by 2005-2006.
2. Processing returns in a manner that promotes the timely, accurate, and efficient assessment of taxes owing, the distribution of refunds as appropriate, and the proper updating of account information
Over the planning period, the volume of T1 individual returns we process is expected to continue to grow. However, we will continue to meet our 98% T1 processing standard. To do so, we will need to build the capacity to process 75% of all T1 returns returns electronically using NETFILE, TELEFILE, and EFILE over the next few years (we processed 39% electronically in 2002). However, clients must have confidence in the quality and security of our Internet services before they opt to use them. Meeting the 75% target will require a dramatic change to our program delivery structure to handle the increase and maintain service levels, as well as significant investments in our information technology resources. With the recent introduction of T2 Internet filing (i.e., corporate returns), we will focus our efforts on meeting our revised service standard for processing these returns—an area we identified was in need of improvement in our 2001-2002 CCRA Performance Report.
Enhancements to our T3 trust returnsprocessing system are also expected to result in improved processing times.
3. Employing an appropriate mix of compliance and enforcement activities to effectively target and address compliance issues
Our audit and review activities are aimed at verifying compliance and addressing cases of non-compliance. Maintaining an adequate level of coverage is vital to encourage voluntary compliance and maintain the confidence of Canadians that non-compliance is being addressed. In our judgement, levels of audit coverage are still below what is required due to delays in “ramping up” to fully productive levels the new resources we received for this purpose in 2000 (e.g., for hiring and training new auditors). One of our key commitments is to increase audit coverage rates for all our client groups by 2005-2006. In our judgement, material non-compliance is contained at low levels in line with prior years and compared to other countries. We will also continue to advance our understanding of noncompliance, including in specific areas of high risk such as the underground economy, international transactions, and fundraising and other forms of material support for terrorism through the CharitiesRegistration (Security Information) Act.
To improve our capacity to identify and measure non-compliance, we will fully implement our new compliance measurement framework, including developing a comprehensive set of compliance indicators. Media attention concerning potential cases of GST fraud has further
highlighted the importance of providing information to Canadians to address non-compliance, which in turn helps promote confidence and participation in the system. Over the planning period we will implement enhancements to our business registration process and continue using state-of-the-art compliance tools. In addition, we will issue a report called “Achieving Tax Compliance in Canada” that will provide information on our approach, the results we are achieving, and our plans to improve compliance in the future.
4. Ensuring that the majority of Canadian individuals and businesses continue to participate in the tax system and meet their obligations
The timely collection of overdue accounts is one way we ensure that clients meet their obligations. However, over the past few years outstanding gross receivables have continued to grow in relation to gross revenues. Our immediate challenge is reducing the gap between annual production (i.e., resolving accounts through cash collections and where required, write-offs of accounts) and intake of new debt. Over the planning period, we will take action to limit the rate of growth of accounts receivable, reduce the existing inventory of accounts older than five years, and convert outstanding amounts to cash to avoid jeopardizing timely collection. We will also identify program and technology efficiencies to enable us to improve the timeliness of our collection activities.
Another way to support fair and equitable treatment of clients is to ensure that those who are eligible participate in specific programs that the tax system provides. The Scientific Research and Experimental Development tax credit, for example, is intended to encourage research and development in Canada, which is critical to our future prosperity as an innovative, knowledge-based economy.
Over the planning period, in collaboration with private-sector partners, we will take steps to make this program more accessible to small businesses in Canada.
The following table describes the anticipated results and success criteria we will be using for the planning period that are critical to achieving our expected outcome for Tax Services.
| Managing the Compliance Continnuum | |
|---|---|
| Anticipated Results | Success Criteria |
| Majority of Canadians and businesses participate in the tax system | Strong levels of filing, remittance, reporting, and registration compliance, generally consistent with the performance of past years |
| Les contribuables reçoivent en temps voulu des services accessibles, fiables et équitables qui répondent à leurs besoins | Meet or exceed our service standards and internal performance targets. For example:
Process 90% of fairness requests related to accounts receivable and trust account programs within 4-6 weeks Provide technical interpretations to taxpayers within 90 days Process 80% of applications to registered pension plans within the published timeframes of 60 days for deemed registrations and 180 days for complete review Process paper T1 returns within 4-6 weeks of receipt and electronic returns (EFILE, NETFILE, TELEFILE) within 2 weeks of receipt Process GST/HST returns within 21 days of receipt Process 75% of T2 corporation returns within 50 calendar days and 90% within 90 calendar days Develop service standards for telephone enquiries, adapted from existing internal performance targets, by 2003-2004 Overall client satisfaction rating from our annual survey continues to meet or exceed our 71% benchmark result for 2000-2001 Continued effectiveness in communicating and implementing legislative changes within required timeframes Increased take-up of alternative electronic information services and reduced caller volumes Implementation of a systematic nationwide fairness monitoring program by 2005-2006 Successful implementation of the Scientific Research and Experimental Development (SR&ED) Strategic Business Plan |
| Processing of returns is accurate, timely, and efficient | Meet or exceed service standards and internal performance targets, for example:
Process 98% of on-time T1 returns by mid-June Process paper T1 returns within 4-6 weeks of receipt and electronic returns (EFILE, NETFILE, TELEFILE) within 2 weeks of receipt Process 75% of current-year T2 corporation income tax returns within 50 days and a further 15% within 90 days Process 100% of all GST/HST returns within 21 days of receipt Process 95% of T3 trust returns within 4 months Process T4 returns filed via the Internet within one business day Process SR&ED tax credit claims within established service standard timeframes 90% of the time |
| Tax debt is within targeted level | Reduce the inventory of older accounts (greater than 5 years) relative to prior years
Meet or exceed cash collections commitments to the Government of Canada of $8.4 billion for 2003-2004, increasing to $8.6 billion by 2005-2006 Close the gap between the dollar value of production (cash collections, write-offs, and other adjustments) and the intake of new debt Stabilize or prevent further deterioration in the ratio of outstanding receivables to gross revenues As part of a multi-faceted framework for managing accounts receivable: by 2003-2004, implement a National T1 Pool pilot project by 2004-2005, evaluate year 1 of the pilot project |
| Compliance behaviour is understood with a view to minimizing areas of noncompliance | Implementation of the Compliance Measurement Framework by 2004-2005
Development and implementation of an e-commerce compliance strategy by 2004-2005 |
| Allocation of resources is guided by risk | Continued effective use of information matching programs to identify discrepancies between amounts reported on tax returns and third-party information reports
Results from validation programs continue to show much higher adjustment rates and average dollar amounts compared to random selections Results from audit and enforcement programs demonstrate effectiveness in flagging risky returns Investigations continue to detect proceeds of crime and make referrals, as required, for criminal prosecution Meet or exceed 2000-2001 benchmark for number of returns and registrations secured through the non-filer program Meet or exceed anticipated fiscal impact levels |
| Actively seek legislative changes as required to enhance simplification and minimize noncompliance | By 2005-2006, implement a formal mechanism for tracking and reporting on legislative issues |
| The right compliance programs are used, are sufficiently resourced, and are effectively delivered |
Meet or exceed anticipated fiscal impact levels, for example: Provide for increased revenue of: $143 million in 2003-2004, $188.7 million in 2004-2005 and 2005-2006 through the GST/HST delinquent filer program Increase revenue by $33.7 million in 2003-2004, $45.8 million in 2004-2005 and 2005-2006 through Employer Compliance Audit Program Increase review and examination of Employer Withholding accounts to 5% of total Employer Registrants Base Continued participation in audit protocol agreements By 2005-2006, meet anticipated audit coverage levels (to be revised as necessary to account for increased population growth and adjustments in funding): Large corporations – 60% for large files and 20% for basic files Small and Medium business – 1.16% for unincorporated businesses and 1.26% for corporate files GST/HST files – 1.38% |
| Knowledgeable and skilled workforce is in the right place at the right time | Meet resource utilization targets in line with approved funding
Training programs are in place by 2005 to meet the changing skills and knowledge required to deliver on Future Directions initiatives |
Benefit Programs and Other Services
Our expected outcome in Benefit Programs and Other Services is that Canadians receive their rightful share of entitlements.
The income-based benefits that we issue on behalf of federal, provincial, and territorial governments provide vital support to low- and moderate-income families and individuals. Through programs that include the Canada Child Tax Benefit (CCTB), the goods and services tax/harmonized sales tax (GST/HST) credit, as well as 17 provincial and territorial benefit programs, we issue over $11 billion annually in taxfree benefit payments to over 10 million Canadians. In addition, provincial and territorial partners also rely on us to transfer data that helps them properly calculate social assistance, and Human Resource Development Canada engages us to issue rulings for the Canada Pension Plan and Employment Insurance programs.
Planned spending in this business line accounts for approximately 6.0% of the CCRA’s $3.7 billion budget. For 2003-2004, planned spending is lower than in 2002-2003, primarily due to a one-time sizeable carryforward from 2001-2002. In the context of reduced funding levels and increasing program pressures, we face five specific challenges.
1. Maintaining strong performance in the timely delivery of benefit payments
Ensuring timely payment of three million CCTB payments each month and nine million GST/HST credit payments each quarter is not automatic. It takes ongoing planning and effort. Over the planning period we will work to sustain our long-standing record of issuing well over 99% of some 67 million benefit payments annually on time. To do so, we will rebuild our core processes over a multi-year period through the redesign of our Individual Credit Determination system, which will include introducing new capabilities such as real-time updating and calculations, and case management tools.
2. Improving our telephone accessibility for enquiries from benefit clients
While we have reached our caller accessibility performance standard of 80% to 85% for CCTB, we have yet to reach this for GST/HST credit telephone enquiries. Over the planning period we will work to improve caller accessibility and call wait times for both these national benefit programs so that 80% of callers who reach our queue can speak to an agent within two minutes. In addition, our strategy is to reduce the need to call in the first place by ensuring clients have access to key information through other avenues during peak call-volume periods. This will include a new Interactive Information Service on our Web site which will provide answers to common benefit enquiries. We will also introduce the “My Account” page to our Web site, which will give recipients a convenient, single point of access for information about their benefit accounts.
3. Maintaining the integrity of the benefit rolls by concentrating our payment validation efforts to ensure program take-up and to mitigate the risk of non-compliance
Ensuring that payments are not only timely, but also accurate, fosters trust in our administration of benefit programs. Over the planning period, we will work to ensure that potential benefit recipients know how to access benefits, and we will continue to protect benefit programs from abuse by concentrating our validation efforts in areas of highest risk so that entitled clients get the right amount—no more and no less. We will employ more sophisticated risk management approaches to better target high-risk clients for additional review, using our data warehouses and related computer-based profiling tools. We will also implement service standards for payment validation.
4. Ensuring that skilled and knowledgeable staff is in place to handle benefits business
Over the planning period, we will develop additional staffing flexibilities to ensure that the right mix of staff, with the right tools and training, are in place to reach our standards for timeliness, accuracy, and client accessibility.
5. Developing better mechanisms for demonstrating the cost-savings that we can achieve for partners that choose to have CCRA administer programs on their behalf
To win more business from federal, provincial, and territorial partners, we must generate more detailed information on the cost-savings that can accrue to them from using our systems. Progress on the Activity-Based Costing initiative will help us to better estimate the incremental costs of new activities for partners.
The following exhibit describes the anticipated results and success criteria we will be using for the planning period that are critical to achieving our expected outcome for Benefit Programs and Other Services.
| Expected Outcome – Canadians receive their rightful share of entitlements | |
|---|---|
| Anticipated Results | Success Criteria |
| Program communication and delivery is fair and responsive to recipients’ needs | Review each year the effectiveness of communication tools to promote take-up among potential recipients and inform existing clients about their entitlements
Improve caller accessibility for GST/HST credit calls to meet the 80%-85% internal performance standard Improve call wait times for both CCTB and GST/HST credit programs Implement telephone service standards by 2003-2004 |
| Entitled recipients receive timely payments and credits | Process 99% of all CCTB, GST/HST credit, and associated provincial and territorial payments on time
Meet the 98% service standard for processing CCTB applications on time (achieved 97% in 2001-2002) Meet the 98% service standard for processing client account adjustments on time (achieved 80% in 2001-2002) Process 85% of CPP/EI rulings on time (achieved 81% in 2001-2002) |
| Entitled recipients receive accurate payments and credits | Meet the 98% internal performance standard for accurate processing of client adjustments
Meet the 98% internal performance standard for accurate processing of CCTB application |
| Knowledgeable and skilled workforce is in the right place at the right time | Develop staffing flexibilities, involving the 839 full-time equivalent employees, to ensure that the right mix of staff, assisted by the right tools and the right training, are in place |
Customs Services
Our expected outcome in Customs Services is that Canadians’ health, safety, security, and business interests are protected, and Canada’s economic growth is supported, through responsible border and trade management.
We are responsible for administering a range of laws and regulations governing everything from the correct labelling of goods to preventing the abduction of children and combating terrorism. We process millions of travellers and traders entering Canada each year, offering the right information and services to individuals and businesses to assist them in complying with their obligations. As well, we manage risks and provide effective enforcement in a manner that seeks to reduce impediments to the travel and trade that is essential to the health of the Canadian
economy.
Over the planning period, the budget for Customs core operations is expected to remain virtually unchanged, averaging some 15.6% of the CCRA’s proposed $3.7 billion budget for 2003-2004. As discussed earlier in this Summary, we will be pursuing discussions with the Treasury Board Secretariat to secure separate funding of about $275 million over five years to meet the commitments under the Smart Border Declaration. Notwithstanding, the CCRA faces six specific challenges in delivering Customs core services.
1. Delivering core programs to ensure safe homes and streets for Canadians against a backdrop of escalating threats to the North American community
Over the planning period, we will continue to place a high priority on working in collaboration with other law enforcement agencies in Canada and abroad to share intelligence and best practices to prevent the entry into Canada of drugs and other contraband. We will also develop memoranda of understanding with other federal departments to better identify and respond to environmental threats that include disease, endangered species and hazardous materials. Our participation in international trade negotiations promote a fair, consistent, and stable trade environment. On the front line, we continue to emphasize the Officer Powers Program that has empowered customs officers to arrest and detain persons suspected of a number of Criminal Code offences
2. Maintaining current levels of service without compromising security in spite of increased volumes of trade transactions
Over the planning period, the Customs Action Plan, and its risk management principles of self-assessment, advance information, and pre-approval, will continue to guide our efforts to manage increasing volumes of trade transactions without compromising security.
3. Fulfilling commitments laid out in the Smart Border Declaration and 30-Point Action Plan, in spite of long-term funding pressures not included in the funding envelope
In addition to the work we are doing on the development of a cohesive, integrated vision of Customs border management and protection, we will be accelerating efforts to increase security through secure infrastructure, co-ordination, and information sharing. In the first year of the planning period, we will be working with the Treasury Board Secretariat to find ways to manage the resource pressures stemming from the requirement to fulfill Canada’s commitments under the Declaration.
4. Developing reliable compliance measures for border and trade issues through the Compliance Improvement Plan process
Over the planning period, we will put in place comprehensive, balanced, and dynamic strategies to ensure responsible enforcement and border protection to increase our efficiency, consistency, and accessibility, while reducing the reporting burden and compliance costs for our clients. The Compliance Improvement Plan divides this work into three sub-areas where we will focus our efforts: border management, including front line issues such as immigration, contraband, and health and safety; Post-Release Verification, which focusses on trade administration priorities such as NAFTA origin requirements, dumping, and countervailing measures; and client service, which is where we foster voluntary compliance through fairness, high-quality information, and efficient and responsive service.
5. Enhancing border compliance through robust risk management and performance measurement
Current methodology for measuring compliance in Customs services is insufficient. Over the planning period, we will undertake further analysis and develop clearer measures to more effectively identify and target areas of non-compliance and measure the success of new initiatives. This will allow us to draw firmer conclusions regarding compliance levels. We will also encourage compliance through client service and education, technology, and a fair and flexible sanctions regime.
6. Ensuring that we have a knowledgeable and skilled workforce in the right place, at the right time
Over the planning period, we will work with customs staff and union representatives to resolve issues identified in the recently completed Job Hazard Analysis such as health and safety concerns, as well as other matters such as job classification. The following exhibit describes the anticipated results and success criteria we will be using for the planning period that are critical to achieving our expected outcome for Customs Services.
| Expected Outcome – Canadians’ health, safety, security and business interests are protected, and Canada’s economic growth is supported, through responsible border and trade management | |
|---|---|
| Anticipated Results | Success Criteria |
| Enhanced enforcement that expeditiously identifies and responds to threats to the security, health and safety of society, and to Canada’s economy | Continue to seize a significant portion (40% to 50%) of all contraband drugs seized in Canada
Prompt and appropriate response to all known cases of significant threats to the health, safety and security of Canadians:
Implementation of Officer Powers at eight ports by March 31, 2004 Modernization of memoranda of understanding with key government departments and agencies to allow, among other things, information sharing and intelligence gathering, joint priority setting for compliance improvement and performance reporting, by March 31, 2005 Increased examinations and detection of contraband across all major categories |
| Effective compliance management that enhances personal and economic security, and encourages partnerships and sustained compliance | Develop improved trade compliance data collection mechanisms by March 31, 2004 |
| Responsible services that encourage voluntary compliance and minimize the compliance burden without compromising security | Overall client satisfaction with Customs services is above 77% benchmark
95% of service standards are met (e.g., border wait times, release on minimum documentation, Pre-Arrival eview System release) |
| Certainty and consistency for international trade and ravel | A secure border with the United States that facilitates the movement of low-risk people nd goods
Negotiation and implementation of customs procedures and trade policy instruments elated to new free trade agreements with Singapore, Central America Four, Free Trade Area of the Americas, CARICOM and the new WTO Round by March 31, 2005 Through participation in international organizations such as the World Trade Organization, World Customs Organization and Asia Pacific Economic Cooperation, nfluence international standards for rules on customs tariffs, dumping and subsidy eterminations, valuation and origin of goods, admissibility, trade incentives and ompliance management |
| Knowledgeable and skilled orkforce is in the right lace at the right time | Recruit 340 Customs officers by March 31, 2004
Phase II Officer Powers training to 456 customs inspectors by March 31, 2004 60% of staff receiving Customs Inspector Recruit Training Program will become nspectors in their first year on staff Specialized interdiction and enforcement training for 1,200 to 1,500 Customs officers by arch 31, 2004 |
Appeals
Our expected outcome in Appeals is that Canadians receive an impartial and timely review of contested decisions through our redress system.
Under this business line, the CCRA provides clients with a fair disputeresolution process respecting Canadians’ fundamental right to redress in their dealings with the federal government. We review contested decisions in the program areas of income tax, GST/HST/excise tax, trade administration, Customs enforcement sanctions, the Canada Pension Plan, and Employment Insurance. As of March 31, 2002, over $8 billion in taxes and duties was in dispute, by far the major source of redress claims, involving some 78,000 individuals (up substantially from 57,000 in 2001, largely due to challenges to the taxability of interest paid as a result of pay equity settlements). We are responsible for coordinating the agency’s Fairness initiative and we also administer the. Voluntary Disclosures Program, which allows clients to correct past errors or omissions in their tax, duty, and tariff obligations without penalty.
We consider that we have met our expected outcome if reviews of disputes and contested decisions are, and are perceived to be, fair and impartial; clients find our services accessible and are kept informed of the progress of their disputes and requests; disputes are resolved in a timely and consistent manner; and our collective efforts promote trust in our fairness and impartiality, encouraging voluntary compliance.
Appeals is the smallest of the agency’s business lines, accounting for
approximately 2.6% of the CCRA’s $3.7 billion budget. Over the planning period, we face five specific challenges in meeting our expected outcome.
1. Reducing turnaround times
This is the most significant challenge for Appeals. Turnaround times are important because they indicate whether our redress process is responsive and serves the needs of our clients. We have already identified some 130 improvements to decrease long processing times, some of which have been implemented and are having a positive impact. Over the planning period, we will implement the remaining improvements. This will include modifying the Appeals Information and Reporting Systems (AIRS), our computer-based inventory management system. The new Globus-Case system to be brought on-line in 2003-2004 for tax programs, will facilitate more efficient tracking and reporting of dispute and litigation workloads.
2. Ensuring that the fairness provisions are applied consistently across the agency
We will continue implementing the three-year, agency-wide, fairness provisions monitoring program, which we began in 2002-2003. This will ensure that the fairness provisions resulting from our 7-Point Plan for Fairness, launched in 1999 and now implemented, are being consistently applied and are entrenched in our day-to-day business.
We will also take steps over the planning period to reduce the backlog of unprocessed inventory under the popular Voluntary Disclosures Program, in part by securing stable funding and additional staff. Finally, by 2004-2005 we will complete an evaluation of the Fairness Registry, with a view to improving our capacity to capture information on amounts of cancelled and waived penalties and interest.
3. Practicing effective risk management for dispute and litigation issues
By December 2003, we aim to fully implement a Risk Management Framework, which will improve our capacity to promote the consistent and fair resolution of disputes and litigation within a reasonable time. This will include the development of “complexity factors” to enable us to determine the human and financial resources required for the effective management of files. Our aim is to resolve more cases administratively and for those that do proceed to court, to increase the number resolved in favour of the CCRA
4. Having in place a sufficient number of skilled and knowledgeable staff to handle Appeals business
Over the planning period, Appeals aims to reduce the staffing shortfallto a level of no more than 5% of authorized funding. This will involve a job classification review to increase recognition of the unique complexities driving our staffing issues.
5. Enhancing accessibility, transparency, and consistency
Improving these aspects of the appeals process promotes confidence in the impartiality and fairness of the CCRA. Over the planning period, we will look at ways to improve our measurement of these aspects of performance, including by conducting a national client satisfaction survey in 2003-2004. This survey will assess client satisfaction in such areas as timeliness, transparency and cost, and will help us identify further opportunities for clientfocussed program improvements. We will also begin to accept some disputes filed electronically to enhance the accessibility of the appeals process. We expect to make electronic filing of disputes available in 2003-2004 for the income tax and GST/HST/excise tax programs.
The following exhibit describes the anticipated results and success criteria we will be using for the planning period that are critical to achieving our expected outcome for Appeals.
| Expected Outcome – Canadians receive an impartial and timely review of contested decisions through our redress system | |
|---|---|
| Anticipated Results | Success Criteria |
| The redress process is transparent, accessible, and fair | Meet the enhanced 85% service standard for contacting clients who file disputes with a meaningful status update within 30 days of filing
Achieve an overall client satisfaction rating of at least 10% higher than the 1998 survey result |
| The redress process is timely | Meet case completion targets established as part of the three-year timeliness initiative |
| Fairness provisions are applied consistently across the agency | CCRA monitoring programs confirm that the fairness provisions are being applied consistently agency-wide |
| Risk management is effective for dispute and litigation issues | Full implementation of an appeals risk management framework by December 2003
On average, 90% of all disputes continue to be resolved before reaching the courts(not counting CPP/EI disputes) The majority of decisions appealed to the courts continue to be resolved in favour ofthe CCRA Implementation of new programs for quality assurance and monitoring the consistency in the application of policies and legislation in the decisions on cases, beginning in 2002-2003 |
| Knowledgeable and skilled workforce in the right place at the right time | Reducing our staffing shortage to a level of no more than 5% of allowed funding |
Corporate Management and Direction
Our expected outcome in Corporate Management and Direction is that performance of our business services and operations is maximized through modern and innovative management approaches.
In this business line we provide strategic direction and executive oversight for all CCRA programs and services. We provide a range of internal services to employees and managers, from strategic planning, performance reporting, human resources management, public relations, internal audit and evaluation activities, financial and Information Management/Information Technology (IM/IT), to security and procurement, real property management, and telephony systems and networks. In addition, Legal Services provides corporate legal counsel and advisory services. We also deal with access to information requests, and we monitor adherence to privacy legislation to ensure the CCRA is safeguarding sensitive information.
Planned spending in this business line accounts for approximately 21.9% of the agency’s $3.7 billion budget for 2003-2004. The largest share of these resources is dedicated to IT (approximately 43% in 2001-2002) followed by corporate and executive services (36% in 2001-2002). In future, we plan to reallocate IT operations and investments to other business lines where appropriate, and through efforts to achieve greater operational efficiency, achieve a better balance of spending between our program and corporate support areas. Over the planning period, Corporate Management and Direction faces six specific challenges.
1. Addressing increasing funding pressures while at the same time ensuring the delivery of programs, services, and innovation commitments
This area will be a major priority for the CCRA in 2003-2004. While we are putting in place measures to address the current funding pressures, and continue to work on horizontal reviews to identify savings for re-investment in our core compliance operations and our innovation agenda, we will explore with the Treasury Board Secretariat the potential for developing a funding framework that will enable greater resource stability in the face of mounting fiscal pressures and workload volumes.
2. Strengthening financial and asset management by modernizing our systems and approaches
Over the planning period, we will implement a series of initiatives to address this challenge, including Phase II of the Financial Information Strategy and Activity-Based Costing. We will also implement a system to provide information on the timeliness of the deposit of customs, GST/HST, and excise duties and tax receipts, to allow us to demonstrate how well we are meeting the 24-hour deposit standard.
3. Making optimal use of our new flexibilities and authorities in the areas of real property and administration to achieve the potential created with agency status
Guided by the Real Property Business Model, the CCRA will propose a new partnership with Public Works and Government Services Canada
(PWGSC) in the first quarter of 2003-2004, to put in place a marketbased reimbursement regime for managing the agency’s real property portfolio. This would involve a Memorandum of Understanding and a Real Property Service Agreement with PWGSC, with proposed funding to be transferred to the CCRA from PWGSC in April, 2003.
4. Adopting the latest developments in information technology to provide leading-edge electronic service delivery to our clients
The agency’s IT Strategic Framework for 2003-2006 shown in the following exhibit, will ensure that the IT initiatives identified throughout this Summary of the Corporate Business Plan supports the agency’s strategic goals as effectively and efficiently as possible. The Framework has four components that together support our objective to improve service to Canadians and businesses. The four quadrants—Business Transformation Agenda, Practices and Methods, Program Branches and Regions, and External Partners and Relationships, represent the major elements that support the enabling technology the agency needs to deliver the integrated and trusted services required by clients.
 |
5. Responding effectively to human resources challenges, particularly in the area of workforce demographics and the exercise of our authority in labour negotiations
The performance of our business services and operations depends heavily on our having in place a strong human resources infrastructure. Over the planning period, we will ensure the appropriate recruitment and retention strategies are in place to meet current and future workforce requirements. This will include taking action to achieve representation in our workforce commensurate with the labour market availability of women in professional groups, and reaching a 2.5% national hiring goal for Aboriginal peoples. We will also focus on establishing a work environment that is more conducive to the use of both English and French, and ensuring that managers and employees are fully aware of their linguistic rights and responsibilities in the workplace. Another priority will be ensuring that the impact of our collective bargaining strategies on salaries and benefits is identified and well understood. Unions will continue to be consulted and informed on all key issues affecting their membership on a regular basis at all levels.
6. Meeting Canadians’ expectations for transparency by providing quality, accurate, and timely information while protecting our clients’ information by treating it with the confidentiality it requires under legislation
Progress in this area builds public confidence in our organization and promotes voluntary compliance. Over the planning period, we will further strengthen our performance reporting to Canadians achieved in our last Annual Report , with higher-quality performance information resulting from the implementation of our Balanced Scorecard. We will also implement a modern IT infrastructure solution to handle the increasing volume of access to information and privacy requests. We will work to maintain a “B” grade from the Information Commissioner, which represents over 90% of requests processed within legislated timeframes.
The following exhibit describes the anticipated results and success criteria we will be using for the planning period that are critical to achieving our expected outcome for Corporate Management and Direction.
| Expected Outcome – Performance of our business services and operation is maximized through modern and innovative management approaches | |
|---|---|
| Anticipated Results | Success Criteria |
| Canadians’ desire for transparency in public administration is addressed while protecting the confidentiality of client information | Continued public recognition as a trusted organization for electronic information channels
We will meet our internal standard of maintaining a ratio of 10% or less of well founded complaints (as assessed by the Information and Privacy Commissioners) against Access to Information Act and Privacy Act requests received for the fiscal year Sustained performance of at least 90% compliance with the statutory time requirements of the Access to Information Act and Privacy Act Continued positive assessment from the Auditor General on reporting our performance in the Annual Report The agency’s Summary of the Corporate Business Plan and Annual Report are made available electronically to Canadians within 30 days following their tabling in Parliament |
| Sound financial and treasury management | The Board of Management is satisfied with the accuracy and relevance of the CCRA’s quarterly budgets
Deposit 98% of all revenues received within 24 hours of receipt A monitoring and control framework to enhance management assurance on the integrity of revenue reporting will be developed by August 31, 2003, and prompt action will be taken to correct issues affecting revenue reporting as they arise Continued funding of the Asset Management Plan and Investment Plan at no less than 7% of CCRA’s gross budget Service standards relating to financial management are established by 2004 and performance is monitored against these standards thereafter |
| Operational excellence in the provision of internal services and support | Finance and Administration:
Public Affairs:
Human Resources:
Legal Services
|
| Knowledgeable and skilled workforce is in the right place at the right time | Medium and long-range internal workforce demographic analysis result in appropriate recruitment targets and strategies being set by April 2004 and reflected in annual HR plans
100% of eligible employees have individual learning plans 90% of employees with performance expectations are assessed as meeting or exceeding their expectations FTE utilization reflects CCRA plan |
- Date modified:
- 2014-07-03