Building Trust to Promote Compliance

Introduction

The CRA recognizes that, to maintain a sustainable tax and benefit system, we must avail ourselves of every opportunity to promote compliance with legal obligations. As the administrator of Canada’s tax and benefit system, we fulfil our role in promoting compliance in a number of ways. For example, we actively communicate with different segments of the public about the role of compliance in sustaining the tax system that supports their social services and public infrastructure.

We also ensure that the tools and information that the public needs to comply with its obligations are easily accessible and up-to-date. In addition, the CRA is committed to providing taxpayers and benefit recipients access to timely and impartial redress when they do not agree with CRA decisions or have complaints about service. We also encourage taxpayers to voluntarily come forward and correct previous errors and omissions without penalty or prosecution.

Over the planning period, we put forth the following initiatives to address our challenges and opportunities for building trust to promote compliance.

Strengthen outreach

Through outreach, we deliver the information and assistance taxpayers need to meet their obligations and get the benefits to which they may be entitled. To ensure that our outreach events reach the most appropriate audience, we select specific groups like seniors, new Canadians, persons with disabilities, small businesses, and charities, and provide tailored information that meets their needs.

To ensure a co-ordinated approach to outreach, with consistent messaging tailored to meet specific needs, we will develop an integrated CRA outreach strategy. This strategy will set the framework for all CRA outreach activities, including the guiding principles, objectives, initiatives, and evaluation criteria.

Specific initiatives include the identification of taxpayer sub-groups for focused messaging. We will also explore ways to improve voluntary compliance through an enhanced understanding of responsible citizenship. We will consider alternative delivery models and partner with other government departments, other levels of government and associations to expand the reach of our activities, using advanced technology like webinars to maximize our effectiveness.

Optimize service delivery channels

Providing timely and accessible information regarding obligations and entitlements is fundamental to a self-assessment tax system. Canadians are using various means (Internet, telephone, in person, and in writing) to satisfy their information needs. We want to encourage taxpayers and benefit recipients to migrate to the more affordable self-serve channels with agent assistance readily available when required.

We will expand our research and analysis to better understand clients’ information needs and expectations and explore best practices and emerging technology in the taxpayer services arena. Our enquiries and information services will develop more training and job aids for agents to help them respond more effectively to the increasing complexity of enquiries. It will also enable agents to answer taxpayer enquiries more effectively in an environment of ever-changing legislation. The telephone channel remains the most popular way for taxpayers to contact us. We will meet our increased performance targets for caller accessibility and our service standards for timeliness with existing resources.

Resolve taxpayer disputes and service complaints

The availability of redress is central to safeguarding taxpayers’ trust and confidence in the integrity of Canada’s tax regime. Our aim is to ensure that all taxpayers have access to timely and impartial redress.

We are creating the Appeals Division Database System (ADDS). Our objective is to improve our capacity to manage taxpayers’ files with a common issue. Because Appeals information will be coordinated within ADDS, our overall effectiveness in managing these files will be improved.

The CRA Service Complaints program provides taxpayers with a key point of contact within the CRA for service-related issues. If taxpayers are still unsatisfied after our efforts to address their complaint, they have recourse to a review by the Taxpayers’ Ombudsman.

Enhance the administration of our voluntary disclosures program

Our Voluntary Disclosures Program (VDP) promotes compliance with Canada’s tax laws by encouraging taxpayers to voluntarily come forward and correct previous omissions in their dealings with the CRA. Taxpayers who make a valid disclosure will have to pay outstanding taxes and interest without penalty or prosecution. The VDP is not intended as a vehicle for taxpayers to intentionally avoid their legal obligations under the acts we administer.

There has been a significant increase in the number of voluntary disclosures in the last three years. We will update our policies and procedures over the planning period to streamline our processes and we will improve training and monitoring to ensure consistent administration across the country.

Enhance our charities program

To promote compliance with income tax legislation and regulations for registered charities, we carry out extensive educational outreach initiatives.

These sessions, which are open to all registered charities, provide attendees with information on record keeping, receipting, tax planning arrangements, preparing for an audit, and sanctions. In addition, extensive information about the requirements for registration is available on our “Charities and Giving” Web pages. Registered charities can access a number of checklists and guidance documents to help them understand and manage the responsibilities of operating a charity.

One of the key priorities for the planning period is to improve our application and enquiries processes for registered charities and applicants for registered status. This will be achieved by implementing new service standards, by following through on the recommendations of the Small and Rural Charities Initiative, and by offering electronic service options such as webcasts and webinars.

Date modified:

2010-05-06