Strengthening Service to Make Compliance Easier

Introduction

The vast majority of Canadians want to comply with tax and benefit laws. We believe that we must make it easier for them by providing helpful and accurate information and other quality services through fast and efficient delivery channels. Our service enhancements build on the fact that Canada boasts one of the highest proportions of internet users in the world and that Canadians continue to integrate technology into their interactions with service providers. We expect that the public’s service needs will be increasingly met through our Web-based channels such as My Account, My Business Account, Quick Access, and Represent a Client.

We are also engaged in business partnerships that harmonize federal and provincial tax regimes and simplify benefit programs. Harmonization permits us to lever our advanced tax administration infrastructure to eliminate administrative duplication and increase the delivery of single window services that make it easier for all taxpayers and benefit recipients to comply with their obligations.

Over the planning period, we put forth the following initiatives to address our challenges and opportunities for strengthening service to make compliance easier.

Enhance our electronic services

Canadians are using multiple channels (telephone, in person, in writing, and the Internet) to satisfy their requirements. We will enhance our ability to comprehensively meet the public’s service and information needs and to encourage taxpayers and their representatives to migrate to more cost-effective electronic service channels. This will also include security enhancements and further specialization of Web site content.

We will improve our My Account, My Business Account, and Represent a Client services to provide faster and easier delivery of secure individual and business tax information and services.

We will deliver products that enhance service, like the Payroll Deductions Online Calculator based on information supplied by the employer. The CRA will improve its usability by focusing on new and small employers, simplifying the language, and making the product more intuitive.

With enhancements to My Business Account, filers of the Tax-Free Savings Account annual information returns will receive notification of those individual records that need correction. Additional enhancements will provide a means for businesses to send their books and records electronically and securely when being audited, and provide a calculator for businesses to determine instalments for payments of corporation income tax and GST/HST.

Promote the take-up of electronic filing and electronic payments

Although we offer traditional forms of service, the most cost-effective way to improve the services we offer to Canadians is through our electronic channels.

We offer services that enable individuals to file their income tax returns electronically using one of three options: TELEFILE, EFILE, or NETFILE. We also provide similar services for businesses and enable them to register, make payments, or effect certain financial transactions on their accounts. Recent legislative changes require more corporations, businesses, and other institutions to file electronically. We will need to communicate these new requirements and monitor compliance to ensure penalties are applied when appropriate. We will continue to seek opportunities to use the Business Number as the common identifier for business transactions with governments in Canada.

Further tax harmonization

The Government of Canada and the provinces of Ontario and British Columbia have agreed to implement the harmonized sales tax (HST) on July 1, 2010. This will replace existing provincial sales taxes and the federal goods and services tax. Through tax harmonization, we lever our tax administration infrastructure to eliminate administrative duplication and enable enhanced delivery of single-window services.

This is a major development in Canadian tax administration that builds on the success of harmonizing sales taxes in New Brunswick, Nova Scotia, and Newfoundland and Labrador, and the more recent transfer of Ontario’s corporate tax administration to the CRA.

We will need to change our systems to accommodate new requirements and ensure taxpayers are provided with information necessary to comply with the new law. In addition, a number of compliance programs will be modified to reflect the potential for increased risks associated with collection of the new revenues. With the March 3, 2010 signing of Human Resources Agreements with the two provinces, we will plan for the successful transition of Ontario and British Columbia employees to the CRA, beginning with the arrival of the first group of employees in November, 2010.

Date modified:

2010-05-06