2013-14 Report on Plans and Priorities

Statement of management responsibility

We have prepared the accompanying future-oriented financial statements of the Canada Revenue Agency (CRA) according to the accounting principles consistent with those applied in preparing the financial statements of the Government of Canada. Significant accounting policies are set out in Note 4 to the financial statements. The future-oriented financial statements are submitted for Part III of the Estimates (Report on Plans and Priorities). The information will also be presented in the CRA's Departmental Performance Report to compare with actual results.

Management is responsible for the integrity and objectivity of the information contained in the future-oriented financial statements and for the process of developing assumptions. Assumptions and estimates are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in the CRA's mandate and strategic objectives. Much of the future-oriented financial information is based on these assumptions, best estimates, and judgment and gives due consideration to materiality. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. However, as with all such assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

The actual results achieved for the fiscal years covered in the accompanying future-oriented financial statements will vary from the information presented and the variations may be material.

Approved by:

Andrew Treusch
Commissioner of Revenue and
Chief Executive Officer

Filipe Dinis
Chief Financial Officer and Assistant Commissioner, Finance and Administration

Ottawa, Ontario
February 1, 2013

Canada Revenue Agency
Future-oriented Financial Statements – Agency Activities

Canada Revenue Agency
Future-oriented Statement of Financial Position – Agency Activities
as at March 31
(in thousands of dollars)

	2013	2014
LIABILITIES
Accrued salaries	43,461	69,555
Accounts payable and accrued liabilities (Note 6)	168,029	169,682
Vacation pay and compensatory leave	182,878	182,779
Employee severance benefits (Note 7c)	527,316	495,352
Total liabilities	921,684	917,368
Financial assets
Cash	85	85
Due from the Consolidated Revenue Fund	172,004	182,539
Accounts receivable and advances (Note 8)	7,515	7,677
Total financial assets	179,604	190,301
Agency net debt	742,080	727,067
Non-financial assets
Prepaid expenses	13,083	13,214
Tangible capital assets (Note 9)	385,885	404,764
Total non-financial assets	398,968	417,978
Agency net financial position	343,112	309,089
Contingent liabilities (Note 13)
The accompanying notes are an integral part of these future-oriented financial statement.

Canada Revenue Agency
Future-oriented Statement of Operations and Agency Net Financial Position – Agency Activities
for the year ended March 31
(in thousands of dollars)

	2013	2014
Expenses (Note 10)
Internal services	1,370,431	1,137,648
Reporting compliance	1,247,166	1,215,133
Assessment of returns and payment processing	740,233	704,900
Accounts receivable and returns compliance	689,107	675,935
Taxpayer and business assistance	368,433	361,730
Appeals	253,992	253,298
Benefit programs	164,643	164,284
Taxpayers' Ombudsman	3,556	3,673
Total expenses	4,837,561	4,516,601
Non-Tax Revenues (Note 11)
Internal services	216,026	212,026
Reporting compliance	25,326	43,779
Assessment of returns and payment processing	56,698	56,112
Accounts receivable and returns compliance	158,285	160,068
Taxpayer and business assistance	55,500	55,721
Appeals	18,161	18,995
Benefit programs	42,597	38,474
Revenues earned on behalf of Government	(63,865)	(68,209)
Total non-tax revenues	508,728	516,966
Net cost of operations before government funding	4,328,833	3,999,635
Government funding
Net cash to be provided by the Government of Canada	4,106,076	3,601,591
Change in due from the Consolidated Revenue Fund	(3,847)	10,535
Services to be provided without charge from other government agencies and departments (Note 12)	428,027	421,532
Total government funding	4,530,256	4,033,658
Operating surplus after government funding	(201,423)	(34,023)
Agency net financial position - Beginning of year	544,535	343,112
Agency net financial position - End of year	343,112	309,089
The accompanying notes are an integral part of these future-oriented financial statement.

Canada Revenue Agency
Future-oriented Statement of Change in Agency Net Debt – Agency Activities
for the year ended March 31
(in thousands of dollars)

	2013	2014
Operating surplus after government funding	(201,423)	(34,023)
Change in tangible capital assets
Acquisition of tangible capital assets (Note 9)	68,520	107,759
Amortization of tangible capital assets (Note 9)	(79,119)	(82,793)
Net loss on disposal/write-off of tangible capital assets	(7,452)	(6,087)
Total change in tangible capital assets	(18,051)	18,879
Change in prepaid expenses	130	131
Net decrease in agency net debt	(219,344)	 (15,013)
Agency net debt - Beginning of year	961,424	742,080
Agency net debt - End of year	742,080	727,067
 The accompanying notes are an integral part of these future-oriented financial statement.

Canada Revenue Agency Future-oriented Statement of Cash Flows – Agency Activities
for the year ended March 31
(in thousands of dollars)

	2013	2014
OPERATING ACTIVITIES
Net cost of operations before government funding	4,328,833	3,999,635
Items not affecting cash
Amortization of tangible capital assets (Note 9)	(79,119)	(82,793)
Net loss on disposal/write-off of tangible capital assets	(7,452)	(6,087)
Services to be provided without charge from other government agencies and departments (Note 12)	(428,027)	(421,532)
Change in financial assets other than due from the Consolidated Revenue Fund	(859)	162
Change in prepaid expenses	130	131
Change in liabilities	224,050	4,316
Cash used by operating activities	4,037,556	3,493,832
Capital investing activities
Acquisition of tangible capital assets funded by current year appropriations (Note 5b)	67,635	103,985
Acquisition of tangible capital assets not funded by current year appropriations	885	3,774
Cash used by capital investing activities	68,520	107,759
Net cash to be provided by the Government of Canada	4,106,076	3,601,591
The accompanying notes are an integral part of these future-oriented financial statement.

Notes to the Future-oriented Financial Statements – Agency Activities

1. Authority and objectives

The Canada Revenue Agency (CRA) is an agent of Her Majesty in right of Canada under the Canada Revenue Agency Act. The CRA is a departmental corporation named in Schedule II of the Financial Administration Act and reports to Parliament through the Minister of National Revenue.

The mandate of the CRA is to support the administration and enforcement of tax legislation as well as other related legislation. The CRA provides support, advice, and services by:

(a) supporting the administration and enforcement of program legislation;

(b) implementing agreements between the Government of Canada or the CRA and the government of a province, territory, or other public body performing a function of government in Canada to carry out an activity or administer a tax or program;

(c) implementing agreements or arrangements between the CRA and departments or agencies of the Government of Canada to carry out an activity or administer a program; and

(d) implementing agreements between the Government of Canada and First Nations governments to administer a tax.

The CRA collects revenues, including income and sales taxes and employment insurance premiums, administers tax legislation, delivers a number of social benefit programs to Canadians for the federal, provincial, territorial, and First Nations governments, and collects amounts, including Canada Pension Plan contributions, for other groups or organizations. It is responsible for administering and enforcing of the following acts or parts of acts: the Air Travellers Security Charge Act, the Canada Revenue Agency Act, the Children's Special Allowances Act, Part V.1 of the Customs Act, section 2 of the Energy Costs Assistance Measures Act, the Excise Act, the Excise Tax Act (including the goods and services tax (GST) and the harmonized sales tax (HST) except for GST/HST on imported goods), the Excise Act, 2001, the Income Tax Act, the Softwood Lumber Products Export Charge Act, 2006, the Universal Child Care Benefit Act, and others including various provincial acts.

In delivering its mandate, the CRA operates under the following program activities:

(a) Internal services: Provides internal services across the CRA, such as human resources management, financial management and information technology, to support the needs of programs and corporate obligations;

(b) Reporting compliance: Verifies complete and accurate disclosure by taxpayers of all required information to establish tax liabilities;

(c) Assessment of returns and payment processing: Processes and validates taxpayer returns; registers, establishes, and maintains taxpayer accounts and; receives payments;

(d) Accounts receivable and returns compliance: Identifies and addresses non-compliance with taxpayer filing and remittance requirements;

(e) Taxpayer and business assistance: Assists taxpayers in meeting their obligations under the self-assessment;

(f) Appeals: Provides a dispute resolution process for taxpayers who disagree with decisions taken by the CRA;

(g) Benefit programs: Provides Canadians certain income-based benefits, credits and other services on behalf of federal, provincial (except Québec), and territorial governments;

(h) Taxpayers' Ombudsman: Addresses requests for reviews made by taxpayers and benefit recipients with respect to service matters.

2. Underlying Assumptions

These future-oriented financial statements have been prepared:

(a) based on information known as at December 31, 2012;

(b) on the basis of government policies, government priorities, and external environment at the time the future-oriented financial information was finalized;

(c) according to the requirements of Treasury Board Accounting Standards which are based on Canadian public sector accounting standards;

(d) on the basis that the resources provided will enable the CRA to deliver the expected results specified in the Report on Plans and Priorities;

(e) on the basis of historical costs.

3. Variations and changes to the forecasted financial Information

While every attempt has been made to accurately forecast final results of 2012-2013 and 2013-2014, actual results are likely to vary from the forecast information presented, and this variation could be material.

The CRA will not be updating the forecasts for any changes to appropriations or forecast financial information made in ensuing supplementary estimates. Variances will be explained in the Departmental Performance Report.

4. Summary of significant accounting policies

For financial reporting purposes, the CRA's activities have been divided into two sets of financial statements: agency activities and administered activities. The Financial Statements - Agency Activities include those operational revenues and expenses which are managed by the CRA and utilized in running the organization. The Financial Statements - Administered Activities include those revenues and expenses that are administered on behalf of the federal, provincial, and territorial governments, First Nations, and other organizations. The purpose of the distinction between agency and administered activities is to facilitate, among other things, the assessment of the administrative efficiency of the CRA in achieving its mandate. No future-oriented financial statements were prepared for administered activities because it is analogous to information presented by the Department of Finance.

These future-oriented financial Statements - Agency Activities have been prepared using accounting principles consistent with those applied in the preparation of the financial statements of the Government of Canada. The accounting principles used are based on Canadian public sector accounting standards. A summary of significant accounting policies follows:

(a) Parliamentary appropriations

The CRA is financed by the Government of Canada through Parliamentary appropriations. Accounting for appropriations provided to the CRA does not parallel financial reporting according to Canadian public sector accounting standards, as they are based in large part on cash flow requirements. Consequently, items recognized in the Future-oriented Statement of Financial Position and the Futures-oriented Statement of Operations and Agency Net Financial Position may be different from those provided through appropriations from Parliament. Note 5(b) provides a high-level reconciliation between the two bases of reporting.

(b) Net cash to be provided by the Government of Canada

The CRA operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the CRA is deposited to the CRF and all cash disbursements made by the CRA are paid from the CRF. The net cash to be provided by government is the difference between all respendable cash receipts and all cash disbursements including transactions with departments and agencies.

(c) Forecasted expenses

Expenses are recognized when goods are received and/or services are rendered.

(d) Services to be provided without charge from other government agencies and departments

Estimates of the cost for services to be provided without charge from other government agencies and departments are included in expenses.

(e) Forecasted revenues

Non-tax revenue is recognized when the services are rendered by the CRA.

Non tax revenues that are not available for spending cannot be used to discharge the CRA's liabilities. While management is expected to maintain accounting control, it has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented in reduction of the CRA's gross revenues.

(f) Vacation pay and compensatory leave

Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment. The liability for vacation pay and compensatory leave is calculated at the salary levels in effect at the end of the year for all unused vacation pay and compensatory leave benefits accruing to employees.

(g) Employee future benefits

i) Pension benefits

All eligible employees participate in the Public Service Pension Plan administered by the Government of Canada. The CRA's contributions reflect the full cost as employer. These amounts are currently based on a multiple of an employee's required contributions and may change over time depending on the experience of the Plan. The CRA's contributions are expensed during the year in which the services are rendered and represent the total pension obligation of the CRA. Current legislation does not require the CRA to make contributions with respect to any actuarial deficiencies of the Public Service Pension Plan.

ii) Health and Dental benefits

The Government of Canada sponsors an employee benefit plan (health and dental) in which the CRA participates. Employees are entitled to health and dental benefits, as provided for under labour contracts and conditions of employment. The CRA's contributions to the plan, which are provided without charge by the Treasury Board Secretariat, are recorded at cost based on a percentage of the salary expenses and charged to personnel expenses in the year incurred. They represent the CRA's total obligation to the plan. Current legislation does not require the CRA to make contributions for any future unfunded liabilities of the plan.

iii) Severance benefits

Some employees are entitled to severance benefits, as provided for under labour contracts and conditions of employment. The cost of these benefits is accrued as employees render the services necessary to earn them. These benefits represent an obligation of the CRA that entails settlement by future payments. The obligation resulting from the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the CRA.

(h) Due from the Consolidated Revenue Fund (CRF)

Amounts due from the CRF are the result of timing differences between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the CRA is entitled to draw from the CRF without further authorities to discharge its liabilities.

(i) Accounts receivable and advances

Accounts receivable and advances are stated at the lower of cost and net recoverable value. An allowance for doubtful accounts is recorded where recovery is considered uncertain.

(j) Tangible capital assets

All costs of $10,000 or more incurred by the CRA to acquire or develop tangible capital assets are capitalized and amortized over the useful lives of the assets. Similar items under $10,000 are expensed.

Tangible capital assets are amortized on a straight-line basis over the estimated useful lives of assets as follows:

Asset class	Useful life
Machinery, equipment, and furniture	10 years
In-house developed software	5-10 years
Vehicles and other means of transportation	5 years
Information technology equipment	5 years
Purchased software	3 years

Assets under construction/development are not amortized until completed and put into operation.

(k) Contingent liabilities

Contingent liabilities are potential liabilities that may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable, the CRA's best estimate of the contingency is disclosed in the notes to the financial statements.

(l) Measurement uncertainty

The preparation of the future-oriented financial information requires management to make estimates and assumptions that affect the amounts of assets, liabilities, revenues and expenses reported in the future-oriented financial statements. Assumptions are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. Nonetheless, as with all such estimates and assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

5. Parliamentary appropriations

The CRA receives most of its funding through annual Parliamentary appropriations. Items recognized in the Future-oriented Statement of Financial Position and the Future-oriented Statement of Operations and Agency Net Financial Position in one year may be funded through Parliamentary appropriations in prior, current, or future years. Accordingly, the CRA has different net results of operations for the year on a government funding basis than on an accrual accounting basis. These differences are reconciled below.

a) Reconciliation of Parliamentary appropriations to be provided and used:

(in thousands of dollars)

	2013	2014
Parliamentary appropriations — to be provided:
Vote 1 - Operating expenditures, contributions and recoverable expenses on behalf of the Canada Pension Plan and the Employment Insurance Act	3,507,920	3,039,746
Vote 5 - Capital expenditures	83,433	73,082
Spending of revenues received through the conduct of its operations pursuant to section 60(2) of the Canada Revenue Agency Act	185,679	193,779
Statutory expenditures:
Contributions to employee benefits plans	456,440	442,878
Disbursements to provinces under the Softwood Lumber Products Export Charge Act, 2006 (Footnote 1)	280,000	283,000
Children's Special Allowance payments (Footnote 1)	233,000	238,000
Minister of National Revenue - Salary and motor car allowance	78	79
	4,746,550	4,270,564
Less:
Appropriations available for future years (Footnote 2) - Vote 5	(30,992)	(18,972)
Expenditures related to Administered Activities (Footnote 1)	(513,000)	(521,000)
	(543,992)	(539,972)
Total Parliamentary appropriations to be used	4,202,558	3,730,592

(Footnote 1) In accordance with the division of activities for financial reporting purposes outlined in Note 4, the payments under the Softwood Lumber Products Export Charge Act, 2006, and the Children's Special Allowances Act are reported as federal administered expenses on the Statement of Administered Expenses and Recoveries of the CRA's Financial Statements - Administered Activities.

(Footnote 2) Pursuant to section 60(1) of the Canada Revenue Agency Act, the balance of money appropriated by Parliament for the use of the CRA that remains unexpended at the end of the fiscal year lapses at the end of the following fiscal year.

b) Reconciliation of net cost of operations before government funding to total Parliamentary appropriations to be used:

(in thousands of dollars)

	2013	2014
Net cost of operations before government funding	4,328,833	3,999,635
Expenses not requiring use of current year appropriations:
Amortization of tangible capital assets (Note 9)	(79,119)	(82,793)
Loss on disposal/write-off of tangible capital assets	(7,452)	(6,087)
Services to be provided without charge from other government agencies and departments (Note 12)	(428,027)	(421,532)
Other	(69,956)	(59,243)
	(584,553)	(569,655)
Changes to non financial assets affecting appropriations:
Tangible capital assets acquisitions	67,635	103,985
Variation in prepaid expenses	(130)	(131)
	67,505	103,854
Changes in future funding requirements:
Employee severance benefits	204,997	31,964
Salary, vacation pay and compensatory leave	99	(28,985)
	205,096	2,979
Non-tax revenues available for spending	185,678	193,779
Total Parliamentary appropriations to be used	4,202,558	3,730,592

6. Accounts Payable and accrued liabilities

(in thousands of dollars)

	2013	2014
Accounts Payable and accrued liabilities - Related parties	44,118	44,560
Accounts Payable and accrued liabilities - External	123,911	125,122
	168,029	169,682

7. Employee future benefits

(a) Pension benefits

The CRA and all eligible employees contribute to the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of two percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to the inflation.

Both the CRA and employees contribute to the Public Service Pension Plan. The yearly expense for the CRA's contributions represents approximately 1.8 times the contributions by employees. The contributions to the Public Service Pension Plan for the forecasted years are expected to be as follows:

(in thousands of dollars)

	2013	2014
CRA's contributions	325,898	315,982
Employees' contributions	191,518	196,263

The CRA's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada.

(b) Health and Dental benefits

The CRA contributes for all eligible employees to the Public Service Health Care Plan and Public Service Dental Care Plan, which are sponsored by the Government of Canada.

The CRA's responsibility with regard to these plans is limited to its contributions (refer to Note 12). Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada.

(c) Severance benefits

The CRA provides severance benefits to its employees based on eligibility, years of service and salary upon termination. These severance benefits are not pre-funded with assets supporting the obligations, resulting in a deficit equal to the accrued benefit obligations. Benefits will be paid from future appropriations. Information about the severance benefits, measured at the time of preparation of these statements, is as follows:

(in thousands of dollars)

	2013	2014
Employee severance benefits, beginning of year	732,313	527,316
Cost for the year	13,278	3,112
Benefits to be paid during the year	(218,275)	(35,076)
Employee severance benefits, end of year	527,316	495,352

8. Accounts receivable and advances

(in thousands of dollars)

	2013	2014
Accounts receivable - Related parties	3,720	3,757
Accounts receivable - External	554	560
Advances to employees	1,368	1,415
Salary overpayments	2,666	2,756
	8,308	8,487
Less: Allowance for doubtful accounts	(793)	(811)
Total accounts receivable and advances	7,515	7,677

9. Tangible capital assets

(in thousands of dollars)

	Cost - 2013-2014
	Opening balance	Acquisitions	Disposals	Closing balance
Tangible capital Asset Class
Machinery, equipment and furniture	10,551	54	1,832	8,773
Software (purchased and in-house developed and/or in development)	762,500	106,518	9,557	859,461
Vehicles and other means of transportation	2,215	13	-	2,228
Information technology equipment	18,301	1,174	2,791	16,684
Total	793,567	107,759	14,180	887,146

(in thousands of dollars)

	Accumulated amortization - 2013-2014
	Opening balance	Amortization expense	Disposals	Closing balance
Tangible capital Asset Class
Machinery, equipment and furniture	6,006	2,140	1,443	6,703
Software (purchased and in-house developed and/or in development)	383,683	79,125	4,496	458,312
Vehicles and other means of transportation	1,736	337	-	2,073
Information technology equipment	16,257	1,191	2,154	15,294
Total	407,682	82,793	8,093	482,382

(in thousands of dollars)

	2013 Net book value	2014 Net book value
Tangible capital Asset Class
Machinery, equipment and furniture	4,545	2,070
Software (purchased and in-house developed and/or in development)	378,817	401,149
Vehicles and other means of transportation	479	155
Information technology equipment	2,044	1,390
Total	385,885	404,764

The cost of software in development, which is not amortized, is $188,517,255 as at March 31, 2014 ($130,622,538 as at March 31, 2013).

10. Segmented information - Expenses

The following table presents the expenses by program activity and expense category as described in Note 1 of these Future-oriented financial statements.

(in thousands of dollars)

	Internal services	Reporting compliance	Assessment of returns and payment processing	Accounts receivable and returns compliance	Taxpayer and business assistance
Personnel:
Salaries	497,153	742,618	332,176	399,204	219,450
Other allowances and benefits (including employee benefits described in Note 7c)	187,413	281,985	123,218	157,740	86,167
	684,566	1,024,603	455,394	556,944	305,617
Accommodation	68,232	106,804	45,583	59,450	32,553
Professional and business services	198,001	24,507	22,769	16,375	6,958
Transportation and communications	58,577	25,795	28,764	17,545	6,936
Federal sales tax administration costs by the Province of Québec	-	-	113,000	-	-
Repair and maintenance	20,802	16,699	18,628	11,360	4,490
Amortization of capital assets (Note 9)	72,120	865	6,907	816	602
Equipment purchases	8,224	3,407	3,854	2,420	966
Other services and expenses	1,659	634	704	430	169
Materials and supplies	12,089	5,322	5,935	3,620	1,431
Advertising, information and printing services	6,819	360	402	245	97
Loss on disposal/write-off of capital assets	2,346	32	327	3,330	49
Equipment rentals	4,213	6,105	2,633	3,400	1,862
Total	1,137,648	1,215,133	704,900	675,935	361,730

(in thousands of dollars)

	Appeals	Benefit programs	Taxpayers' Ombudsman	2014	2013
Personnel:
Salaries	106,181	86,308	1,974	2,385,064	2,428,130
Other allowances and benefits (including employee benefits described in Note 7c)	41,248	29,900	786	908,457	934,430
	147,429	116,208	2,760	3,293,521	3,362,560
Accommodation	15,652	11,229	298	339,801	337,558
Professional and business services	51,231	10,660	205	330,706	390,814
Transportation and communications	18,666	11,939	193	168,415	203,706
Federal sales tax administration costs by the Province of Québec	-	-	-	113,000	148,326
Repair and maintenance	12,085	7,726	125	91,915	109,509
Amortization of capital assets (Note 9)	207	1,276	-	82,793	79,119
Equipment purchases	2,564	1,672	27	23,134	52,265
Other services and expenses	457	293	5	4,351	5,052
Materials and supplies	3,851	2,463	40	34,751	41,699
Advertising, information and printing services	261	167	3	8,354	11,917
Loss on disposal/write-off of capital assets	-	3	-	6,087	7,452
Equipment rentals	895	648	17	19,773	87,584
Total	253,298	164,284	3,673	4,516,601	4,837,561

11. Segmented information- Non-tax revenues

The following table presents the revenues generated by program activity and revenue category as described in Note 1 of these Future-oriented financial statements.

(thousands of dollars)

	Internal services	Reporting compliance	Assessment of returns and payment processing	Accounts receivable and returns compliance	Taxpayer and business assistance
Non-tax revenues credited to Vote 1
Fees for administering the Employment Insurance Act	57,672	-	11,072	74,235	28,419
Fees for administering the Canada Pension Plan	46,994	-	15,937	60,254	15,508
	104,666	-	27,009	134,489	43,927
Non-tax revenues available for spending
Services fees	62,075	128	2,152	88	178
Administration fees - provinces and territories	35,100	34,891	15,382	812	1,913
Miscellaneous respendable revenues	1,971	1,624	97	-	519
	99,146	36,643	17,630	901	2,610
Non-tax revenues not available for spending
Recovery of employee benefit costs relating to non-tax revenues credited to Vote 1 and revenues available for spending	7,389	7,136	11,473	24,678	9,184
Miscellaneous non-tax revenues	825	-	-	-	-
	8,214	7,136	11,473	24,678	9,184
Total non-tax revenues before revenues earned on behalf of Government	212,026	43,779	56,112	160,068	55,721
Revenues earned on behalf of Government	(8,214)	(7,136)	(11,473)	(24,678)	(9,184)
Total non-tax revenues	203,812	36,643	44,639	135,389	46,537

(thousands of dollars)

	Appeals	Benefit programs	2014	2013
Non-tax revenues credited to Vote 1
Fees for administering the Employment Insurance Act	9,654	377	181,429	180,505
Fees for administering the Canada Pension Plan	3,065	-	141,758	142,545
	12,719	377	323,187	323,050
Non-tax revenues available for spending
Services fees	-	258	64,879	70,267
Administration fees - provinces and territories	3,046	33,535	124,679	111,087
Miscellaneous respendable revenues	-	10	4,221	4,324
	3,046	33,803	193,779	185,678
Non-tax revenues not available for spending
Recovery of employee benefit costs relating to non-tax revenues credited to Vote 1 and revenues available for spending	2,586	4,294	66,740	62,395
Miscellaneous non-tax revenues	644	-	1,469	1,470
	3,230	4,294	68,209	63,865
Total non-tax revenues before revenues earned on behalf of Government	18,995	38.474	585,175	572,593
Revenues earned on behalf of Government	(3,230)	(4,294)	(68,209)	(63,865)
Total non-tax revenues	15,765	34,180	516,966	508,728

12. Related party transactions

The CRA is related in terms of common ownership to all Government of Canada departments, agencies, and Crown corporations. Transactions with Crown corporations entered into by the CRA are in the normal course of business and on normal trade terms applicable to all individuals and enterprises. Transactions with other Government of Canada departments and agencies are conducted on a cost recovery basis.

The CRA is expected to receive various services without charge from other government agencies and departments in the coming years. The estimated costs for significant services to be provided without charge that have been recorded include:

(thousands of dollars)

	2013	2014
Employer's contribution to the employee benefit plan (health and dental) - Treasury Board Secretariat	215,444	211,771
Information technology services - Shared Services Canada	167,493	167,318
Legal services - Justice Canada	36,850	34,644
Payroll services - Public Works and Government Services Canada	4,320	4,142
Audit services - Office of the Auditor General of Canada	2,490	2,430
Workers' compensation benefits - Human Resources and Skills Development Canada	1,490	1,227
Total	428,027	421,532

13. Contingent liabilities

The CRA is a defendant in certain cases of pending and threatened litigation which arose in the normal course of operations. The current best estimate of the amount to be paid in respect of the cases identified as likely to be lost has been recorded in Accounts payable and accrued liabilities. All other cases, excluding those assessed as unlikely to be lost, are considered contingent liabilities and the related amounts are disclosed whenever the amount of the contingency can be reasonably estimated. At the time of preparation of these statements, contingent liabilities for claims and pending and threatened litigation have been estimated at $37,772,645.

Date modified:

2013-03-29