CRA Annual Report to Parliament 2009-2010 - Schedule C – Service Standards at the CRA – Overall Results

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Schedule C – Service Standards at the CRA – Overall Results

About external service standards

In today’s results-based management environment, service standards are an essential tool for managing effective, citizen-focused service delivery. The CRA’s service standards are a vital and integral part of our planning, reporting, and performance management processes.

External service standards publicly state the level of performance that Canadians can reasonably expect to encounter from the CRA under normal circumstances. CRA service standards are developed based on operational realities, Canadians’ expectations, historical performance, and the degree of complexity of the work required to deliver the service. Meeting our service standard targets demonstrates that the CRA is efficient and responsive to the needs of taxpayers and benefit recipients.

Improving service delivery to Canadians has been an important goal of the CRA since its creation in 1999. In fulfilling this commitment, we have completed a comprehensive review of the current service standards in the CRA; the findings are explained in the following pages.

Service standard review project

The aim of the review was to ensure that our service standards properly reflect the evolution of the CRA and provide taxpayers and benefit recipients with appropriate information on the standard of service the CRA offers. In carrying out this objective, the review focused primarily on whether the CRA is communicating, monitoring, and reporting on the right services, with the right targets, in a way that is meaningful to, and effective for, clients.

Overall, the review has confirmed that the state of the CRA’s service standards is very good. The service standard development and approval processes are clear and understood, and the CRA has a good mix of timeliness and accuracy standards for key services. Measurement processes are appropriately focused and targets are sufficiently ambitious and challenging for the program delivery areas. In terms of overall management of service standards, the CRA is a leader at both the national and international levels.

The review also identified some areas for improvement. For example, we need to introduce more opportunities for client perspectives in developing and reporting on service standards. The review found that we do not always seek client input with the same frequency and rigour across the CRA. We will undertake further work to determine an effective and efficient means of incorporating client perspectives when we develop service standards.

The review also pointed to the need to adopt a portfolio approach to managing service standards. A portfolio approach places greater emphasis on managing service standards as an integrated whole.

Lastly, the review identified an opportunity to more clearly communicate our service standards by incorporating a client-segmented approach that places greater emphasis on tailoring service standards to relevant taxpayer segments. We plan to enhance our Web site to improve how we communicate service standards and to make navigation more user-friendly.

The recommendations of the review will be implemented in a phased approach over the next two years.

Our Service Standard Results


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
2005-
2006
2006-
2007
2007-
2008
2008-
2009
2009-
2010
Rating
1. General enquiries
– Telephone
Respond to
calls in queue
within 2
minutes
80%
80%
82%
83%
82.4%
80.9%
Met or
exceeded
target
2. Business
enquiries –
Telephone
Respond to
calls in queue
within 2
minutes
80%
85%
81%
81.7%
86.8%
86.1%
Met or
exceeded
target
3. Charities
– Respond
to telephone
enquiries
Respond to
calls in queue
within 2
minutes
80%
86%
88%
86%
87%
89.9%
Met or
exceeded
target
4. Advance income
tax rulings to
taxpayers
Within an
average of
60 days
100%
84 days
94 days
101days
104 days
98 days
Target not
met
5. Technical
interpretations
to taxpayers
Within an
average of
90 days
100%
87 days
105 days
89 days
91 days
89 days
Met or
exceeded
target
6. GST/HST Rulings
and
Interpretations –
Written enquiries
Within 45
working days
of receipt of
request
80%
88%
87%
89.4%
92.8%
94.1%
Met or
exceeded
target
7. Applications to
register pension
plans
Complete
review in
180 days
85%
96.2%
96.6%
93.9%
92.2%
86.5%
Met or
exceeded
target
8. Amendments to
registered
pension plans
9 months
80%
89.1%
82.1%
76.6%
70.9%
67.2%
Target not
met
9. Terminate
registered
pension plans
1 year
85%
90.3%
87.9%
82.4%
79.6%
80.7%
Target mostly
met (at least 95%
of target)
10. Retirement
savings plans
(applications to
register, amend,
or terminate)
Within 60 days
80%
83.6%
85.3%
84.9%
86.7%
80.1%
Met or
exceeded
target
11. Retirement
income funds
(applications to
register, amend,
or terminate)
Within 60 days
80%
83.7%
91.2%
90.5%
94.4%
92.6%
Met or
exceeded
target
12. Education savings
plans
(applications to
register, amend,
or terminate)
60 days
85%
88%
85.3%
71.4%
93.1%
95%
Met or
exceeded
target
13. Actuarial
valuation reports
9 months
80%
79.7%
35.5%
55.9%
63%
58.9%
Target not
met
14. Deferred income
plans – Respond
to written
enquiries
Within 60 days
80%
75.1%
60.2%
37.6%
64.8%
71.4%
Target not
met
15. Deferred profit
-sharing plans
Registration in
180 days
80%
97%
98.9%
96.8%
99.8%
99.4%
Met or
exceeded
target
16. Deferred profit
-sharing plans
Amendments
and terminations
within 270 days
80%
67.5%
89%
86.5%
88.4%
52.1%
Target not
met

Assessment of Returns and Payment Processing

Service
Service Standard
Current Target
2005-
2006
2006-
2007
2007-
2008
2008-
2009
2009-
2010
Rating
17. Respond to
taxpayer
- requested
adjustments (T1)
within
an
average
of 8
weeks
100%
6 weeks
7 weeks
7 weeks
7 weeks
7 weeks
Met or
exceeded
target
18. Respond to
taxpayer
- requested
adjustments (T1)
received via the
Internet [Footnote 1]
within
an
average
of 2
weeks
100%
Not Applicable
Not Applicable
2 weeks
2 weeks
2 weeks
Met or
exceeded
target
19. Provide
statements of
interim payments
(SIPS) to
T2 corporate
income tax/GST/
HST clients on
a monthly basis
Mailed
by the
18th of
the month
95%
99.4%
100%
80.2%
94.3%
100%
Met or
exceeded
target
20. Process T1
individual income
tax returns (paper)
in an
average
of 4-6
weeks
100%
3.6 weeks
3.9 weeks
4.1 weeks
4.0 weeks
4.3 weeks
Met or
exceeded
target
21. Process T1
individual income
tax returns
(electronic)
within
an
average
of 2
weeks
100%
1.9 weeks
1.6 weeks
1.7 weeks
1.6 weeks
1.6 weeks
Met or
exceeded
target
22. Process T3 trust
returns
Within
4 months
95%
96%
95.7%
98%
97.2%
97.6%
Met or
exceeded
target
23. Process excise tax,
excise duty, and
air travellers
security charge
returns
Within
90 days
95%
Not Applicable
98.1%
98.2%
99%
97%
Met or
exceeded
target
24. Process GST/HST
returns
Within
30 days
95%
98.3%
98.5%
91.9%
97.3%
Not Available [Footnote 2]
Not
Applicable
25. Process T2
corporation
income
tax returns
Within
60 days
90%
Not Applicable
Not Applicable
92%
90.8%
92.8%
Met or
exceeded
target
[Footnote 1] New standard and target for 2007-2008.
[Footnote 2] Substantiated results not available for 2009-2010. Revised data capture method began in June 2010.

Accounts Receivable and Returns Compliance

Service
Service Standard
Current Target
2005-
2006
2006-
2007
2007-
2008
2008-
2009
2009-
2010
Rating
26. Process
taxpayer
relief
requests
related to
accounts
receivable
and trust
accounts
programs
4-6 weeks
90%
90%
Not Available [Footnote 1]
Not Available1
Not Available1
Not Available1
[Footnote 1] Reliable data not available

Reporting Compliance

Service
Service Standard
Current Target
2005-
2006
2006-
2007
2007-
2008
2008-
2009
2009-
2010
Rating
27. Process
non-resident
Regulation 105
waiver requests
30 days
85%
Not Applicable
Not Applicable
83.5%
92.3%
94%
Met or
exceeded
target
28. SR&ED
refundable
claims
120 days
90%
92%
96.1%
96.3%
96.3%
96.3%
Met or
exceeded
target
29. SR&ED
non-refundable
claims
365 days
90%
95%
96.1%
96.8%
97.3%
96%
Met or
exceeded
target
30. SR&ED claimant
-requested
adjustments to
refundable
claims
240 days
90%
94%
96.8%
97.1%
96.9%
97.3%
Met or
exceeded
target
31. SR&ED claimant
-requested
adjustments to
non-refundable
claims
365 days
90%
94%
92.9%
95.1%
96.4%
95.1%
Met or
exceeded
target
32. Video and film
tax credits
– Refundable claims
(unaudited)
60 days
90%
90%
96.6%
96.6%
96.4%
92.9%
Met or
exceeded
target
33. Video and film
tax credits
– Refundable
claims (audited)
120 days
90%
92%
96%
95.9%
96.3%
91.9%
Met or
exceeded
target

Appeals

Service
Service Standard
Current Target
2005- 2006
2006- 2007
2007-
2008
2008-
2009
2009-
2010
Rating
34. First contact
letter for
disputes
30 days
85%
89%
89%
84%
68%
50%
Target
not met
35. Problem
Resolution
Program
Acknowledged
within 2
working
days
95%
98%
96.7%
95.1%
95.5%
97.1%
Met or
exceeded
target
36. Problem Resolution Program
Resolve/client contact within 15 working days
95%
97%
96.7%
95.4%
95.9%
96.6%
Met or
exceeded
target

Benefit Programs

Service
Service Standard
Current Target
2005- 2006
2006- 2007
2007-
2008
2008-
2009
2009-
2010
Rating
37. Canada Child Tax
Benefit – telephone
enquiries
Respond to
calls in queue
within 2
minutes
75%
76%
75%
78.3%
78%
74.9%
Met or
exceeded
target
38. Process benefit
applications and
marital status change
forms – Timeliness
Issue a
payment,
notice, or
explanation
within
80 days
98%
99.4%
99%
99.1%
97.4%
98.8%
Met or
exceeded
target
39. Process 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
98%
97.7%
97.4%
Target mostly
met (at least 95%
of target)
40. Respond to benefit
and credit enquiries
– Timeliness
Issue a
payment,
notice,
or explanation
within 80
days
98%
97.2%
97.8%
99%
98%
93%
Target mostly
met (at least 95%
of target)
41. Respond 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%
Not Applicable
Not Applicable
97.3%
97.1%
99.3%
Met or
exceeded
target
42. Validation and
control – Results of
review
45 days
90%
93.6%
Not Available
98.7%
97%
94.2%
Met or
exceeded
target
43. Process a request to
authorize or cancel a
representative –
Timeliness (peak)
Within 20
days of
receipt
during peak
period
90%
95.5%
76.8%
91%
75.8%
93.8%
Met or
exceeded
target
44. Process a request to
authorize or cancel a
representative-
Accuracy (peak) [Footnote 1]
Accurately
process the
request, and,
if necessary,
send a letter
requesting
additional
information
98%
Not Applicable
Not Applicable
Not Applicable
99%
99%
Met or
exceeded
target
45. Process a request to
authorize or cancel a
representative –
Timeliness (non-peak)
Within 5
days of
receipt
during non-
peak periods
90%
70.5%
32.8%
75.3%
72.1%
63%
Target not
met
46. Process a request
to authorize or
cancel a
representative- Accuracy (non-peak) 1
Accurately
process the
request, and,
if necessary,
send a letter
requesting
additional
information
98%
Not Applicable
Not Applicable
Not Applicable
98.2%
99%
Met or
exceeded
target
[Footnote 1] Standard introduced in 2008-2009.

Internal Services

Service
Service Standard
Current Target
2005- 2006
2006- 2007
2007-
2008
2008-
2009
2009-
2010
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%
28 days
28 days
29 days
28 days
22 days
Met or
exceeded
target

Service Standards Under Development in 2010-2011

Program Activity
Service Standard
Proposed Target
Taxpayer and Business Assistance (Legislative Policy and Regulatory Affairs)
Charities – respond to written enquiries within four months
90%
Specialty Products – respond to applications to register, amend, or terminate specialty products within 60 calendar days. This standard would combine retirement savings plans, retirement income funds, and education savings plans
to be determined
Deferred profit sharing plans – this standard would combine registration in 180 days with amendments and terminations in 270 days
80%
Taxpayer and Business Assistance (Taxpayer Services – Enquiries)
e-Services Helpdesk telephone enquiries
GST/HST credit telephone enquiries
to be determined
to be determined
Appeals
Enquiries, CRA service complaints – acknowledge the complaint within 2 days,
15-day taxpayer contact, and 30-day complaint resolution
90%
Average working days to complete processing income tax, commodity tax, and CPP/EI disputes
to be determined

Challenges

Achieving all our service standards is important to the CRA. Earlier in this report, we discussed the standards that relate to highest-volume, highest-impact activities of the CRA. The following sections provide more detail on the six service standards that presented challenges for us in meeting our service targets in 2009-2010.

Taxpayer and Business Assistance

We continued to experience problems meeting our target for processing amendments to registered pension plans. During 2009-2010, concentrated actions to reduce aging inventories that had accumulated over the last few years, coupled with new strategies and processes for dealing with workloads, resulted in an overall inventory decrease of 20% and a decline in the aged inventory of 31%. The realignment of resources to deal with aging inventories has adversely affected our ability to meet this standard. However, we believe that by further reducing current inventories, we will improve performance against this service standard for the next fiscal year.

Figure 18 Amendments to Registered Pension Plans



Data quality: Good

Multiple transformation activities have continued to adversely affect our ability to meet our 80% target for reviewing actuarial valuation reports within nine months and providing written approval of the recommended employer contributions. Over the past few years, increasingly complex workflow requirements have caused inventories to accumulate. This challenge has been compounded by the introduction of enhanced compliance activities on individual pension plans, which include lengthy audit procedures. This focus has significantly increased the time it takes to review actuarial valuation reports but has been useful in identifying non-compliance. To address aged inventories, we have implemented a new risk-based approach in an effort to streamline the review. We have also deployed and trained additional employees to focus on a targeted group of pre-screened files.

Figure 19 Actuarial valuation reports



Data quality: Good

Our goal is to respond to written enquiries related to deferred income plans within 60 calendar days. Our target is to meet this standard 80% of the time. Although we did not meet this standard this year, we improved by 6% over last year. As volumes have been declining over time, we intend to remove this service standard in 2011-2012.

Figure 20 Deferred Income Plans – Response to Written Enquiries



Data quality: Good

This year, we experienced a significant decline in performance for amending and terminating deferred profit-sharing plans within 270 days. The significant decline in performance was the result of an error in identifying and assigning files, leading to an increase in old inventory. We have trained additional employees to address this workload. Although we took corrective action and made progress during 2009-2010, we still have files in the inventory that do not meet the service standard. Once the aged inventory has been eliminated, we should be able to meet this standard.

Figure 21 Deferred Profit Sharing Plans – Amendments
and Terminations



Data quality: Good

Appeals

For the service standard related to sending a first contact letter for disputes, our goal is to acknowledge taxpayer disputes within 30 calendar days. As explained on pages and , a number of factors affected the Appeals program intake of disputes, which in turn had an adverse effect on our performance against the service standard. We have implemented a range of activities to address the current performance shortfall. For example, we reallocated existing resources to front-end administrative management activities, and hired and trained more staff to help reduce workloads. These actions should help us to improve our timeliness performance by 2011-2012.

Figure 22 First Contact Letter for Disputes



Data quality: Good

Benefit Programs

We strive to process a request that is received during non-peak tax time (mid-July to mid-March) within five business days. We aim to meet this standard 90% of the time. Our performance has declined since last year due to challenges associated with the timely routing of request forms. Steps are being taken to address these delays in affected regions. These involve process improvements, system changes, and ensuring that the requests are given the appropriate priority. These steps should allow us to improve our timeliness performance by 2011-2012.

Figure 23 Processing a Request to Authorize or Cancel a Representative – Non-peak



Data quality: Good

Adjustments to Service Standards

No changes were made to the CRA’s existing service standards in 2009-2010.



Date modified:
2010-11-02