Summary of the Corporate Business Plan 2015-2016 to 2017-2018
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Summary of the Corporate Business Plan 2015-2016 to 2017-2018
Assessment of returns and payment processing
The CRA's goal is to make it easier and more convenient for Canadians and Canadian businesses to comply with their tax obligations. The enquiries services described in the previous chapter help taxpayers determine their tax obligations. This chapter describes the Agency's program for assessing individual and business returns and processing payments, which includes interactive e-services like My Account. The CRA processes and assesses returns and payments as quickly and accurately as possible to provide taxpayers with certainty about the status of their tax affairs.
The CRA's wide range of e-services has become the preferred service channel for many taxpayers: over 80% of individuals file their tax return online. The CRA's secure portals—My Account for individuals, My Business Account for businesses, and Represent a Client for tax intermediaries—allow taxpayers and their representatives to check information and carry out a wide range of transactions at their convenience. E-services help the CRA to issue refunds faster, and reduce the overall cost of tax administration through lower processing and mailing costs.
The CRA is making information and e-services accessible from mobile devices. The Agency's first mobile application for businesses, released in 2014, lets users create reminders for instalment payments, returns, and remittances to better manage their tax affairs. In 2015, the CRA will release a mobile application allowing individuals to access basic tax information such as notices of assessment. Mobile apps are the next step in the Agency's drive to find better ways to deliver convenient and cost-effective tax and benefit services to Canadians.
The CRA does not compromise the security of taxpayer information in the delivery of e-services. Innovative approaches help the Agency meet both security and convenience expectations. For example, the CRA is simplifying registration for My Account by introducing a two-tier authentication process. The first tier will allow users secure, limited access to services and information in My Account, including refund status, tax free savings account and RRSP limits, and an abbreviated version of the electronic T1 notice of assessment. The second tier will grant secure access to all of the My Account services and electronic delivery of the detailed T1 notice of assessment, but will require users to go through the full My Account registration process.
The CRA is introducing a new online mail service in 2015 to reduce the volume of correspondence delivered by conventional mail. Taxpayers who opt in for the new Manage Online Mail service will be notified by email that they have new correspondence to view in My Account. This convenient e-delivery service will ensure taxpayer information is secure and protected.
The CRA will continue to work with commercial tax software developers to improve tax-filing software. In 2015, the Agency will launch a tax data delivery service through which authorized tax representatives using CRA-certified software products (EFILE) with the tax data delivery option will be able to populate parts of an income tax and benefit return with information from the CRA. The service will provide such information as T4 and universal child care benefit statements. Over time, this option will be expanded to include individuals using NETFILE-certified software products. The automated population of tax forms using data available from the CRA will make it easier for taxpayers to file and will increase accuracy by reducing errors made during manual data entry.
Over 80% of individuals filed their tax return online.
Individual returns and payment processing
The CRA assesses more than 28 million individual returns annually. Assessment includes determining the status of an individual's tax obligations, finding and fixing errors, informing taxpayers of taxes owing, and paying refunds. Electronic filing accelerates the processing of returns and payments and is also less costly than traditional paper options. The CRA's error checking typically finds more than $1 billion in non-compliance, and the Agency identifies more than $100 million in beneficial adjustments annually.
The CRA assesses more than 28 million individual returns annually.
Planning highlights
The CRA will:
- Launch a mobile app enabling individual taxpayers to view an abbreviated notice of assessment, RRSP deduction limit, and tax-free savings account contribution room in 2015.
- Launch e-delivery of T1 notices of assessment in 2015, with the goal of making 80% of correspondence available online within two years.
- Accept additional prior-year returns through EFILE and NETFILE by February 2016.
- Expand the Tax Data Delivery service to individuals using NETFILE-certified software products by February 2016.
- Continue to move forward on the T1 Systems Redesign project to modernize the CRA personal income tax assessing and accounting systems for completion in 2019-2020. This initiative will make sure there is a strong, flexible, and resilient foundation for the T1 Program. Modernized systems will also assist with the introduction of future service improvements.
- Encourage use of direct deposit to ensure timely receipt of refunds and benefits.
Business returns and payment processing
Businesses and their tax representatives are extensive users of the CRA's e-services: the vast majority of corporation income tax returns and GST/HST returns are filed electronically. Also, more than 1.9 million businesses are enrolled in My Business Account, the Agency's online portal for business. E-services provide an opportunity to interact electronically with the CRA on various business accounts and are convenient, easy to use, fast, and secure.
The CRA also maintains Canada's Business Number System. A business number is a unique client identifier given to a business to help simplify its dealings with federal, provincial/territorial, aboriginal, and municipal governments. The system is based on the idea of one business, one number, and it is a key enabler of red tape reduction.
More than 1.9 million businesses are enrolled in My Business Account.
Planning highlights
The CRA will:
- Improve the online Business Registration service to streamline the process and make it easier for businesses to register by April 2015.
- Improve the systems supporting the Business Number Program to enhance integrity by 2018-2019.
- Include a payment option within GST NETFILE for business taxpayers by October 2015.
- Expand the Submit Documents service to the GST/HST Returns and Rebates program, the Canada Pension Plan and Employment Insurance Rulings program and the T2 Audit programs, by October 2016.
- In collaboration with Industry Canada, develop a business number strategic adoption plan to promote using the Business Number System to strengthen federal programs and provincial and territorial partnerships.
Budgetary financial information
| 2015-2016 Main Estimates | 2015-2016 planned spendingFootnote 1 | 2016-2017 planned spendingFootnote 1 | 2017-2018 planned spendingFootnote 1 | |
|---|---|---|---|---|
| Program | ||||
| Assessment of returns and payment processingFootnote 2 | 614,590,330 | 614,590,330 | 605,246,609 | 596,586,054 |
| Sub-programs | ||||
| Individual returns and payment processingFootnote 3 | - | 320,303,789 | 316,787,161 | 308,773,907 |
| Business returns and payment processing | - | 294,286,541 | 288,459,448 | 287,812,147 |
Human resources
| 2015-2016 | 2016-2017 | 2017-2018 | |
|---|---|---|---|
| Program | |||
| Assessment of returns and payment processing | 6,415 | 6,192 | 6,148 |
| Sub-programs | |||
| Individual returns and payment processing | 4,344 | 4,265 | 4,226 |
| Business returns and payment processing | 2,071 | 1,927 | 1,922 |
Performance measurements
The CRA performance measurements for assessment of returns and payment processing are set out on page 95. These measurements indicate the Agency:
- Provides timely and accurate assessment notices and payment processing to individuals and businesses.
- Meets its service commitments to Canadians 100% of the time. The CRA has 47 service standards. For the activities described in this chapter, 9 of the service standards apply.
- Encourages more individuals to file electronically. The CRA aims to increase the rate of e-filing because it provides easier access and faster turnaround for taxpayers, at the same time reducing the risk of error.
- Employs accurate risk assessment and validation techniques. Risk assessment helps the Agency to select files where there is the greatest likelihood of non-compliance. This contributes to effective use of Agency resources, targeted compliance activities, and reduces the burden on compliant taxpayers.
Footnotes
- Footnote 1
-
Planned spending refers to those amounts for which a Treasury Board submission approval has been received by no later than February 1, 2015. This cut–off date differs from the Main Estimates process. While in any given year planned spending may include amounts incremental to planned expenditure levels presented in the Main Estimates, this year it does not.
- Footnote 2
-
The decrease in planned spending from 2015-2016 to 2017-2018 in the assessment of returns and payments processing program results primarily from adjustments in funding associated with the upgrade of the individual income tax processing system and other major investment projects, and the conclusion of funding received for special projects.
- Footnote 3
-
The decrease in planned spending from 2015-2016 to 2017-2018 in the individual returns and payments processing program results primarily from adjustments in funding associated with the upgrade of the individual income tax processing system and the conclusion of funding received for special projects.
- Date modified:
- 2015-04-01