RC4483 - Action Task Force on Small Business Issues Update on Final Report on Action Items - November 2009

Executive Summary

The Canada Revenue Agency’s (CRA) Action Task Force on Small Business Issues was created in the summer of 2006 to identify which of the CRA's administrative practices imposed the greatest burden on small businesses, develop solutions to reduce the burden, and introduce a systemic approach to burden reduction across the Agency. Membership included private sector representatives familiar with small business issues and senior CRA officials, and was chaired by then Commissioner Bill Baker.
In March 2007, the task force published the report Helping Small Businesses by Reducing the Compliance Burden . In this report the members of the task force identified 61 concrete actions to be undertaken by the CRA to tangibly reduce the compliance burden on small businesses and support the achievement of the federal government’s burden reduction targets. The CRA committed to establish ongoing accountability for burden reduction, champion burden reduction across the Agency, and regularly report on our progress.

The CRA has monitored its progress in three keys areas identified by the action task force:

• Simplifying, improving, and where appropriate, reducing the frequency of small business interactions with the CRA;
• Improving how and when the CRA communicates with small businesses; and
• Making burden reduction systemic within the CRA.

The Interim Report on Actions Items — November 2007 reports 15 of the recommended initiatives completed; 43 underway; and three to be actioned.

The Final Report on Action Items — November 2008 reports 31 initiatives completed and the remaining 30 ongoing.

This Update on the Final Report on Action Items — November 2009 , reports the status on the action items shown as “ongoing” in the November 2008 report. We are pleased that 57 of the original 61 action items are now complete and only four action items remain ongoing.

The update shows:

• action items in italicised black font (Action items);
• previous updates from the interim and final reports in regular black font (Previous updates); and,
• new updates in red (New updates) [Note: Red font is viewable in the PDF version only.]

Many established practices from the Action Task Force on Small Business Issues recommendations are ongoing, and will be in the years to come. The progress achieved demonstrates the CRA’s commitment to making burden reduction systemic and to providing improvements that make compliance easier for businesses.

Focus 1: We will simplify, improve, and, where appropriate, reduce the frequency of small business interactions with the CRA.

1.1.2 - Completed:
Action item - In September 2006, the CRA introduced a new online service called My Business Account to provide business owners with faster, more accessible, and more transparent government service. Through My Business Account, business owners can request a Canada Pension Plan/Employment Insurance ruling, register a formal dispute (objection), file a corporation income tax return, make certain online requests, and view account balances for corporation tax, excise duties and taxes, among other features. The CRA will continue refining and expanding the functionality of this service.

Previous update - The functionality of MyBA was expanded in April and October of 2007 and April and October 2008. Additional enhancements are planned for 2009.

New update - In December 2008, the Transfer Payment option was added. In January 2009, View account balance Part II was introduced which added the option of viewing the last year balance from the payroll account. See item 1.3.3 for longer term enhancements.

1.1.3 - Completed:
Action item - The Government of Canada and the Government of Ontario recently signed an agreement to have the CRA administer corporation taxes on behalf of that province. The Corporate Tax Administration for Ontario (CTAO) initiative is expected to benefit hundreds of thousands of businesses throughout the province of Ontario. This initiative will be developed and implemented over several years.

Previous update - In June 2007, Bill 174 received Royal assent through the Ontario Legislature to implement the Taxation Act 2007, allowing the CRA to administer Ontario corporation income tax, corporation minimum tax, corporation capital tax, and the Ontario special additional tax on life insurance corporations, for tax years ending after 2008. In February 2008, the CRA began receiving combined federal and provincial instalment payments for the tax years ending in 2009 and will process single, harmonized returns for Ontario corporations in 2009. In January 2009, the CRA will become the single point of contact for all matters relating to Ontario provincial corporation income tax.

The CRA is also providing some services to Ontario for tax years ending before December 31, 2008. As of April 2008, the CRA assumed responsibility for the Ontario Ministry of Revenue’s (OMoR) tax audit and objections, rulings, and advisory functions.

New update - The CRA is now the single point of contact for all Ontario provincial corporation income tax matters. The processing of harmonized corporate tax returns commenced in April of 2009 and harmonized administration is now in full operation. Excellent horizontal management of the project brought about a smooth transition for Ontario corporate taxpayers and ensured cross functional alignment within the CRA.

1.1.4 - Completed:
Action item - The CRA will continue to coordinate its compliance activities and expand its risk management practices to minimize the disruption on small business taxpayers. For example, plans to introduce integrated enforcement teams and increase the coordination of federal and provincial audits under the Corporate Tax Administration for Ontario (CTAO) are well underway. Also, the CRA recently expanded its combined audit program, which reduces the inconvenience, and costs to small businesses by having a single auditor review the same records for both income tax and GST/HST purposes. We will build on these initiatives and others as part of our program process, giving due consideration to the needs of small businesses.

Previous update -As of April 3, 2008, CRA auditors began conducting integrated audits, examining both the federal and provincial returns during the same audit visit.

A two-year pilot of integrated enforcement teams conducting combined audits was completed March 31, 2008. The results of the pilot are still under evaluation. Decisions regarding the expansion of this pilot should be finalized by March 31, 2009.

New update - The concept of the integrated enforcement teams was to improve the coordination of our compliance activities from four different functional programs. The results of the pilot have been evaluated. A report has been prepared presenting an analysis of the results and recommendations for a future integrated approach. Decisions regarding the expansion of this pilot should be finalized by March 31, 2010.

1.1.5 - Completed:
Action item - The CRA will continue to work with the Department of Finance and our provincial and territorial partners to expand the adoption of the Business Number (BN) as a national business identifier. To date, the provinces of Nova Scotia, New Brunswick, British Columbia, and Manitoba have adopted the BN for their provincial programs.

Previous update - The province of Ontario is now using the BN as their identifier in over 30 programs. The Department of Finance has drafted legislation to enhance the CRA’s ability to exchange information with municipalities, Aboriginal Governments, boards, and commissions. In particular, this will assist the provinces of British Columbia and Manitoba who are actively working with their municipalities to adopt the BN.

New update - The legislation enhancing the information sharing powers of the CRA was enacted by Royal Assent on March 12, 2009, as part of Bill C-10. At this time, no municipalities have adopted use of the BN.

1.1.6 - Ongoing:
Action item - The CRA works closely with our provincial and territorial counterparts to identify ways to reduce the burden on small businesses. For example, the Ontario Ministry of Finance has adopted the practice of accepting the CRA's Canada Pension Plan/Employment Insurance rulings on the employee/employer relationship for purposes of administering their Health Tax. As a result, businesses avoid unnecessary work and the conflict of differing opinions at two levels of government.

Previous update - The CRA actively participates on the OMoR, Small Business Advisory Committee, the Canada Ontario Business Service Centre Managing Partners Board, and the Ontario Tax Liaison Group.

The OMoR and the CRA will discuss the possibility of the CRA taking on the rulings workload related to the Ontario Employer Health Tax. The CRA is willing and able to do so. If Ontario agrees, the CRA will be in a better position to pursue similar initiatives with other provinces.

New update - We are still working on an agreement with Ontario to share our rulings with them. It is hoped to have this agreement in place by March 31, 2010. At this time, Ontario has indicated that they are not interested in the CRA taking on their rulings workload.

Previous update - The Quebec region meets regularly with its provincial counterparts. A joint task force was created with Revenu Québec to define the various stages in the collection process and to identify the common steps that would help to harmonize and co-ordinate those activities. At the same time, a group will be created to share the regional audit plan, in order to improve risk management.

New update - Meetings are being held with Revenu Québec to share strategic approaches for audit, in order to improve risk management.

1.1.7 - Completed:
Action item - The CRA actively participates in initiatives to reduce the paperwork burden at both the federal government and CRA levels. For example, the CRA is an active member of Industry Canada’s joint public/private sector Advisory Committee on Paperwork Burden Reduction.

Previous update - The CRA contributed to the second Advisory Committee on Paperwork Burden Reduction (ACPBR) Progress Report published in May 2008.

The CRA was one of 13 federal agencies and departments participating in the Government of Canada 20% Burden Reduction Initiative coordinated by Industry Canada on behalf of the ACPBR.

New update - CRA will achieve a burden reduction rate of 24.2% once all identified reductions have been implemented. Some reductions are contingent on legislative amendments under the responsibility of the Department of Finance. CRA identified over 8,000 reductions to income tax and excise related forms, in order to achieve this rate.

1.1.8 - Completed:
Action item - The CRA will continue to work with Service Canada to identify ways of reducing the number of Pensionable and Insurable Earnings Review (PIER) reports generated to employers.

Previous update - Changes have been made to the system that identifies PIER discrepancies. These changes have significantly reduced the number of potential discrepancies being referred to employers via PIER reports.

The CRA is looking at having the T4 Desktop and Web form systems do a rudimentary check for CPP and EI contribution deficiencies when the T4 Information return is filed allowing filers to correct possible deficiencies, reducing potential PIER reports.

The CRA continues to look at ways to identify discrepancies in advance so as to reduce PIER reports.

New update - Starting in January 2010, the T4 Web forms and T4 Desktop online applications will complete deficiency verifications for CPP contributions and EI premiums, before a T4 return is transmitted. These preliminary checks will allow filers to correct possible deficiencies, reducing potential PIER reports.

1.2.8 - Completed:
Action item - The CRA will continue to work with the Department of Finance and small business stakeholders to identify simplification options that could reduce the compliance burden on small business taxpayers. This could include initiatives to simplify the tax provisions relating to automobile expenses and taxable benefits.

Previous update -Simplified calculations for taxable benefits and changes to supporting documentation for automobile expenses have been proposed and were provided to external stakeholders for comment.

The Department of Finance and the CRA partnered in commissioning a consulting firm to gather and report on suggestions for reducing the compliance burden from small business taxpayers. The suggestions are currently being analyzed.

In April 2008, the Department of Finance solicited comments from business associations representing Canadian small businesses. The ensuing suggestions are also being analyzed by the CRA.

New update - An analysis of the suggestions was undertaken in conjunction with the Department of Finance. Neither that department nor CRA identified any legislative changes required that would reduce the compliance burden.

Currently, the CRA is continuing their analysis of the suggestions that were of an administrative nature to see how we can improve our existing administrative practices and procedures.

On June 11, 2009, the CRA announced some significant changes to the administration of six taxable benefits via the Income Tax - Technical News Number 40. The changes reduce the administrative burden of calculating taxable benefits from gifts and awards, overtime meals, and allowances, automobile expenses and three other benefits. They increase the efficiency and effectiveness of payroll-related legislation for all stakeholders: employers, government, employees and the general public.

1.2.9 - Completed:
Action item - Based on feedback from small businesses and their representatives, the CRA will conduct periodic reviews of our administrative thresholds to ensure that these thresholds remain effective and appropriate.

Previous update -The thresholds relating to electronic filing of information returns and slips were reviewed and changed to allow more filers to use electronic filing.

GST thresholds were reviewed and changes were made where appropriate. .

New update - GST thresholds are reviewed regularly and a thorough review is currently being done as part of the Provincial Sales Tax Administration Reform (PSTAR) initiative.

In October 2009, the refund threshold for GST/HST returns that are filed electronically using GST/HST NETFILE or GST/HST TELEFILE was raised from $10,000 to $50,000. This will allow more businesses to file electronically.

Previous update -The CRA has proposed legislative changes that will decrease the required filing frequency of certain excise tax returns based on a threshold and risk analysis review.

New update - CRA officials are currently working with officials from the Department of Finance to draft the appropriate legislation.

1.3.3 - Ongoing:
Action item - Longer-term enhancements to My Business Account include allowing users to update the operating name of their business and business address, transfer payments from one period to another, as well as from one business program account to another, and view their employer remitter type, which affects the frequency of their payroll remittances.

Previous update - Enhancement of MyBA services is continuing. In the fall of 2008, the ability to transfer payments and view the status of GST/HST returns was added.

MyBA at www.cra.gc.ca/mybusinessaccount, now includes the ability to:

• manage business operating names;
• view banking information, payroll account transactions, payroll remitting requirements, and GST/HST return status;
• calculate future balances owing, including interest, for corporation, GST/HST, and other levies accounts;
• transfer payments within GST/HST accounts, corporation accounts, or other levies accounts; and,
• file most business-related returns.

The CRA is looking at potential future enhancements such as the ability to view interest transactions and the ability to transfer payments between business accounts.

The CRA continues to look at ways to better service businesses online.

New update - Services were further expanded in 2009 to include:

• 26 “Smartlinks” to help taxpayers with their account specific enquiries;
• the ability for charities to view their addresses; and,
• links to My Payment.

Planned changes for 2010 include:

• Tax Free Savings Account as a program account, whereby filers will download rejected individual records in order to resubmit corrections or cancellations. Users will also be able file TFSA returns and view their status;
• an instalment payment calculator for GST/HST and corporation tax accounts;
• the ability to request a close of a Business Number account; and,
• upgrades to the nil remittance feature for Payroll accounts.

Planned changes for My Business Account in January 2011 include expanding many of the features now available to payroll return (T4) filers to investment return (T5) filers.

1.3.4 - Ongoing:
Action item - The CRA will work with our provincial partners to increase the coordination and harmonization of federal and provincial business programs.

Previous update -The CRA has worked intensively with the OMoR on the transfer of corporation tax administration to the Agency, a large initiative demonstrating the CRA’s partnerships with provincial authorities.

The CRA has also partnered with the OMoR on common accounts where both governments are collecting debts. The team has conducted meetings with the provincial clients which have produced a coordinated approach to resolving the accounts and reduced duplication of effort. Information gathering and exchanges have been expedited due to the various system accesses the two organizations share.

New update - The implementation of a harmonized sales tax in Ontario and British Columbia on July 1, 2010, will represent another significant advancement in this area.

Focus 2: We will improve how and when we communicate with small businesses.

2.1.1 - Completed:
Action item - It is already a standard procedure to use plain language in CRA forms and publications, and so is soliciting feedback from users through sources such as, Your Opinion Counts, focus testing, and our Web comments mailbox. We continually work to achieve the correct balance between the use of plain language and the timely delivery of accurate legislative information. We will continue to monitor all feedback and strengthen existing processes. The CRA has employer representatives such as the Canadian Payroll Association enhance its communications by reviewing its brochures, publications and Web site on a regular basis to enhance their readability.

Previous update - CRA conducted extensive plain language and readability reviews on two selected business-related information products during the past year – information products relating to employment expenses, and employer information.

A select number of publications will be scheduled for this type of extensive review each year. The CRA continues to involve business representatives in the review of business‑related forms, publications, and Web site coverage. For example, the T2 Corporation Income Tax Guide was provided to the Canadian Federation of Independent Business for comment and payroll-related publications are regularly reviewed by the Canadian Payroll Association.

In 2008, business users were also consulted on the usability of the CRA Web site structure and labelling.

All feedback received through “Your Opinion Counts” and the Web comments mailbox is reviewed by the area responsible for the product in question. Since April 2008, 32 “Your opinion counts” suggestions and 96 Web comments have been received and reviewed.

New update - For the 2008 tax season, guide T4002, Business and Professional Income was revised to make it more user friendly for businesses. Forms T2124 and T2032, which were included in this guide, were combined into one form T2125, Statement of Business or Professional Activities for use by any business or professional.

2.1.2 - Completed:
Action item - The CRA will continue to review the most common errors made by small business taxpayers on their forms and returns to identify opportunities for improving content and layout.

Previous update - Common errors are routinely reviewed to understand where taxpayers have difficulty in complying with legislation and/or completing forms. The CRA then revises the information products and forms to improve the clarity of the information presented and the manner in which the forms capture required information.

New update - Reviews of common errors are also conducted on other types of business returns.

2.1.3 - Completed:
Action item - The CRA reviews our Web links and printed publications to improve the bundling of information, and to provide online links between relevant Web content for users.

Previous update - Web analysis is routinely conducted to improve Web users’ experience. The CRA has adopted a Publishing Content Management Solution to ensure consistency and appropriate bundling of information across product lines.

A more logically ordered, step-by-step component for payroll, GST/HST, and BN products is being developed for the CRA Web site to assist first time users in understanding their obligations.

New update - The review and update of our Web links and publications is a systematic and on‑going process within the areas of the CRA producing the majority of our public documents. More areas within the CRA are adopting similar approaches.

2.1.5 - Completed:
Action item - The CRA has improved the timeliness and accessibility of our information through the introduction of ““Smartlinks”. This technology allows Web users to access a CRA agent directly from our Web site. The agent can then help them navigate through the site or provide them with additional information.

Previous update - In order to improve the timeliness and accessibility of our information, “Smartlinks” were introduced to allow Web users to access a CRA agent directly from our Web site. The agent can then help users navigate through the site or provide them with additional information.

New update - In April 2009, MyBA “Smartlinks” were added to the “View Account Balance” page for Corporation income tax, GST/HST, payroll, and Other levies accounts.

2.1.9 - Completed:
Action item - The CRA recognizes the benefits of presenting information in a variety of formats and continues to explore new ways of doing so. We recently developed a series of questions and answers to communicate legislative changes related to the apprenticeship job creation tax credit and the deductibility of tradespersons’ tools. These were provided to CRA agents and posted to the CRA Web site.

Previous update - An “Important Notice” was directly mailed to approximately 4.6 million business addresses in December 2007 advising of the changes affecting them from the 2007 Budget and 2007 Economic Statement.

Dotto Tech, a national show featuring electronic services for small businesses, was commissioned to promote MyBA, Rep a client, Netfile, GST Netfile, and electronic payroll-related options. Segments aired in November 2007 and February 2008, and an additional segment is scheduled for early 2009.

In our ongoing effort to enhance our communications with the business community, the CRA is releasing time-sensitive tax tips. The tax tips provide the CRA with an additional way to communicate key information to businesses throughout the year, including enhancements to our electronic services.

The CRA is continuing to work with Industry Canada to provide links to specific information on the CRA Web site from the Canada Businesses Web site.

New update - Given the availability of electronic payment options and the accessibility of account information in My Business Account, and in order to reduce the paperwork burden on business, the CRA has reduced the frequency of the Statement of Arrears for business taxpayers and is exploring reducing the frequency of other statements.

2.1.10 - Completed:
Action item - Public information seminars are one of the CRA’s most effective tools for communicating with small businesses, and many of our outreach activities are conducted in collaboration with our provincial partners. In 2005-2006, the CRA delivered over 1,400 business-related seminars nationwide to 26,500 participants. In Ontario, over 200 joint PST and GST/HST seminars were delivered to 4,300 participants. We will continue to update our seminars to ensure that the information we provide remains relevant and timely. For example, we will be piloting an updated Small Business Information Seminar presentation in spring 2007.

Previous update - The CRA held approximately 1,800 business-related outreach events (seminars, trade shows, outreach visits, and speaking engagements) involving close to 44,000 participants in the 2007-2008 fiscal year.

New update - In 2008-2009, close to 1,900 outreach events were conducted involving 38,000 participants.

2.2.1 - Completed:
Action item - In 2007-2008, the CRA will review our business communication products to ensure that their content is relevant, appropriate, and presented in plain language. We will strengthen the existing processes to solicit feedback from small business stakeholders on our business publications. We will evaluate the forms most commonly used by small business taxpayers with a view to streamlining them, where possible, and making them more user friendly.

Previous update - A quality assurance process has been implemented to ensure content is relevant, appropriate, and written in plain language. This is supplemented by scheduled extensive plain language and readability reviews on selected business-related information products each year.

To achieve excellence in our written communications, CRA branches and regions identified cost-efficient ways and recommended actions to improve external communications. These are currently being reviewed in support of an Agency-wide approach.

As part of the Agency-wide approach to improve the quality of external business correspondence, reduction of paper burden is a key element of our action plan. We have conducted two reviews of business correspondence to date and have formed a working group to address issues.

New update - CRA conducted a review of all information products containing information on Capital Cost Allowance. Eight separate publications (intended for use by various segments including farming, fishing, and professionals), are being consolidated into one streamlined, easily accessible and user-friendly product.

2.2.2 - Completed:
Action item - The CRA will continue to focus on providing accurate and consistent responses to telephone enquires. For example, the CRA is developing a proposal to implement centres of expertise to respond to enquiries received on complex issues. We are also developing a strategy to strengthen our existing quality assurance program for telephone service.

Previous update - The Centre of Expertise proposal was completed in April 2008. This will allow routing of specific enquiries, which are sometimes complex or unusual, to officers explicitly trained to respond to the identified topics. The CRA currently has in place a centre of expertise specifically for enquiries related to the CTAO. Additional centres of expertise for certain complex general business enquiries will also be piloted commencing in December 2008.

Progress on strengthening call quality and accuracy through enhanced online data capture of agent accuracy assessments is also now occurring. The online format is a mandatory national tool that permits more timely and accurate information to be produced for the identification of training, procedural, and accuracy trends/gaps. The online call checklist provides reporting capability and has been functional since April 2008. It is a cornerstone in the strategy towards strengthening quality call assurance.

New update - Business enquiries involving the following topics are now routed to the centres of expertise where they are responded to by officers explicitly trained on these subject matters: eligible dividends, farming and fishing, and taxable benefits enquiries inclusive of automobile benefits, board and lodging, stock options, and clergy allowance.

2.2.3 - Completed:
Action item - We will expand the number of “Smartlinks” pages on our Web site.

Previous update - “Smartlinks” were initiated in 2004 with 76 business-related links. There are now 412 business-related “Smartlinks”.

“Smartlinks” have enabled approximately 23,000 Web users in year 2007/2008 and 13,400 Web users so far in the 2008/2009 year to speak to an enquires agent for assistance.

New update - In 2008/2009, there were 165,587 calls answered by “Smartlinks” agents. From April 1 to September 18, 2009, there were 6419 calls answered by “Smartlinks” agents.

2.2.6 - Completed:
Action item - The CRA will continue our efforts to reach out to new small businesses. We will modify our existing outreach activities and local business seminars to ensure that they remain current and relevant. We will continue to increase our visibility in the small business community through outreach activities, community visits, and involvement in tradeshows. We will conduct five new pilot projects in Ontario that focus on identifying and contacting new small businesses to help them understand their tax responsibilities and inform them about how to access and use CRA services. The CRA will explore the feasibility of partnering with certain provinces to include trade schools in its outreach activities. Our goal is to have a framework in place by March 2008.

Previous update - In the 2007/2008 year, the Underground Economy Outreach Program conducted 149 community visits. In the 2008/2009 year, Underground Economy Outreach activities include community visits, wharf visits, home and trade shows, public speaking engagements, and individual visits.

New update - The completed pilot projects led to additional planned outreach to complement a rigorous program of outreach and education throughout the Ontario Region. Educational seminars, community visits, and business venues are being undertaken with other levels of government, including the Canada Ontario Business Service Centres, ensuring small businesses have access to a wide range of information to better meet their needs. Best practices and key findings have been incorporated into the Ontario Regional Small Business Plan to enhance our present efforts to build productive relations with small business and related associations.

Previous update - The CRA Atlantic region initiated a three year New Registrant Outreach initiative that has officers making educational visits to approximately 50% of new GST/HST registrants. Post-initiative measurements will show whether these visits are effective in increasing taxpayers understanding and awareness of their responsibilities and our services.

To ensure better co-ordination and harmonization of outreach, the Quebec region has developed local action plans for each Tax Services Office (TSO) and will share these with Revenu Québec. Seminars have been developed in the Quebec region for select industries, such as the taxi, daycare, and beauty salon sectors. Other seminars will be developed based on the outreach action plans of each TSO in the region.

The TSOs have also created partnerships with federal and provincial agencies, such as the Economic Development Agency of Canada, local development centres, and with associations such as the Association de planification fiscale et financière and the Ordre des médecins, etc., to inform them of CRA services and electronic products.

In conjunction with the Federal/Provincial/Territorial Underground Economy Working Group, the CRA completed a framework in March 2008 for outreach in trade schools. A program has been initiated for trade schools in British Columbia, Ontario, and New Brunswick to disseminate information on the tax system and the pitfalls of the underground economy to selected construction trades. Material is anticipated to roll‑out in May 2009.

New update -Concept testing identified some required revisions. Testing of the revisions has been conducted, with roll-out of material now scheduled for March 2010.

A Web site called Trade Links has been developed that consolidates tools and resources for people entering trades in the construction sector. Subtle messaging throughout the Web site educates on the drawbacks and implications of working in the underground economy. The site has been focus tested and was well received. Launch and promotion is planned for March 2010.
The CRA is working with the provinces of Ontario and British Columbia to ensure that the changes are communicated to the public.

2.2.8 - Completed:
Action item - The CRA will partner with key small business and professional advisor associations to identify sources of burden and will work with them to leverage our communication and outreach activities.

Previous update - The CRA regularly discusses sources of burden with small business and professional organizations including the Canadian Federation of Independent Business, the Canadian Payroll Association, the Canadian Bookkeepers Association, the Certified General Accountants Association, the Canadian Bar Association, and members of the ACPBR, both formally and informally.

The CRA has reviewed submissions on burden reduction made to Finance Canada by small business and professional associations.

CRA representatives attend annual conferences held by the various professional organizations and have been invited to speak to their memberships.

The CRA has worked with professional organizations to provide input on surveys and information to distribute to their members as well as consulting with them on new CRA initiatives.

New update - We continue to use and rely on these partnerships to better address compliance burden issues.

2.3.1 - Completed:
Action item - We will review the results of our “Smartlinks” program to gain a better understanding of the business user’s experience and needs, and improve the content and organization of our Web site accordingly.

Previous update - When a “Smartlinks” user has spoken with a CRA agent, the user is surveyed on the clarity of Web site information, or navigational difficulties in finding the information needed.

Analysis of each “Smartlink” is scheduled once a year and used not only to adjust the “Smartlinks” placement, but also to improve the content, presentation and architecture of information on the CRA Web site. Several factors are taken into consideration when determining where to place, or remove “Smartlinks” such as topic complexity, topics that support new programs, compliance-related topics, relative importance of topics to taxpayers, and recommendations from call centre agents and authors based on enquiries.

New update - Web sites were revised or enhanced accordingly based on the analysis and recommendations.

2.3.2 - Completed:
Action item - We will work with internal and external stakeholders to determine the desirability of implementing “Smartlinks” within the secure web pages of My Account and My Business Account. This would give taxpayers direct access to a CRA agent from within these secure channels, and allow the agent to respond to questions related to their specific account.

Previous update - The CRA will pilot “Smartlinks” in transactional applications, such as MyBA, beginning in April 2009.

New update - The CRA has implemented 26 My Business Account “Smartlinks” to help assist taxpayers with their account specific enquiries. We are currently working with stakeholders to implement “Smartlinks” on the My Account application for individual taxpayers in 2010.

Focus 3: We will make burden reduction systemic within the CRA.

3.1.2 - Completed:
Action item - The CRA participated in the development of the Statistics Canada Survey of Regulatory Compliance Costs. The initial survey was conducted in late 2006 as part of the federal government’s Paperwork Burden Reduction Initiative. The CRA will continue to be involved in this triennial survey.

Previous update - Data from the Statistics Canada Survey of Regulatory Compliance Costs was used to populate the performance indicators in the CRA’s Performance Measurement Framework for Compliance Burden.

New update - The CRA provided input to the Statistics Canada 2009 survey.

3.1.3 - Completed:
Action item - The CRA will review the reduction initiatives of other countries or other levels of government in order to identify potential CRA strategies.

Previous update - The CRA continues to monitor burden reduction activities of other countries. CRA officials have met with tax officials from the United States, Australia, the United Kingdom, and New Zealand to examine best practices in electronic services and burden reduction. In 2007, the CRA contributed to a Taxpayer Services Sub-group Organization for Economic Co-operation and Development (OECD) report, Programs to Reduce the Administrative Burden of Tax Regulation in Selected Countries, published in January 2008.

New update - As reviews of other countries’ reduction initiatives are completed, developments and practices meriting consideration are shared throughout the CRA.

3.1.4 - Ongoing:
Action item - The CRA will continue to conduct research and review the findings of various small business studies to better understand the characteristics, behaviour, and needs of small business taxpayers. The CRA will validate our research results by comparing them against external sources such as studies conducted by other federal departments and external groups such as, the Canadian Federation of Independent Business, the Conference Board of Canada and the Canadian Payroll Association.

Previous update - Planned research by the CRA includes:

• Testing of users and potential users on a new login process for certain CRA Web applications; and
• Review of MyBA with respect to preferred information and services for payroll related users.

New update - Testing of the new login process was completed and changes were in effect October 5, 2009.

During the fall of 2008, the CRA partnered with The Canadian Payroll Association (CPA) to hold a series of consultations on CRA electronic payroll services. These consultations were held in conjunction with scheduled CPA learning events. Feedback on existing designs and potential service enhancements is being used to support planned changes to the My Business Account portal and the development of future service options.

The Represent a Client service led a round of outreach activities in the spring of 2009 with small groups of representatives to validate that the online tools and information made available facilitate voluntary compliance by being timely, accurate, useful and accessible.

Previous update - The CRA has monitored trends in the underground economy for the construction and hospitality sectors and has studied best practices in addressing the cash sectors of the underground economy.

New update - The report on the Case Study on Small Business is to be released to the appropriate CRA executive committee later in 2009.

3.2.3 - Completed:
Action item - The CRA will ensure that compliance burden reduction becomes a fundamental element of its forms review process and in the development of its administrative procedures. This could include creating a Burden Assessment Checklist that would be used when CRA business forms are introduced or revised.

Previous update - Burden reduction considerations have been incorporated into forms’ reviews. Standard text is in all business-related circulation documents to stakeholders requesting that forms and publications be reviewed from a burden reduction perspective.

A quality assurance process, focusing on compliance burden reduction, among other things, was developed that includes spot checks on certain features and content; a data base of common and consistent text; establishing consistent location and presentation of common elements on forms; and checklists for form revision and development. Focusing on these areas will result in easier to complete forms.

The CRA is continuing to make burden reduction systemic. Initiatives such as requiring front-end burden impact analyses for all major investment projects, assessing burden impact during the internal audit and program evaluation functions, incorporating a burden reduction commitment into appropriate executive performance agreements, educating and increasing awareness of burden reduction among all employees, and engaging the public with mechanisms to make suggestions related to burden reduction are currently being considered.

New update - A Burden Assessment Checklist has been developed for use with all public forms and is awaiting a governance structure decision before implementation. Burden impact analysis for all major projects is now required as part of the resource investment request process.Burden reduction commitments have been incorporated in executive performance agreements in appropriate areas of the CRA.

3.3.1 - Completed:
Action item - We will measure and report on our progress in reducing the compliance and paperwork burden in our annual report to Parliament.

Previous update - The release of a Benchmark Report outlining the basis with which to measure progress in terms of time and costs of burden reduction is anticipated by the end of 2008.

The CRA Annual Report to Parliament for 2007/2008 included the first elements of progress in reducing the compliance and paperwork burden reduction.

New update - The Measuring the Small Business Compliance Burden – Benchmark Report has been completed and is currently available both on the CRA Web site and in paper format.

Following this report, the Measuring the Small Business Compliance Burden – Progress Report is to be released at the end of 2009. This report will measure our progress in terms of time and cost burden, against the benchmarks established in the Benchmark Report.

3.3.3 - Completed:
Action item - We will validate our performance indicators and refine these, as necessary.

Previous update - As systems change, and the CRA's approach to performance measurement evolves, measures and data will be updated accordingly. This will allow refinement of the Performance Measurement Framework for Compliance Burden and close alignment with the CRA's Strategic Planning and Reporting Framework.

New update - Measures and data will be updated as required.

Date modified:

2010-08-16