Notes to the Financial Statements – Administered Activities

1. Authority and purpose

The Canada Customs and Revenue Agency (the "Agency") was established effective November 1, 1999, under the Canada Customs and Revenue Agency Act. The Agency was established to support the evolution of tax administration and customs services in Canada.

The Agency is a departmental corporation named in Schedule II of the Financial Administration Act and reports to Parliament through the Minister of National Revenue. The Agency's expenses are funded by the Government of Canada through appropriations.

The Agency's mandate is to provide support, advice and services when:

(a) supporting the administration and enforcement of the program legislation;

(b) implementing agreements between the Government of Canada or the Agency and the government of a province or other public body performing a function of government in Canada to carry out an activity or administer a tax or program;

(c) implementing agreements or arrangements between the Agency and departments or agencies of the Government of Canada to carry out an activity or administer a program; and

(d) implementing agreements between the Government of Canada and Aboriginal governments to administer a tax.

In delivering its mandate, the Agency:

• collects revenues and administers tax and other legislation for the Federal Government and for certain provinces and territories and others, including First Nations;
• provides border services and administers legislation governing international trade and travel; and
• delivers certain federal and provincial governments' social and economic benefit programs to Canadians, through the tax system.

The Agency administers, on behalf of others, income taxes and sales taxes, Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, as well as amounts collected for other groups or organizations. The Agency is responsible for the administration and enforcement of the following acts and certain other acts for which the Minister of National Revenue has a mandated role: Air Travellers Security Charge Act, Canada Customs and Revenue Agency Act, Children's Special Allowances Act, Customs Act, Customs Tariff, Department of National Revenue Act, Excise Act, Excise Tax Act (includes GST/HST), Income Tax Act, and others.

The Minister of National Revenue is responsible for the Agency and remains accountable to Parliament for the administration and the enforcement of the various tax programs' legislation.

In the province of Quebec, the Ministère du Revenu du Québec (MRQ) acts as an agent of the Agency. GST revenues collected in that province are therefore included in these financial statements. The Agency monitors cash transfers made by MRQ, reports GST revenues to the Federal Government and authorizes refunds and transfers funds out of the Consolidated Revenue Fund to MRQ for the purpose of issuing refunds.

Date modified:

2003-10-29