assisting taxpayers
Disclaimer
We do not guarantee the accuracy of this copy of the CRA website.
Scraped Page Content
assisting taxpayers
The Canadian tax system is based on taxpayers determining their tax liability, and filing and paying on time, voluntarily. This self-assessment approach is fundamental to the sustainability of our tax system. For voluntary compliance to work, taxpayers need accurate, accessible information and user-friendly services supported by reliable, timely, and efficient back-office functions.
Third parties are key partners in this system: employers are responsible for deducting and remitting individual income tax for their employees throughout the tax year, financial institutions provide data to help ensure accurate taxation of investment income, and tax intermediaries help over 65% Footnote 1 of individuals and businesses prepare their tax returns. In 2011-2012, 91% of individuals filed their tax return on time and 94% paid their taxes on time.
Increasingly, taxpayers and their representatives expect government services to be available online, 24/7, with secure access to their information and the ability to undertake routine and even specialized transactions on a self-serve basis. Most taxpayers still want the option of contacting an agent to ask specific questions and to deal with non-routine enquiries. The CRA responds to these needs and expectations by:
- providing information in a variety of formats to all types of taxpayers and to third parties;
- enabling self-service taxpayer interactions; and
- processing returns and payments quickly and accurately.
Our strategic goal is to make compliance easier for taxpayers and their representatives by providing them with the information and services they need to voluntarily comply with tax laws. We measure our success in assisting taxpayers by reviewing the number of taxpayers who filed and paid taxes on time, the results of our client surveys, and usage rates of our various service channels.
spending profile
providing information
web site
The CRA's Web site is our primary channel for providing general information to taxpayers and their representatives. We maintain 155,000 pages of information, which are regularly updated. We also actively search out best practices in Web site management and apply them where feasible and appropriate for our site.
outreach
In 2011-2012, the CRA continued to offer a variety of channels for providing information to taxpayers, such as face-to-face information sessions and webinars, which are Internet-based, interactive presentations. These offer taxpayers important information about starting a small business, registering for a GST/HST account, payroll requirements, preparing T4 slips, and more. They are also available for charities, scientific research and experimental development programs, tax preparers, and tax professionals. We also offer taxpayers a number of online videos about CRA programs and initiatives. We have been expanding the range of information that is available online so that taxpayers can get the information they need when they need it from their home or office.
- delivered 26 webinars.
- delivered 3,686 outreach sessions to more than 89,000 participants.
- released a video on our Web site entitled Preparing your Income Tax and Benefit Return.
- released four videos for businesses – Starting Your Business, Payroll Information for a New Small Business, Keeping Records, and Reporting Business Income and Expenses.
social media
The CRA has been steadily building its capacity to offer information through popular social media tools such as YouTube and Twitter. During this year's tax season, we expanded the use of social media. This included tweeting news releases, tax tips, and notices of conviction for tax evasion as well as guiding audiences to content on our Web site. Our messages are commonly re-tweeted to a wider audience, which has further increased the number of CRA followers.
In November, we launched a pilot project to progress from merely sharing messages on Twitter to interacting with followers. We began answering questions and offering assistance by tweeting links to our Web site. Through this exchange, we provided information on more than 20 topics ranging from tax credits to changes of address to finding the nearest tax services office.
We also continued to use CRA's YouTube channel to share informative videos about new tax credits like the children's art tax credit and our Netfile service.
taxpayer interactions
The CRA helps taxpayers make payments and file returns, and gives them other information they need so that they can comply with Canada's tax laws. We aim to be timely, efficient, and accurate in handling taxpayers' enquiries and transactions. Recognizing that taxpayers are more likely to comply if it is easy to do so, we aim for services that are easy to use and that reduce the compliance burden. Since many taxpayers prefer to use an authorized representative, the CRA provides services to assist tax intermediaries acting on behalf of their clients.
online self-service
Many taxpayers and tax intermediaries prefer to carry out their business with the CRA on a self-service basis, using our secure online portals: My Account for individuals and My Business Account for businesses. Our Represent a Client portal enables tax intermediaries to carry out account-specific transactions on behalf of the individuals and businesses they represent. Our Quick Access service gives individuals immediate access to some of their information in My Account. In recent years, we have made it a priority to enhance our online portals: we see it as key to making compliance easier for individuals and for businesses.
My Account for individuals
- Our Quick Access self-serve Web pages had over 440,000 new unique users in 2011‑2012 and about one million accesses each year since it was launched in 2007-2008.
- In 2011-2012, 5,837,173 users successfully logged in to My Account.
- We improved the look and feel to make it easier to navigate.
- We added seven new services and service enhancements to My Account during 2011-2012. Among the added features, My Account users can:
- change marital status;
- verify T4 and T4A slips to reduce reporting errors; and
- view information such as tuition carry forward amounts.
My Business Account
- We added 23 new services and service enhancements to My Business Account during 2011-2012. Among the added features, My Business Account users can:
- adjust a previously assessed GST/HST return online or file a GST/HST election online;
- calculate instalment payments for the next filing period;
- transfer payments from one program to another;
- submit account-specific enquiries about GST/ HST returns, GST/HST rebates, T2 corporation returns, and specialty business returns; an
- view account-specific messages through the Message Centre on the My Business Account portal.
- Use of My Business Account has increased significantly since its introduction. In the last three years, the number of businesses enrolled in My Business Account increased by 70.9%.
did you know? Business Numbers can be used with other government partners, such as Ontario's Ministry of the Environment and British Columbia's registry services.
Represent a Client
- We added new features to the Represent a Client portal to make it easier for tax preparers and professionals to manage accounts and make online requests to view their clients' transactions.
- There has been a substantial increase in the use of our Represent a Client service, which is a positive indicator that intermediaries are embracing this service.
telephone services
The CRA's telephone services provide general information to taxpayers, and also help with more complex enquiries. Taxpayers prefer to find general information themselves on our Web site and then call the CRA if they need further explanation or information on how it applies to their specific circumstances.
processing services
Each year, the CRA receives over 38.6 million tax and information returns from individuals, businesses, and third parties. The CRA processes these returns and enters the information into our systems. The information is used to update taxpayer accounts and determine current status of tax obligations. The returns are then filed for future reference. The CRA also processes over 34.7 million payments from a wide variety of sources and payment methods. Taxpayers count on the CRA to capture information accurately, and to fairly and quickly assess any remaining tax obligations, including any refunds or additional tax payable.
returns
Individuals and businesses continue to shift to electronic transactions.
- The number of corporate and GST/HST returns filed electronically increased by 36.3% and 39.8% respectively in 2011-2012.
- Electronic processing of T4 and T5 information returns increased 2.8% and 32% respectively from last year.
- 91% of individuals filed their tax return on time.
- 85% of corporations with taxable income filed their tax returns on time.
- 94% of individuals and 90% of corporations paid their reported taxes on time.
- We processed 16.7 million individual tax returns filed electronically within 11 days of receiving them.
- For the 10.1 million individuals who filed paper returns, their returns were processed within 3.9 weeks of receipt.
When reviewing tax returns, we compare the information the taxpayer provided with available third–party information to ensure taxpayers have claimed the credits to which they are entitled. We adjust returns where needed and issue any applicable refund.
- During 2011-2012, we corrected nearly 307,000 individual returns.
- This resulted in an average beneficial adjustment of $316 per return.
payments
During 2011-2012, the CRA processed about 34.7 million tax payments; 33.4% were electronic payments. The total value of the payments processed was approximately $419 billion.
Electronic payment makes payment of taxes owing convenient and easy for taxpayers. If taxpayers elect to pay by cheque, the CRA promptly deposits payments so that taxpayers can be certain of the status of their tax affairs.
- For the greater part of 2011-2012, we exceeded our target of depositing payments within 24 hours of receipt.
- The Canada Post labour dispute in June and July had an impact on our ability to meet our service targets for payment processing. As a result, our average for the year was 94% of payments deposited in 24 hours.
- We processed almost 1.5 million more electronic payments during 2011-2012 than in 2010-2011.
- We promoted the benefits of paying online to taxpayers during the 2011 filing season through the CRA Web site, news releases, videos, Twitter, and our tax filing season fact sheet. Our main message was “Save time, pay online!”
We are investigating future opportunities for improved ease and access for individuals and businesses, and we continue to move forward with our payment strategy to use new, secure technologies where possible.
early certainty
Some taxpayers ask the CRA for written information on how a tax law applies in a specific context. The CRA provides non-binding, written technical interpretations on a particular aspect of tax law to help taxpayers ensure that they are compliant with the transactions they may be considering. Advance income tax rulings on a specific transaction proposed by a taxpayer are binding on the CRA, provided that the taxpayer undertakes the transaction as described. This technical service helps taxpayers by giving them the information they need to conduct their tax affairs with confidence and certainty in Canada and across international borders.
- The turnaround time for technical interpretations to taxpayers met our service standard for the fourth consecutive year.
Meeting our service standard for providing advance income tax rulings within 60 days has proved challenging for the CRA. These rulings often involve issues of great technical complexity and the workload is also often influenced by factors that are beyond the control of the CRA, such as legislative changes and court rulings. To respond, we made changes to the workflow process and revised our service standard for advanced income tax rulings. These changes set a challenging but realistic service standard for the CRA. We will explore opportunities to reduce workload pressures by providing comprehensive online information services that will give taxpayers the degree of early certainty they need to make informed decisions.
influencing compliance attitudes
Helping taxpayers understand the positive outcomes of compliance and the negative consequences of non‑compliance is important to voluntary compliance. We need to make sure that taxpayers understand their tax obligations and that they are motivated to comply. The CRA works with partners in government, the community, and industry to help taxpayers understand that paying taxes is a part of responsible citizenship and a healthy economy.
The underground economy is a particular focus of our activities to influence compliance attitudes. A Statistics Canada study Footnote 3 released in September 2012 found that in 2009, the three most significant sectors of the economy engaging in underground economy activity were construction (29%), retail trade (20%), and accommodation and food services (12%). The CRA provides outreach to businesses and individuals who may be exposed to the underground economy to help them understand the risks.
- The CRA partnered with the provinces of British Columbia, New Brunswick, and Ontario to pilot the Trade School Initiative, a new educational project intended to raise awareness of tax responsibilities for students preparing for careers in the construction and renovation industry.
- The CRA's Get it in Writing campaign reminds homeowners undertaking renovation projects of the protection that a formal contract provides.
voluntary disclosures
The Voluntary Disclosures program gives taxpayers a way to come forward and correct inaccurate or incomplete information. We offer this program as an opportunity for taxpayers to correct earlier mistakes and put their tax affairs in order. Taxpayers using the program have to pay the taxes owing, plus interest, but may avoid penalties and prosecution relating to the amounts disclosed. Information gained from these disclosures is helpful in identifying other taxpayers who may not have correctly identified their tax liability. During 2011-2012, we received 18.4% more voluntary disclosures and identified over $863 million in unreported income. The surge in cases received is partially attributable to better promotion of the program, but it is also a positive sign that taxpayers are increasingly becoming aware of their tax obligations.
Our performance measures for assisting taxpayers
|
Mostly Met Footnote 1
|
|||||
conclusion
The CRA's services to assist taxpayers and their representatives continue to evolve to meet the existing and emerging needs of Canadians. In 2011-2012, we met or mostly met all of our targets for assisting taxpayers, with one exception. The growth in uptake of our online services tells us that the CRA is successfully responding to expectations for electronic self-services. As a result, the CRA considers that it has met its overall objective for assisting taxpayers in 2011-2012. However, we did not meet our service standard for issuing advance income tax rulings: we recognize we need to evolve this service, and our service commitment, to reflect the growing number and complexity of requests.
In 2012-2013, we will continue to use our online information and interactive services to advance our goal of making compliance easier for individuals and businesses, and helping tax intermediaries ably and accurately represent their clients.
- Date modified:
- 2012-11-08