Tax Services

Tax Services is the largest of the CRA's business lines. It is responsible for administering, assessing and collecting more than $300 billion in taxes and excise taxes, including more than $42 billion in taxes on behalf of Canada's provinces (except Quebec), territorial governments and First Nations. Our clients include almost 30 million individuals, businesses, trusts and other organizations.

The Canadian tax system is based on self-assessment and voluntary compliance. Tax Services programs are aimed at promoting compliance with Canada's tax laws and ensuring that clients pay their required taxes. Compliance is highly sensitive to many factors, such as perception of government, general values held by society, the economy, the structure of the tax system and legislation. Many of these factors are beyond our control.

Tax Services programs help to ensure that CRA's clients receive accurate information and assistance in understanding their rights and obligations under the Canadian tax system. Tax Services activities include registering businesses, charities and deferred profit-sharing plans; obtaining and processing returns and payments; issuing rulings on and interpretations of tax law; collecting arrears; performing reviews and audits; and identifying and prosecuting cases of wilful non-compliance. We also administer tax incentives, such as the Scientific Research and Experimental Development (SR&ED) tax credit, film tax credits and other targeted credits, as well as deductions that generate refunds or otherwise reduce the amount of tax that would be owed. In addition, the CRA provides expert technical assistance to foreign revenue administrations.

The CRA is not alone in promoting tax compliance. A strong legislative foundation requires employers to withhold and remit deductions at source, obliges businesses to collect and remit GST/HST on our behalf, and specifies sanctions and penalties for non-compliance. Financial institutions offer convenient, accessible services that enable individuals and businesses to receive and deposit refunds and remit tax payments on time.

Equally important are law enforcement agencies, such as the Royal Canadian Mounted Police (RCMP) and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). We work closely with these agencies when conducting investigations into suspected tax evasion related to money laundering or terrorist financing. We also work with international tax administrations and organizations, such as the Pacific Association of Tax Administrators (PATA), the Organisation for Economic Co-operation and Development (OECD) and the Inter-American Center of Tax Administrations (CIAT).

Date modified:

2005-10-26