Schedule B – Other Items of Interest
This schedule contains detailed action plans and covers sustainable development and the benefit programs and benefit-related services delivered by the Canada Revenue Agency (CRA).
Detailed Tax Debt Management Action Plans
Tracking of actions to address the recommendations of the Public Accounts Committee (PAC) and the Office of the Auditor General of Canada (OAG) regarding the collection of tax debts by the CRA.
Risk Management
The CRA’s strategy to improve the risk management of its collections program will address the OAG ’s recommendation (8.52) that:
“The Canada Revenue Agency should establish a more comprehensive automated risk-scoring system for tax debts, update the risk scores on an ongoing basis, and use the risk scores to prioritize workload throughout the collections process.”
PAC Reference #2
Specific Commitment(s) and Deliverables
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1. Establish processes to use new Risk Assessment Tools, build Risk Models and Scores, and implement.
- Risk models will be built in 2006-2007 and are currently scheduled for release over 2007-2008 for testing.
- Fully operational risk scores will be available for individual income tax accounts by March 2009.
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Target date of Fiscal Year 2009/10
Release 2.1 - October 2009
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Piloted a model that predicts the collections yield of a non-filer population. Results were very positive.
A decision was made in 2007-2008 to spread implementation of IRC between April and October 2009.
- Open business rules in Integrated Revenue Collections (IRC) for the Individual Taxpayer (T1) Accounts Receivable Risk Management decision-making business processes
- 100% of the Individual Taxpayer (T1) population in IRC
- A taxpayer folder that includes debtor history to assist in determining the next appropriate action
- Launched initial data mining models to identify the likeliness of the taxpayer paying a debt voluntarily within the first 90 days and the potential value of an unfiled return
Release 2.1 – October 2009 includes:
- Additional data mining models are being prepared for deployment as part of IRC Release 2.1
- As a result of these releases, the IRC platform will be risk scoring all accounts receivable using data mining models
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2. Fully operational risk scores are scheduled for business programs by 2011.
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Funding secured for 2009-2010 for planning phase
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File Management
The CRA’s strategy to improve the file management of its collections program will address the OAG ’s recommendation (8.65) that:
“The Canada Revenue Agency should minimize the number of collectors who work on each account, record their actions in a more systematic way, and improve the case management tools they have at their disposal.”
Specific Commitment(s) and Deliverables
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1. Improved file management capacity is currently scheduled for March 2009 for individual income tax collections and compliance.
- Integrated Taxpayer View Workbench
- Integrated Compliance Platform
- Workload Management Component
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Target date of December 2009
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As stated in previous updates, the project will only be implementing a portion of File Management in Release 2.1.
The T1 Taxpayer View Mainframe Macro Application (MMA) prototype was deployed to the Accounts Receivable T1 National Pool sites. This prototype led to the development of a new integrated view workbench MMA - the Accounts Receivable Platform (ARP). This enhanced prototype is currently in testing.
The Non-filer/Non-registrant Taxpayer View is currently in the development phase and will be deployed to all tax services offices (TSOs).
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2. Business programs are currently scheduled to use the same components for improvements to file and workload management in 2011.
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Funding secured for 2009-2010 for planning phase
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Performance Reporting
The CRA’s strategy to improve the performance reporting of its collections program will address the OAG ’s recommendation (8.41) that:
“The Canada Revenue Agency should significantly improve its management information to make it complete and comprehensive. It should develop reliable techniques and information sources to determine on a regular basis the results of its collection efforts and use that information to guide its decision-making for each of its major collection modes and actions.”
Specific Commitment(s) and Deliverables
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1. Improved performance reporting tools for individual income tax programs will be available beginning late in 2007, with fully operational reporting at the national, regional, local office, and individual officer levels scheduled for individual income tax programs by March 2009.
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Target date of April 2009
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- Enhanced data accessibility provided through an updated version of All Revenues Table that was re-released into production as of June 2008. The work continues to enhance data access and inventory management reporting for program managers.
- Improved operational and corporate reporting, with increased access to information and flexibility, for T1 (individuals).
- Three different data marts have been built to support data analysis, research, and performance reporting capabilities.
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2. Performance reporting tools are currently scheduled to be progressively implemented throughout all major business revenue lines by 2011.
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Funding secured for 2009-2010 for planning phase
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3. The CRA will collect information on collector actions through continued enhancement of its performance measurement systems by way of the Integrated Revenue Collections (IRC) project, which is scheduled to have its first major phase implemented by March 2009.
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Target date of April 2009
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- A decision was made in 2007-2008 to spread implementation of IRC between April and October 2009
- Progress continues to be made on improving performance information on the results of actions of individual collectors. Testing completed for implementation of the Taxpayer Folder concept which will store front-end automated collections actions in addition to the taxpayers actions.
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Debt Management Research
The CRA’s strategy to improve its debt management research will address the OAG ’s recommendation (8.28) that:
“The Canada Revenue Agency should identify and collect the data it needs to analyze the makeup of its tax debt and to develop better collection strategies.”
(considering a variety of factors including fluctuations in the economic cycle)
PAC Reference #4
Specific Commitment(s) and Deliverables
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Initial research model (to better understand the makeup of tax debt and the profile of debtors) is currently scheduled to be developed over 2006-2007 for individual income tax programs
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- An Individual Tax Debtor Research Model has been completed and a number of related research initiatives have been completed or are in progress.
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Business program research model is currently scheduled to be developed in 2007, for implementation early in 2008
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- A Corporation Income Tax Debt research model has been completed and a number of related research initiatives are in progress.
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Build enhanced analytical capacity using IRC data-analysis enhancements, currently scheduled for 2009 for individual income tax accounts
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- The data infrastructure is supporting the research and analysis to increase the capacity for debt management research using data already available in the CRA.
- Privacy Impact Assessment was prepared to address privacy issues relative to access to data for analytic and research purposes.
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Build enhanced analytical capacity using IRC data-analysis enhancements by 2011 for business programs.
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Deferred until funding source is secured
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5. Research Into Economic indicators
Develop research approach and conduct study
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Completed literature reviews of external indicators as component of research studies undertaken in 2008-2009.
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Outstanding 1994 OAG Recommendations
PAC Recommendation #1:
“That the Canada Revenue Agency develop a detailed action plan that includes timelines and performance indicators for the implementation of the outstanding recommendations contained in chapter 29 of the Auditor General’s 1994 Report and submit that action plan to the Standing Committee on Public Accounts no later than 31 December 2006.”
NOTE:
- Two items involving risk-scoring and performance information have been included under Item 1.
- No further submissions to PAC will be made as our September 2006 report met the PAC requests.
Specific Commitment(s) and Deliverables
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1. An analysis of danger-of-loss scenarios is being conducted, and a final report will be produced by June 2007.
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2. Performance standards will be established at the collector level through a tailored addendum to the existing performance management products to be implemented for all collectors beginning September 1, 2007. These standards will include the nature and frequency of debtor contacts, time frames for resolving accounts, and the use of legal action and other methods to collect amounts outstanding.
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Work Assessment Checklist and tools have been implemented.
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3. In response to the OAG’s recommendation to monitor time spent by collection officers in both cash-generating and non-cash-generating activities, the CRA has already introduced more detailed time reporting on newly established speciality workflows.
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An internal order process has been developed and implemented to capture time spent on activities. The process is very detailed and includes all work activities handled by the field.
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4. The OAG reported that satisfactory progress had been made in respect of 4 additional items recommended in 1994:
- Large Debt Collections
- Ability To Pay Guidelines
- Tracking Results By Officer
- Annual Review Of Accounts
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Remaining PAC Recommendations
PAC Recommendation #5:
“That the Canada Revenue Agency report on progress on the implementation of this plan in its annual performance report, beginning with the year ending March 31, 2007.”
Specific Commitment(s) and Deliverables
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1. The Annual Report to Parliament will be modified to include this information.
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A progress update was included in the CRA Annual Report to Parliament for 2006-2007. The update focuses on the plan of action for implementing the Agency 2010 strategic vision through branch business transformation to strengthen core debt management business operations. Updates will be provided in the CRA Annual Report each year.
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Remaining OAG Recommendations
OAG Recommendation 8.65:
“The Canada Revenue Agency should minimize the number of collectors who work on each account, record their collection actions in a more systematic way, and improve the case management tools they have at their disposal.“
The CRA will undertake an initiative to identify file management inefficiencies and improve the effectiveness of collector actions on case inventories.
The CRA will build on process improvements it has made, such as the national collections call centre and national pools, to further improve its file management. More specifically, the Integrated Revenue Collections project will improve the case management tools available to perform all CRA collection activities.
Specific Commitment(s) and Deliverables
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1. A study of files managed by collectors will be conducted to validate the OAG observations and identify improvements to practices.
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The file reviews have been completed and initial findings on lower value and complexity accounts demonstrated that additional measures are needed to assure quality of work. This item has now been completed insofar as delivering on the management response to this 2006 observation.
Accounts Receivable Division implemented two tools to improve the quality of work done by collection officers. The first is the Work Assessment Checklist, which is a joint Union/Management initiative, to be used by the team leader to enhance performance management. The second is the roll-out of an On-Site Quality Assurance Review process (OSQAR). The goal is to review the work done at the TSO level, identify negative trends and training needs, and address findings in a timely manner. Both programs were implemented in 2007-2008.
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Sustainable Development
We realized additional efficiencies and further reduced the environmental impacts of our operations during 2008-2009. By communicating and leveraging technology, we reduced office paper use by 5.9% or 336 sheets per employee from 2007-2008. This means that each CRA employee used an average of 5,385 sheets of office paper to carry out their job (see Figure 17). We expanded our No Waste program to include five additional CRA facilities. As a result, 83% of our employees have access to solid waste recycling through the No Waste program. We augmented the proportion of our fleet vehicles that are considered green (hybrids and alternative fuel vehicles) to 42.6%—compared to 38.5% in 2007-2008—and introduced a national environmental management program to expand energy conservation efforts within the CRA.
Figure 17 Sheets of Paper Purchased per CRA Employee
CRA senior management continued to demonstrate strong support for our Sustainable Development (SD) Program. Within the Executive Cadre, 97% included SD commitments in their performance agreements. Through the Sustainable Development Innovation Fund, we provided funding and monitored implementation of five new employee-driven SD projects. We also assessed the overall performance of the fund, and we will use best practices in promoting the expansion of successful projects within the CRA.
For 2009-2010, some of the key objectives of the SD Program are to complete a Greenhouse Gas emissions baseline for CRA business travel; implement energy conservation initiatives; and continue strategic integration of SD principles in our operations and program delivery. We will also position our SD Program to respond to requirements of the Federal Sustainable Development Act and the resulting federal sustainable development strategy.
For more information on our Sustainable Development performance, please go to:
www.cra.gc.ca/sds
Benefit Programs and Benefit-Related Services Delivered by the CRA
Six Federal Benefit Programs
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Children’s Special Allowances
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Goods and services tax / harmonized sales tax credit
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Working income tax benefit advance payments
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[Footnote 1] On behalf of Human Resources and Skills Development Canada
20 Ongoing Benefit Programs for Provinces and Territories
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British Columbia – BC Family Bonus
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Alberta Family Employment Tax Credit
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New Brunswick Child Tax Benefit
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New Brunswick Working Income Supplement
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Newfoundland and Labrador Harmonized Sales Tax Credit
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British Columbia – BC Earned Income Benefit
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Saskatchewan Child Benefit
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Northwest Territories Child Benefit
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Northwest Territories – Territorial Worker’s Supplement
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Nova Scotia Child Benefit
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Nunavut – Territorial Worker’s Supplement
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Newfoundland and Labrador Child Benefit
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Newfoundland and Labrador Seniors’ Benefit
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Saskatchewan Low-Income Tax Credit
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Newfoundland and Labrador – Mother Baby Nutrition Supplement
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British Columbia Low Income Climate Action Tax Credit
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Ontario Senior Homeowners’ Property Tax Grant
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Nine One-Time Payment Programs
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Relief for Heating Expenses (federal)
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British Columbia – BC Energy Rebate
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Alberta Energy Tax Refund
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Ontario Taxpayer Dividend
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Nova Scotia Taxpayer Refund
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Energy Cost Benefit (federal)
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Alberta 2005 Resource Rebate
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Ontario Home Electricity Relief
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British Columbia Climate Action Dividend
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46 Data Exchange and Data Transfer Services
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Twenty-three income verification data exchanges with provinces to support programs
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Eleven NCB Supplement data exchanges with provinces and territories to facilitate calculation of social assistance
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Four data transfers with provinces to support top-ups for CRA-administered child benefit programs
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Two data transfers of income and child information to support administration of the Ontario Child Care Supplement and Quebec Family Allowance programs
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Two data exchanges and transfers to support the new Nova Scotia Pharmacare program and to assist the ministère du Revenu du Québec in the administration of the Quebec Income Tax Act
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Four data exchanges and data transfers to support federal administration of EI Family Supplement, Canada Learning Bond, Additional Canada Education Savings Grant, and Guaranteed Income Supplement
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- Date modified:
- 2009-11-05
