Tax Services

Expected Outcome

Performance Summary – We have met this Anticipated Result, as demonstrated by the following performance against expectations:

• met or exceeded our processing time service standards and internal performance targets for nearly all major tax lines, while maintaining accuracy
• continued growth in electronic filing for T1 individual returns and expanded electronic filing options for other types of returns

We met or exceeded our processing time service standards and internal performance targets for nearly all major tax lines. Based on sampling, we exceeded our service standard for processing T1 individual returns. It took less than four weeks on average to process 12.7 million paper income tax returns and less than two weeks on average to process 9.7 million electronic T1 returns. Moreover, all T1 returns filed on time (by April 30) were processed by mid-June, thereby allowing sufficient time to update account information required for the new benefit year. Based on sampling, a high degree of processing accuracy was maintained. Our Annual Survey indicates that 88% of taxpayers were either somewhat or very satisfied with the time it took to receive their Notice of Assessment or refund, an increase from 85% the previous year.

Our processing time for T2 corporate income tax returns has improved substantially and met our service standard
(Fig. 2-1). The processing time for GST/HST returns mostly met our service standard, and the processing times for 2001 T4 and T5 information returns exceeded our internal performance targets. Although we dramatically improved our processing time for T3 trust returns (77% within 4 months from 46% the previous year), more work is needed to achieve our 95% target. We have continued development of our Automated Trust System (T3) and implemented automated notices of reassessment. As a result of the Voluntary Sector Initiative, a streamlined and simpler T3010 charity return was introduced. We processed all 123,547 charity returns by the fiscal year-end in order to clear the backlog from the previous year.

An important part of our processing strategy is to continue to improve electronic filing take-up rates and expand electronic filing options. Not only are we able to process electronic returns in about half the time it takes to process paper returns, the use of electronic returns also avoids many of the costs and errors associated with paper processing.

2-1 T2 Return Processing Performance Against Service Standard

The national T1 electronic filing participation rate was 43.4% (calculated on assessed returns), below the national target of 50%. Although this target was met or close to being met in most provinces, lower participation rates in other provinces played a major role in affecting national results. We are developing a strategy to target the marketing of our electronic filing options. One of our challenges will be to encourage over 3 million individuals and 2.8 million third-party preparers who filed computer-prepared returns on paper to begin filing electronically. We piloted electronic filing options for several other types of returns such as T2 corporate, T4 and GST/HST returns, and expanded T1 EFILE.

Date modified:

2003-10-29