CRA Annual Report to Parliament 2008-2009 - Service Standards at the CRA – Overall Results

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Service Standards at the CRA – Overall Results

About external service standards

Our service standards regime is a vital and integral part of our planning, reporting, and performance management processes. Meeting our service standards demonstrates that we are responsive to the needs of taxpayers and benefit recipients. This helps establish credibility in our operations and contributes to increasing the level of confidence that Canadians can place in government.


External service standards publicly state the level of performance that citizens can reasonably expect to encounter from the CRA under normal circumstances.

Over the years, the number of our service standards has increased, from 31 in 1999-2000 to 47 in 2008-2009. Since a review of our service standards had not been undertaken for more than 10 years, we decided to conduct a global review of service standards at the CRA. The purpose of the review was to determine whether we are communicating, monitoring, and reporting on the right services, with the right targets, in a way that is meaningful to, and effective for, stakeholders. The review is ongoing, with the final results to be available in 2009-2010.

How we set targets

We set targets for our service standards that represent the percentage or degree of expected attainment of an established standard. Targets are based on operational realities, historical performance, complexity of the work, and Canadians’ expectations. Our standards and targets are reviewed annually and, where necessary, updated.


Taking into consideration historical performance and the expectations of those who use our services, we set standards that are:

  • challenging yet attainable with effort; and
  • affordable, and meaningful to service users.

Successes and challenges

One of the purposes of having published service standards is to provide us with performance information so we can make the necessary changes to improve our results. Over the past year, we have experienced many successes and faced several challenges in meeting these standards. The following are key examples of our successes and challenges.

As noted earlier in this report, during 2008-2009, we received and processed more than 27.1 million individual tax returns, which was an increase of more than 8% over the prior year. Despite this increase, we again met all of our individual income tax processing service standards, including processing electronic individual income tax returns in an average of 11 days. We place a great deal of emphasis on achieving these service standards because they are critical to maintaining Canadians’ confidence in our organization as a responsive and trusted service provider.

During the past number of years, we have consistently met our service standards for Video and Film Tax Credits – Refundable Claims despite many challenges, including a significant increase in the volume of claims we have received. Our continued success in meeting our targets for these standards is directly attributable to the efforts and expertise of our Film Services agents. These results also reflect the degree to which the many repeat film tax claimants are familiar with their obligations and motivated to help us achieve short turnaround times. In this way, we support Canadian businesses, thereby fostering voluntary compliance with Canada’s tax laws.

Although we met certain service standards related to registered plans, we once again experienced challenges with others during 2008-2009. We have worked hard to identify solutions that will result in performance improvements. For example, with respect to services for clients of Deferred Income Plans and Actuarial Valuation Reports, we are addressing these shortcomings by engaging in enhanced outreach and the provision of improved information. Much work remains, however, in addressing all of the issues related to our service standards related to registered plans. It is important that we improve our performance for this sector, which manages over one trillion dollars in sheltered income for Canadians.


“Understanding what service users want and expect is integral to the ability of service providers to find ways of meeting these expectations and thereby satisfy their users’ needs.”

Citizen’s First 5

We also experienced a decline in performance this past year in our service standard for processing a request to authorize or cancel a representative. This was largely due to the introduction of the Represent a client service, which enabled representatives to view benefit recipients’ personal information and make changes online. Since many benefit recipients prefer to have a representative handle their affairs, we are currently in the process of implementing improvements so that we can again meet our targets in 2009-2010.

As we discussed in the section entitled Taxpayer and Business Assistance, our results declined slightly this past year for both our service standards related to the provision of technical income tax interpretations and for issuing advance income tax rulings. The decline in performance over last year was principally the result of increased file complexity and the ongoing challenges of retaining experienced staff for these specialized workloads. It is important for us to resolve these performance shortfalls because ongoing weak performance in these areas could jeopardize our ability to foster voluntary compliance with Canada’s tax legislation. For this reason, we have developed a comprehensive approach to studying what has led to the deteriorating performance result. We expect the study and related analysis to be completed by the end of 2009-2010.

Lastly, we experienced a significant decline in performance in our key Appeals service standard—acknowledgement of a dispute within 30 days of receipt. During 2008-2009, we experienced a 17 percentage point decline in our performance compared to 2007-2008, achieving a result of 68% against our performance target of 85%. This service standard fosters trust in our redress regime, so it is important that we take steps to address this performance shortfall. Consequently, we have completed a review of our intake centres and are implementing several recommendations to improve the efficiency and effectiveness of our screening activities, including a temporary reallocation of resources during peak periods of dispute intake.

New service standards

In 2008-2009, we introduced two new standards in the Benefit Programs area for the accurate processing of requests to authorize or cancel a representative, with a target of 98%.


“The CRA is committed to developing, monitoring, and reporting on a full suite of service standards in areas of importance to taxpayers and benefit recipients.”

William V. Baker

Adjustments

There were a number of changes to the CRA’s existing slate of service standards in 2008-2009. These are included in the table below:

Service standard
Adjustment
Problem Resolution Program (PRP)
We adjusted the targets from 100% to 95%. After several years of monitoring and reporting, it was determined that this would be a more realistic yet challenging target.
Charities telephone service
This was modified to be more consistent with other telephone services.
Corporation income tax returns
The processing targets were combined and the standard improved (historical results are therefore not available for this standard).
Validation and control
The standard changed from 60 days to 45 days. The Benefit Programs area, in consultation with the tax centres, concluded that 45 days would be attainable.
Statements of interim payments (SIPS)
GST/HST SIPS have been added to the count of the standard for providing statements of interim payments to corporations on a monthly basis.
Processing GST/HST returns
The CRA changed the service standard for processing GST/HST returns from 21 days to 30 days. This change aligned the service standard with the legislative change that took effect on April 1, 2007, whereby the CRA now pays interest on refunds after 30 days.
GST/HST Rulings and Interpretations written enquiries
The target was raised from 75% to 80% based on past performance.

Deletion

The GST/HST Visitor Rebate Program ended effective April 1, 2007 thus eliminating the need for a service standard.

NOTE: Where service standards are expressed in terms of a number of days, they refer to calendar days, unless otherwise specified.

Taxpayer and Business Assistance

Service
Service standard
Current Target
2004-
2005
2005-
2006
2006-
2007
2007-
2008
2008-
2009
Rating
1. General enquiries – Telephone
Respond to calls in queue within 2 minutes
80%
81%
80%
82%
83%
82%
Met or exceeded target
2. Business enquiries – Telephone
Respond to calls in queue within 2 minutes
80%
81%
85%
81%
82%
87%
Met or exceeded target
3. Charities – Respond to telephone enquiries
Respond to calls in queue within 2 minutes
80%
N/A
N/A
N/A
86%
87%
Met or exceeded target
4. Advance income tax rulings to taxpayers
Within an average of 60 days
100%
62 days
84 days
94 days
101days
104 days
Target not met
5. Technical interpretations to taxpayers
Within an average of 90 days
100%
75 days
87 days
105 days
89 days
91 days
Target mostly met (at least 95% of target)
6. GST/HST Rulings and Interpretations – Written enquiries
Within 45 working days of receipt of request
80% [Footnote 1]
N/A
N/A
87%
89%
93%
Met or exceeded target
New or modified service standard
7. Applications to register pension plans
Complete review in 180 days
85%
89%
96%
97%
94%
92%
Met or exceeded target
8. Amendments to registered pension plans
9 months
80%
84%
89%
82%
77%
71%
Target not met
9. Termination of registered pension plans
1 year
85%
88%
90%
88%
82%
80%
Target not met
10. Retirement savings plans (applications to register, amend, or terminate)
Within 60 days
80%
97%
84%
85%
85%
87%
Met or exceeded target
11. Retirement income funds (applications to register, amend, or terminate)
Within 60 days
80%
95%
84%
91%
91%
94%
Met or exceeded target
12. Education savings plans (applications to register, amend, or terminate)
60 days
85%
93%
88%
85%
71%
93%
Met or exceeded target
13. Actuarial valuation reports
9 months
80%
81%
80%
36%
56%
63%
Target not met
14. Deferred income plans – Response to written enquiries
Within 60 days
80%
69%
75%
60%
38%
65%
Target not met
15. Deferred profit-sharing plans
Registration in 180 days
80%
85%
79%
99%
97%
100%
Met or exceeded target
16. Deferred profit-sharing plans
Amendments and terminations within 270 days
80%
82%
68%
89%
87%
88%
Met or exceeded target
[Footnote 1] Target was raised from 75% to 80% this year.

Assessment of Returns and Payment Processing

Service
Service standard
Current Target
2004-
2005
2005-
2006
2006-
2007
2007-
2008
2008-
2009
Rating
17. Responding to taxpayer- requested adjustments (T1)
8 weeks (average)
100%
6 weeks
6 weeks
7 weeks
7 weeks
7 weeks 2
Met or exceeded target
18. Responding to taxpayer- requested adjustments (T1) received via the Internet
2 weeks (average)
100%
N/A
N/A
N/A
2
weeks
2
weeks 2
Met or exceeded target
19. Providing statements of interim payments (SIPS) to T2 corporate income tax/GST/HST clients on a monthly basis [Footnote 1]
Mailed by the 18th of the month
95%
49%
99%
100%
80%
94%
Target mostly met (at least 95% of target)
20. Processing T1 individual income tax returns (paper)
4-6 weeks (average)
100%
3.6 weeks
3.6 weeks
3.9 weeks
4.1 weeks
4.0 weeks [Footnote 2]
Met or exceeded target
21. Processing T1 individual income tax returns (electronic)
2 weeks (average)
100%
1.9 weeks
1.9 weeks
1.6 weeks
1.7 weeks
1.6 weeks 2
Met or exceeded target
22. Processing T3 trust returns
Within 4 months
95%
97%
96%
96%
98%
97%
Met or exceeded target
23. Processing excise tax, excise duty, and air travellers security charge returns
Within 90 days
95%
N/A
N/A
98%
98%
99%
Met or exceeded target
24. Processing GST/HST returns
Within 21 days Within 30 days [Footnote 3]
95%
97%
98%
98%
n/a
97%
Met or exceeded target
New or modified service standard
25. Processing T2 corporation income tax returns
Within 60 days
90%
N/A
N/A
N/A
92%
91%
Met or exceeded target
[Footnote 1] GST/HST has been added to the count for this service standard.
[Footnote 2] Represents the average number of weeks
[Footnote 3] The standard was changed from 21 days to 30 days to align with legislative change.

Accounts Receivable and Returns Compliance

Service
Service standard
Current Target
2004-
2005
2005-
2006
2006-
2007
2007-
2008
2008-
2009
Rating
26. Processing fairness requests related to accounts receivable and trust accounts programs
4-6 weeks
90%
90%
90%
n/a [Footnote 1]
n/a 1
n/a 1
[Footnote 1] Reliable data not available

Reporting Compliance

Service
Service standard
Current Target
2004-
2005
2005-
2006
2006-
2007
2007-
2008
2008-
2009
Rating
27. Processing non-resident Regulation 105 waiver requests
30 days
85%
N/A
N/A
N/A
83%
92%
Met or exceeded target
28. SR&ED refundable claims
120 days
90%
93%
92%
96%
96%
96%
Met or exceeded target
29. SR&ED non-refundable claims
365 days
90%
94%
95%
96%
97%
97%
Met or exceeded target
30. SR&ED claimant-requested adjustments to refundable claims
240 days
90%
95%
94%
97%
97%
97%
Met or exceeded target
31. SR&ED claimant-requested adjustments to non-refundable claims
365 days
90%
94%
94%
93%
95%
95%
Met or exceeded target
32. Video and film tax credits – Refundable claims (unaudited)
60 days
90%
94%
90%
97%
97%
96%
Met or exceeded target
33. Video and film tax credits – Refundable claims (audited)
120 days
90%
95%
92%
96%
96%
96%
Met or exceeded target

Appeals

Service
Service standard
Current Target
2004- 2005
2005- 2006
2006- 2007
2007-
2008
2008-
2009
Rating
34. Initial contact letter for disputes
30 days
85%
90%
89%
89%
84%
68%
Target not met
35. Problem Resolution Program
Acknowledged within 2 working days
95% [Footnote 1]
98%
98%
97%
95%
96%
Met or exceeded target
New or modified service standard
36. Problem Resolution Program
Resolution/client contact within 15 working days
95%
97%
97%
97%
95%
96%
Met or exceeded target
[Footnote 1] Target revised from 100% to 95% per Corporate Business Plan

Benefit Programs

Service
Service standard
Current Target
2004- 2005
2005- 2006
2006- 2007
2007-
2008
2008-
2009
Rating
37. Canada Child Tax Benefit – Telephone enquiries
Respond to calls in queue within 2 minutes
75%
N/A
N/A
N/A
78%
78%
Met or exceeded target
38. Processing benefit applications and marital status change forms – Timeliness
Issue a payment, notice, or explanation within 80 days
98%
99%
99%
99%
99%
97%
Target mostly met (at least 95% of target)
39. Processing benefit applications and marital status change forms – Accuracy
Accurately process information and, if necessary, issue a payment, notice, or letter
98%
N/A
N/A
N/A
98%
98%
Met or exceeded target
40. Responding to benefit and credit enquiries – Timeliness
Issue a payment, notice, or explanation within 80 days
98%
99%
97%
98%
99%
98%
Met or exceeded target
41. Responding to benefit and credit enquiries – Accuracy
Respond to recipient written enquiries and telephone referrals from the call centres with the correct information, and process new recipient information including issuing a payment, notice, or letter accurately
98%
N/A
N/A
N/A
97%
97%
Target mostly met (at least 95% of target)
42. Validation and control – Results of review
60 days
45 days [Footnote 1]
90%
98%
94%
n/a
99%
97%
Met or exceeded target
New or modified service standard
43. Process a request to authorize or cancel a representative
Within 20 days of receipt during peak period
90%
n/a
96%
77%
91%
76%
Target not met
44. Process a request to authorize or cancel a representative- Accuracy (peak)
Accurately process the request, and if necessary, send a letter requesting additional information
98%
99%
Met or exceeded target
45. Process a request to authorize or cancel a representative
Within 5 days of receipt during non-peak periods
90%
50%
71%
33%
75%
72%
Target not met
46. Process a request to authorize or cancel a representative- Accuracy (non-peak)
Accurately process the request, and if necessary, send a letter requesting additional information
98%
98%
Met or exceeded target
[Footnote 1] Standard shortened from 60 days to 45 days

Corporate Services

Service
Service standard
Current Target
2004- 2005
2005- 2006
2006- 2007
2007-
2008
2008-
2009
Rating
47. Client or taxpayer requests for statistical tax data
Respond to client or taxpayer requests for statistical data within an average of 30 days
100%
N/A
28 days
28 days
29 days
28 days
Met or exceeded target

The following table provides an update on service standards under development.

Service Standards Under Development in 2009-2010

Program Activity
Service Standard
Proposed Target
Taxpayer and Business Assistance
Review and respond to applications for charitable registration upon receipt of a complete application, within established standards
80%
GST/HST Rulings and Interpretations, telephone enquiries – Respond to calls in the queue within two minutes
80%
Request for eligible contributions within 270 days. This standard would rename actuarial validation reports and raise the target.
80%
International and non-resident general enquiries – Telephone service level – Respond to calls in the queue within two minutes
80%
Appeals
Processing disputes
tbd



Date modified:
2009-11-05