Executive Summary

Provinces, territories and other government departments rely on the CRA as a key service provider

The CRA delivers tax and benefit programs and services on behalf of provinces, territories, First Nations, and other federal departments and agencies. We administer 17 child benefit and credit programs for the provinces, many of which started under the joint federal, provincial and territorial National Child Benefit (NCB) initiative. Our approach to administering these programs is to reduce duplication and increase efficiency, as well as to simplify tax and benefit administration for provincial governments. One example of this approach is the electronic data exchange service, which makes it easier for clients to receive benefits from their provincial programs. In 2004-2005, seven provincial programs joined our income verification data exchange service, bringing this total to 13 programs.

In addition, we supported the Department of Finance Canada in its negotiations with First Nations on establishing new tax administration agreements. These agreements included the collection of a First Nations GST with nine Yukon First Nations, a First Nations Personal Income Tax Agreement with the Kluane First Nation, and an agreement to allow the CRA to collect certain First Nations taxes with the Whitecap Dakota First Nation.

One of the objectives of becoming an agency was to improve our capacity to work with other levels of government. We anticipate signing a memorandum of understanding in the near future with the province of Ontario on the implementation of a single corporate tax administration.

Our strengthened accountability regime includes not only an annual report that is tabled in Parliament, but also annual reports submitted to provinces and territories on the services we administer on their behalf.

Date modified:

2005-10-26