Departmental Performance Reports - 2011-2012 Departmental Performance Reports - Sources of Respendable Non-Tax Revenue and Non-Respendable Non-Tax Revenue

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Sources of Respendable Non-Tax Revenue and Non-Respendable Non-Tax Revenue

By virtue of its mandate, the Canada Revenue Agency (CRA) is responsible for collecting tax revenue as described earlier in the Audited Financial Statements – Administered Activities. As detailed below, non-tax revenues are further divided between respendable and non-respendable. Respendable non-tax revenues are received by the CRA for services provided to individuals or organisations that have not been funded by Parliament, e.g., costs recovered under Tax Collection Agreements with the provinces. Non-respendable non-tax revenues are those received by the CRA for which the CRA does not have the authority to re-spend, e.g., recovery of employee benefits costs.

Respendable Non-Tax Revenue

(in thousands of dollars)
Program Activity
2009-2010
Actual
2010-2011
Actual
2011-2012
Planned Revenues
2011-2012
Total Authorities
2011-2012
Actual
Taxpayer and Business Assistance
47,763
48,887
45,135
49,494
49,494
Assessment of Returns and Payment Processing
59,642
46,426
43,412
50,189
50,189
Accounts Receivable and Returns Compliance
133,680
136,393
129,365
142,019
142,019
Reporting Compliance
12,618
17,713
15,024
22,593
22,593
Appeals
15,581
15,991
13,744
15,842
15,842
Benefit Programs
2,671
23,841
19,479
28,317
28,317
Internal Services
242,918
263,037
277,508
252,354
252,354
Taxpayers' Ombudsman
-
-
-
-
-
Total
514,872
552,289
543,666
560,808
560,808
Respendable Non-Tax Revenue pursuant to Section 60 of theCanada Revenue AgencyAct (cash receipts)
Refund of Previous Year's Expenditures
786
844
786
906
906
Income Tax Ruling Fees Footnote 1
1,531
1,997
2,000
1,582
1,582
Advance Pricing Agreement
849
(33)
825
415
415
Other Services of a Regulatory Nature
22
17
29
55
55
Administration of Provincial Programs Footnote 2
64,845
102,397
82,763
119,261
119,261
Other Services of a Non-Regulatory Nature
324
332
427
340
340
Sales of Goods and Information Products
120
120
120
130
130
Other Fees & Charges
204
147
177
813
813
Services to Other Government Departments Footnote 3
155,163
153,210
154,663
137,932
137,932
Sub-total
223,844
259,031
241,790
261,434
261,434
Less: Amounts Recovered on behalf of Other Government Departments Footnote 4
9,924
13,913
11,102
15,975
15,975
Total Respendable Non-Tax Revenue pursuant to Section 60 of the Canada Revenue Agency Act (cash receipts)
213,920
245,118
230,688
245,459
245,459
Proceeds from the Disposal of Surplus Crown Assets
111
196
-
165
165
Revenues credited to Vote 1
Canada Pension Plan administration work
133,774
135,688
137,939
138,828
138,828
Employment Insurance administration work
167,067
171,287
175,039
176,355
176,355
Total Revenues credited to Vote1
300,841
306,975
312,978
315,183
315,183
Total Respendable Non-Tax Revenue
514,872
552,289
543,666
560,808
560,808
Note: Numbers may not add up due to rounding.
Footnote 1: CRA charges taxpayers (based on a regulated user fee) for providing tax rulings in advance of a transaction taking place (to provide tax certainty).
Footnote 2: Comprised mainly of an administration fee charged to the provinces for recoveries provided under the tax collection agreements and other provincial cost recovery initiatives e.g., Administration of the Corporate Tax in Ontario, provincial benefit programs, and refund setoffs.
Footnote 3: Comprised mainly of information technology services provided to the Canada Border Services Agency ($131M).
Footnote 4: Comprised of amounts recovered on behalf of Treasury Board of Canada Secretariat (e.g., contributions to Employee Benefit Plans).

Non-Respendable Non-Tax Revenue

Footnote 1 , Footnote 2

(in thousands of dollars)
Program Activity
2009-2010
Actual
2010-2011
Actual
2011-2012
Planned Revenues
2011-2012
Actual
Taxpayer and Business Assistance
8,395
8,596
8,925
8,670
Assessment of Returns and Payment Processing
10,043
9,597
10,929
10,185
Accounts Receivable and Returns Compliance
22,108
22,470
23,346
23,385
Reporting Compliance
2,853
4,705
3,192
5,998
Appeals
3,729
3,232
3,915
3,038
Benefit Programs
261
2,837
292
3,609
Internal Services
8,287
8,233
8,685
7,827
Taxpayers' Ombudsman
-
-
-
-
Total Non-Respendable Non-Tax Revenue
55,676
59,670
59,284
62,712
Details of Non-Respendable Non-Tax Revenue
Sales of goods and services:
Public building and property rental, lease and use of public property
88
45
88
Other fees and charges:
Recovery of employee benefit costs
53,248
57,986
56,857
61,242
Miscellaneous
2,340
1,639
2,340
1,470
Total Non-Respendable Non-Tax Revenue
55,676
59,670
59,284
62,712
Footnote 1: This table reflects the approach taken in the CRA's Audited Financial Statements where a clear distinction is made between Agency activities and administered activities. Interest and penalties collected for personal, corporate and other taxes, which are part of the CRA's administered activities rather than CRA's activities, are excluded.
Footnote 2: Following a modification to the Treasury Board Accounting Standard 1.2 issued in March 2011, Non-Respendable Non-Tax Revenues, which were shown in previous Reports, cannot be used to discharge the CRA's liabilities. As a result, Non-Respendable Non-Tax Revenues are considered to be earned on behalf of the Government of Canada. Therefore, commencing in 2010-2011, the net cost of operations will not be reduced by the Non-Respendable Non-Tax Revenues.

User Fees/External Fees

In the 2009-2010 Annual Report, the Canada Revenue Agency indicated its plans to create a user fee policy instrument. As a first step in that plan, the CRA developed and introduced in 2011-2012 new Directives on Costing and on Cost Recovery and Charging that provide general direction and requirements on charging practices and processes. Work is now underway to review existing procedures and instructions related to how fees are determined, applied and managed to ensure they are complete and relevant.

User Fees Act – Advance Income Tax Ruling Fee

A. User Fee: Advance Income Tax Ruling Fee

Fee Type: Regulatory (R)

Fee Setting Authority: Financial Administration Act – 19(b)

Date Last Modified: 2000-2001

Performance Standards: The key service standard target is to issue advance income tax rulings to taxpayers within an average of 60 calendar days of receipt of all essential information.

Performance Results: Actual 2011-2012 results: 106 days

Where a delay is unavoidable, clients are contacted and notified of the delays. After completing a comprehensive study in late 2010 of its performance in this area, the Canada Revenue Agency revised its service standard to issue advance income tax rulings within 90 business days of receipt of all essential information from the client. This new service standard will take effect at the start of the 2012-2013 fiscal year.

(in thousands of dollars)
2011-2012
Forecast Revenue
2011-2012
Actual Revenue
2011-2012
Full Cost
Planning Years
Fiscal Year
Planning Years
Forecast Revenue
Planning Years
Estimated Full Cost
2,000
1,582
3,083
2012-2013
2,000
3,083
2013-2014
2,000
3,083
2014-2015
2,000
3,083

B.Other Information:

Policy on Service Standards for External Fees – Advance Income Tax Ruling Fee

A. External Fee: Advance Income Tax Ruling Fee

Service Standard: The key service standard target is to issue advance income tax rulings to taxpayers within an average of 60 calendar days of receipt of all essential information.

Performance Results: Actual 2011-2012 results: 106 days

Where a delay is unavoidable, clients are contacted and notified of the delays. After completing a comprehensive study in late 2010 of its performance in this area, the Canada Revenue Agency revised its service standard to issue advance income tax rulings within 90 business days of receipt of all essential information from the client. This new service standard was to take effect at the start of the 2012-2013 fiscal year.

Stakeholder Consultation: Client feedback is largely received informally during the CRA's attendance at major tax conferences. Generally, there is a very high degree of satisfaction with the quality of advance income tax rulings.

B. Other Information:

User Fees Act – Taxation Statistical Analyses and Data Processing Fee

A.User Fee: Taxation Statistical Analyses and Data Processing Fee

Fee Type: Regulatory (R)

Fee Setting Authority: Financial Administration Act-19(b)

Date Last Modified: 1992

Performance Standards: Provide statistical data to taxpayers within an average of 30 calendar days of receipt of all essential information.

Performance Results: Average time to provide the requested data is 17 days

(in thousands of dollars)
2011-2012
Forecast Revenue
2011-2012
Actual Revenue
2011-2012
Full Cost
Planning Years
Fiscal Year
Planning Years
Forecast Revenue
Planning Years
Estimated Full Cost
17
54
95
2012-2013
59
95
2013-2014
59
95
2014-2015
59
95

B.Other Information:

Policy on Service Standards for External Fees – Taxation Statistical Analyses and Data Processing Fee

A.External Fee: Taxation Statistical Analyses and Data Processing Fee

Service Standard: Provide statistical data to taxpayers within an average of 30 calendar days of receipt of all essential information.

Performance Results: Average time to provide the requested data was 17 days.

Stakeholder Consultation: Client satisfaction surveys were sent to external clients. The responses received indicated a satisfaction rate of 67%.

B.Other Information:

User Fees Act – Access to Information Processing Fee

A.User Fee: Access to Information Processing Fee

Fee Type: Other Products and Services (O)

Fee Setting Authority: Access to Information and Privacy Act

Date Last Modified: 1992

Performance Standards: Processing time of 30 calendar days for the Access to Information Act, with no time limit for the extension period. The Canada Revenue Agency's (CRA) internal processing standard is to complete 90% of filed requests within the legislative deadline.

Performance Results: 62% of the requests made under the Access to Information Act were processed within the legislative timeframe. The CRA was able to increase its capacity and launched the summary lines on its website. In 2012-2013, the CRA will continue to improve its performance to meet its legislative obligations with regards to the Access to Information Act.

(in thousands of dollars)
2011-2012
Forecast Revenue
2011-2012
Actual Revenue
2011-2012
Full Cost
Planning Years
Fiscal Year
Planning Years
Forecast Revenue
Planning Years
Estimated Full Cost
46
46
10,626
2012-2013
64
11,317
2013-2014
64
7,631
2014-2015
64
7,621
B. Other Information: It is the Canada Revenue Agency's practice to waive reproduction fees where the total owing per amount is less than $25.

Policy on Service Standards for External Fees – Access to Information Processing Fee

A.External Fee: Access to Information Processing Fee

Service Standard:

Processing time of 30 calendar days for the Access to Information Act, with no time limit for the extension period.
The Canada Revenue Agency's (CRA) internal processing standard is to complete 90% of filed requests within the legislative deadline.

Performance Results: 62% of the requests made under the Access to Information Act were processed within the legislative timeframe. The CRA was able to increase its capacity and launched the summary lines on its website. In 2012-2013, the CRA will continue to improve its performance to meet its legislative obligations with regards to the Access to Information Act.

Stakeholder Consultation: The service standard is established by the Access to Information Act and the Access to Information Regulations. Consultations with stakeholders were undertaken for amendments done in 1986 and 1992.

B. Other Information: It is the Canada Revenue Agency's practice to waive reproduction fees where the total owing per amount is less than $25.

Details on Project Spending

(in thousands of dollars)
Initiative Name
2010-2011
Actual
Prior Years' Expenditures to March 31, 2011
2011-2012
Planned Spending
2011-2012
Actual Spending
Assessment and Benefit Services Branch
Secure Channel - External Credential Management Services
1,280
3,911
159
164
Secure Online Services - eDocuments
233
233
835
506
Secure Online Services - eDelivery
370
370
1,517
1,299
Secure Online Services - ePayment
-
-
245
223
Benefit Renewal
1,298
1,298
6,282
4,763
Individual Identification Renewal
8,274
31,996
4,193
3,499
Partnership Information Returns
-
-
1,300
540
T1 Database Conversion
-
-
1,099
726
T1 Systems Redesign
-
-
5,364
4,664
T3 Redesign
2,393
4,718
1,275
1,275
T3 - Matching Program
-
-
1,724
1,534
Sub-total
13,848
42,526
23,993
19,193
Taxpayer Services and Debt Management Branch
Integrated Revenue Collections - Phase I
592
103,977
600
517
Integrated Revenue Collections - Phase II
8,093
15,235
9,902
7,555
Payroll Deductions Accounting and Collections Renewal and Migration
5,270
18,244
759
663
Sub-total
13,955
137,456
11,261
8,735
Compliance Program Branch
Compliance Systems Redesign Footnote 1
14,763
97,800
3,800
3,810
Sub-total
14,763
97,800
3,800
3,810
Appeals Branch
Relief Inventory Management
-
-
267
187
Taxpayer Relief Business Transformation
599
1,189
249
308
Sub-total
599
1,189
516
495
Information Technology Branch
Application Sustainability
4,391
10,071
5,245
4,860
Common Look and Feel - 2.0 Web Accessibility
-
-
4,178
1,114
Data Centre Co-Location Project
166
1,435
1,471
1,076
Corporate Administrative Systems Sustainability
7,532
30,082
2,600
2,400
Internet Protocol Version 6
-
-
300
299
Network Access Control, Anti-Spyware and Host Intrusion
541
1,212
654
440
Network Encryption
45
102
117
112
Encryption of Back-Up Tapes
204
257
246
236
Sub-total
12,879
43,159
14,811
10,537
Finance and Administration Branch
Identity and Access Management Phase I
1,981
1,981
2,541
2,432
Identity and Access Management Phase II
973
1,438
1,317
1,375
Identity and Access Management Phase III
-
-
180
119
National Audit Trail System
-
-
192
442
Sub-total
2,954
3,419
4,230
4,368
Legislative Policy and Regulatory Affairs Branch
Registered Plans Application Suite (ESP)
876
876
290
288
Sub-total
876
876
290
288
Strategy and Integration Branch
Electronic Document Management Preparation
1,316
1,662
612
334
Sub-total
1,316
1,662
612
334
Total Footnote 2
61,190
328,087
59,513
47,760
Footnote 1: Prior Years' Expenditures of Compliance Systems Redesign include Enterprise Work Management costs.
Footnote 2: This table reports only on projects with 2011-2012 Planned and Actual Spending.

Details on Transfer Payment Programs

Two transfer payment programs with payments in excess of $5 million were administered by the Canada Revenue Agency in 2011-2012. These are:

  • Children's Special Allowance Payments (Statutory); and
  • Disbursements to the Provinces under the Softwood Lumber Products Export Charge Act, 2006 (Statutory)

Children's Special Allowance Payments (Statutory)

Start Date: Aug. 28, 1995 Footnote 1

End Date: Ongoing

Description of Transfer Payment Program: Tax-free monthly payments made to agencies and foster parents who are licensed by provincial or federal governments to provide for the care and education of children under the age of 18 who physically reside in Canada and who are not in the care of their parents. Children's Special Allowance (CSA) payments are equivalent to Canada Child Tax Benefit payments. CSA payments are governed by the Children's Special Allowance Act which provides that this allowance be paid out of the Consolidated Revenue Fund.

Strategic Outcome: Eligible families and individuals receive timely and correct benefit payments

Results Achieved: Monthly payments were made to 276 agencies and foster parents on behalf of 56,106 children. Payments were issued on schedule, no delays were reported.

Program Activity: Benefit Programs

(in thousands of dollars)
2009-2010
Actual Spending
2010-2011
Actual Spending
2012
Planned Spending
2012
Total Authorities
2012
Actual Spending
2012
Variance(s) Planned/Actual
Total Grants
Total Contributions
Total Other Transfer Payments Footnote 2
215,264
222,438
227,000
223,546
223,546
3,454
Total
215,264
222,438
227,000
223,546
223,546
3,454

Comment(s) on variance(s): N/A

Significant Evaluation Findings and URL(s) to Last Evaluation(s): N/A

Footnote 1: Responsibility for CSA Statutory Vote payment was transferred effective August 28, 1995 from Human Resources and Social Development Canada (P.C. Order 1995-342)

Disbursements to Provinces under the Softwood Lumber Products Export Charge Act, 2006 (Statutory)

Start Date: October 12, 2006

End Date: October 12, 2015 (pending approval of legislation)

Description of Transfer Payment Program: The export charge, to be levied by Canada on exports of softwood lumber products to the United States, is collected and administered by the Canada Revenue Agency with support from the Department of Foreign Affairs and International Trade. Under the Softwood Lumber Products Export Charge Act, 2006, the CRA is responsible for making statutory disbursements to the provinces of the charge collected over the course of the application of the Softwood Lumber Agreement, 2006. These disbursements are reduced by several factors: refunds paid to the industry, costs for the administration and implementation of the Agreement and the Act as well as the costs incurred for certain litigation resulting from the Agreement or Act. The Act applies to the following regions: British Columbia Interior, British Columbia Coastal, Alberta, Saskatchewan, Manitoba, Ontario and Quebec. Exports from the remaining provinces and territories are excluded.

Strategic Outcome: Taxpayers meet their obligations and Canada's revenue base is protected

Results Achieved: Disbursements will continue on a quarterly basis until the termination of the Agreement, unless lumber market prices increase to the point where no export charge is applicable for that period.

Program Activity: Taxpayer and Business Assistance

(in thousands of dollars)
2009-2010
Actual Spending
2010 -2011
Actual Spending
2011-2012
Planned Spending
2011-2012
Total Authorities
2011-2012
Actual Spending
2011-2012
Variance(s) Planned/Actual
Total Grants
–
–
–
–
–
–
Total Contributions
–
–
–
–
–
–
Total Other Transfer Payments Footnote 1
205,545
220,735
140,000
213,871
213,871
(73,871)
Total
205,545
220,735
140,000
213,871
213,871
(73,871)

Comment(s) on variance(s):N/A

Significant Evaluation Findings and URL(s) to Last Evaluation(s):N/A

Footnote 1: Other Transfer Payments are transfer payments based on legislation or an arrangement that normally includes a formula or schedule as one element used to determine the expenditure amount. However, once a payment is made, the recipient may redistribute the funds among several categories of expenditure in the arrangement.

Date modified:
2012-11-08