2015-16 Report on Plans and Priorities
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2015-16 Report on Plans and Priorities
Section 2: Analysis of programs by strategic outcome
Program: Appeals
The appeals program provides a fair and impartial redress process to resolve disputes arising from decisions made by the CRA, and to respond to service complaints and requests for relief from penalties and interest. The Appeals program also assists the Department of Justice in handling cases that are sent before the courts.
Budgetary financial information
| 2015-2016 Main Estimates |
2015-2016 planned spendingFootnote 1 |
2016-2017 planned spendingFootnote 1 |
2017-2018 planned spendingFootnote 1 |
|---|---|---|---|
| 179,658,662 | 179,658,662 | 177,823,494 | 175,576,460 |
Human resources
| 2015-2016 | 2016-2017 | 2017-2018 |
|---|---|---|
| 1,696 | 1,669 | 1,649 |
Performance measurements
| Indicators | Targets | Date to be achieved |
|---|---|---|
| Percentage of targeted levels of timeliness and consistency for income tax and commodity tax objections, CPP/EI appeals to the minister, and service complaints that are met | 98% | March 2016 |
| Indicators | Targets | Date to be achieved |
|---|---|---|
| Percentage of targeted levels of transparency and objectivity for income tax and commodity tax objections, CPP/EI appeals to the minister that are met | 98% | March 2016 |
Subprogram: Income and commodity tax objections, determinations, and appeals to the courts
The Income Tax Objections, Determinations, and Appeals to the Courts subprogram provides a timely, impartial, and consistent dispute resolution process for taxpayers who disagree with the CRA decisions relating to assessments or determinations made under the Income Tax Act, the Excise Act, and Excise Tax Act. This program also assists the Department of Justice in handling appeals to the courts.
Budgetary financial information
| 2015-2016 planned spending |
2016-2017 planned spending |
2017-2018 planned spending |
|---|---|---|
| 149,186,506 | 146,459,019 | 145,042,699 |
Human resources
| 2015-2016 | 2016-2017 | 2017-2018 |
|---|---|---|
| 1,214 | 1,211 | 1,202 |
Performance measurements
| Indicators | Targets | Date to be achieved |
|---|---|---|
| Percentage of decisions on objections filed under the Income Tax Act, the Excise Act, and the Excise Tax Act completed within established timeframes | 85% | March 2016 |
| Percentage of decisions on objections filed under the Income Tax Act, the Excise Act and the Excise Tax Act determined to meet or exceed consistency standards | 90% | March 2016 |
| Percentage of decisions on objections filed under the Income Tax Act, the Excise Act, and the Excise Tax Act determined to be objective that meets or exceeds targets | 95% | March 2016 |
Planning highlights
Every taxpayer who disagrees with a CRA decision about an assessment has access to the CRA's dispute resolution process. The Agency receives approximately 80,000 objections each year. To make sure they are handled in a timely, impartial, and consistent manner, the CRA segments objections into various categories including low-complexity, medium-complexity, high-complexity, and group objections.
Low-complexity files usually involve the application of basic provisions of the law, with little research required. Examples include objections to decisions about individual tax credits, personal deductions, the Canada child tax benefit, the disability tax credit, and other deductions on regular individual (T1) returns. The CRA has established a new target of resolving low-complexity files within 180 days, 90% of the time.
Medium-complexity objections frequently involve more complex provisions of the law and complex transactions such as decisions about business deductions, scientific research and experimental development claims, and more complex T1 issues. High-complexity objections typically require more extensive research because they involve large files, multi-national corporations, complex business transactions, international transactions, as well as anti-avoidance provisions. Both medium- and high-complexity objections require a higher level of technical expertise and are assigned accordingly.
Group objections relate to tax schemes that involve a significant number of taxpayers such as gifting tax shelters, RRSP strips, and other aggressive tax planning schemes. These have become increasingly common in recent years, resulting in a large backlog of inventory. In the last year, 85,000 gifting tax shelter objections have been processed, of which 47,000 have been resolved. As for the remaining objections, an amendment to the Income Tax Act now allows the CRA to apply to the court to have the remaining taxpayers bound to lead litigation cases.
Deliverables
- In 2015-2016, the CRA will meet its newly established target by resolving new intake of low-complexity objections within 180 days, 90% of the time.
- During the planning period, the CRA will resolve the current inventory of aged low-complexity files (already more than 180 days old).
- To handle medium-complexity objections, the CRA will develop a national shelf—or a central repository—to allow for more efficient and systematic distribution of incoming objections, and the Agency will implement an inventory management strategy.
- The CRA will continue to reduce the group objections inventory. With over 85,000 processed so far, the Agency will continue to systematically process these group objections and further reduce its inventory during the planning period.
- To protect taxpayers and help prevent them from making potentially costly errors, the CRA will continue working to build taxpayer awareness of tax shelter schemes and unscrupulous promoters.
Subprogram: Canada Pension Plan/employment insurance appeals to the minister and appeals to the courts
The Canada Pension Plan/Employment Insurance Appeals to the Minister, and Appeals to the Courts subprogram provides a timely, impartial, and consistent dispute resolution process for taxpayers who disagree with the CRA decisions relating to assessments or rulings made under the Canada Pension Plan and the Employment Insurance Act. This program also assists the Department of Justice in handling appeals to the courts.
Budgetary financial information
| 2015-2016 planned spending Footnote 2 |
2016-2017 planned spending Footnote 2 |
2017-2018 planned spending Footnote 2 |
|---|---|---|
| 3,883,570 | 4,447,891 | 4,456,384 |
Human resources
| 2015-2016 Footnote 3 | 2016-2017 Footnote 3 | 2017-2018 Footnote 3 |
|---|---|---|
| 176 | 147 | 147 |
Performance measurements
| Indicators | Targets | Date to be achieved |
|---|---|---|
| Percentage of reviews of appeals to the minister filed under the Canada Pension Plan or the Employment Insurance Act completed within established time frames | 85% | March 2016 |
| Indicators | Targets | Date to be achieved |
|---|---|---|
| Percentage of decisions regarding CPP/EI appeals to the minister determined to meet or exceed accuracy standards | 90% | March 2016 |
| Indicators | Targets | Date to be achieved |
|---|---|---|
| Percentage of decisions of CPP/EI appeals to the minister determined to be objective | 95% | March 2016 |
Planning highlights
Thousands of Canadians rely on payments through the Canada Pension Plan (CPP) or employment insurance (EI), and prolonged disputes can potentially cause financial hardship. Canadians are entitled to dispute decisions related to CPP/EI payments. Each year the CRA receives and resolves about 3,000 CPP/EI disputes. It also helps the Department of Justice Canada in handling cases where taxpayers want to pursue further recourse, typically filing approximately 300 CPP/EI appeals before the Tax Court of Canada.
Deliverables
- The CRA will implement a new centralized approach to workload management to increase efficiency in handling CPP/EI appeals and to ensure consistency and timeliness in the level of service as well as the application of legislation.
Subprogram: Service complaints
The service complaints subprogram provides taxpayers with a complaint resolution process to address dissatisfaction with the service, quality, or timeliness of the CRA's work, and complaints related to the Taxpayer Bill of Rights.
Budgetary financial information
| 2015-2016 planned spending |
2016-2017 planned spending |
2017-2018 planned spending |
|---|---|---|
| 7,957,575 | 8,022,375 | 8,028,928 |
Human resources
| 2015-2016 | 2016-2017 | 2017-2018 |
|---|---|---|
| 96 | 96 | 97 |
Performance measurements
| Indicators | Targets | Date to be achieved |
|---|---|---|
| Percentage of service complaints acknowledged within two business days | 80% | March 2016 |
| Indicators | Targets | Date to be achieved |
|---|---|---|
| Percentage of service complaints resolved within 30 business days | 80% | March 2016 |
Planning highlights
The CRA's complaint resolution process enables taxpayers to express dissatisfaction with the service, quality, or timeliness of the Agency's work, as described in the Taxpayer Bill of Rights. In 2013-2014, the Agency was able to resolve more than 2,700 service complaints within 30 business days more than 95% of the time.
The CRA recognizes taxpayer feedback can provide valuable insight, which in turn helps to identify and implement service improvements. The Agency collects feedback through the service complaints program, the call centre, and other formal and informal channels. The key challenge is to consistently and effectively capture this input so the Agency can make continuous improvements.
The CRA recognizes taxpayer feedback can provide valuable insight.
Deliverables
- The CRA will develop a model to collect taxpayer feedback received from all of the Agency's programs. This Agency feedback model will enable the CRA to quickly identify and respond to systemic issues or problems. Planning and development of the feedback model will occur in 2015-2016, and implementation is expected in 2016-2017.
Subprogram: Taxpayer relief
The taxpayer relief subprogram administers the process under which the Minister of National Revenue may, per legislative provisions, grant relief from penalties and interest to taxpayers who are unable meet their tax obligations due to personal misfortune or circumstances beyond their control.
Budgetary financial information
| 2015-2016 planned spending |
2016-2017 planned spending |
2017-2018 planned spending |
|---|---|---|
| 18,631,011 | 18,894,209 | 18,048,449 |
Human resources
| 2015-2016 | 2016-2017 | 2017-2018 |
|---|---|---|
| 210 | 215 | 203 |
Performance measurements
| Indicators | Targets | Date to be achieved |
|---|---|---|
| Percentage of decisions on taxpayer relief requests determined to meet or exceed consistency standards | 85% | March 2016 |
Planning highlights
The CRA administers the process under which the Minister of National Revenue may cancel or waive penalties and interest under taxpayer relief provisions. Each year, the Agency resolves more than 300,000 requests for taxpayer relief from taxpayers who cannot meet their tax obligations due to personal misfortune or circumstances beyond their control.
Deliverables
- By 2017, the CRA will implement a new service standard to measure turnaround times for acknowledgement letters to taxpayers' requests for relief.
- To provide better service to Canadians and to allow for more efficient distribution of incoming taxpayer relief requests, the Agency will implement a national inventory management system in 2015-2016.
Footnotes
- Footnote 1
-
Planned spending refers to those amounts for which a Treasury Board submission approval has been received by no later than February 1, 2015. This cut–off date differs from the Main Estimates process. While in any given year planned spending may include amounts incremental to planned expenditure levels presented in the Main Estimates, this year it does not.
- Footnote 2
-
The increase in planned spending from 2015-2016 to 2017-2018 in the CPP/EI appeals to the minister and appeals to the courts subprogram results primarily from the recoverable expenditures on behalf of the Canada Pension Plan and the Employment Insurance Act.
- Footnote 3
-
The decrease in planned full-time equivalents under the CPP/EI Appeals to the minister and Appeals to the courts subprogram from 2015-2016 to 2017-2018 results from a change in the recoverable expenditures on behalf of the Canada Pension Plan and the Employment Insurance Act.
- Date modified:
- 2015-03-31