Reporting Compliance (PA4)

Program Overview

The Reporting Compliance program activity addresses the accuracy and completeness with which taxpayers report their tax liability.

Major functions include examinations, reviews, audits, and investigations to ensure compliance with federal, provincial, and territorial income tax and GST/HST laws.

Program Strategy

When taxpayers do not comply with Canada’s tax laws, the CRA’s strategy is to identify and address the most serious reporting non-compliance issues and cases, take appropriate action, and deter future non-compliance.

As a service to provincial and territorial governments, we are focusing on programs that address interprovincial tax avoidance and provincial income allocation.

Over the planning period, we will:

• harmonize all audit activities for federal and Ontario corporate income tax accounts under the Corporate Tax Administration for Ontario initiative; and
• enhance the administration of the Scientific Research and Experimental Development Program (SR&ED) in an effort to better promote innovation.

Aggressive tax planning, the underground economy, GST/HST compliance, non-filers/non-registrants, and collections are areas that require our focus. In addressing non-compliance, we will review the risk elements relating to our current compliance priorities, and identify emerging compliance risks.

Over the planning period, we will:

• focus on aggressive tax planning, such as the abuse and misuse of international transactions and tax havens;
• combat the underground economy and address high-risk GST/HST compliance issues; and
• implement a compliance communications strategy to inform taxpayers of their obligations and the consequences of not meeting them.

Date modified:

2008-03-31