Audited Financial Statements – Agency Activities

Notes to the Financial Statements – Agency Activities

1. Authority and objectives

The Canada Revenue Agency (the “Agency”) previously named the Canada Customs and Revenue Agency was established as an agent of Her Majesty of Canada on November 1, 1999, under the Canada Customs and Revenue Agency Act ( CCRA Act). The CCRA Act was amended, on December 12, 2005, and renamed the Canada Revenue Agency Act ( CRA Act). The Agency 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 Agency is to support the administration and enforcement of tax legislation as well as other related legislation. The Agency 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 Agency and the government of a province 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 Agency 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 Agency collects revenues, including income and sales taxes, Canada Pension Plan contributions, Employment Insurance premiums, administers tax legislation, and delivers a number of social benefit programs to Canadians for the Federal government, as well as for provincial, territorial, and First Nations governments and collects amounts for other groups or organizations. It is responsible for the administration and enforcement of the following acts or parts of acts: Air Travellers Security Charge Act, the CRA 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 Sale 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.

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

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

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

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

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

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

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

Date modified:

2009-01-29