Plans at a glance

What’s new

Extended and new COVID-19 emergency measures and recovery benefits

• In addition to the programs that have been extended, the CRA will continue to administer the following new individual income support benefit and business support programs:
  • Canada Worker Lockdown Benefit,
  • Tourism and Hospitality Recovery Program, and
  • Hardest-Hit Business Recovery Program.
• The CRA will further strengthen controls in place to protect the integrity of the programs and to help ensure that only eligible Canadians and businesses are receiving payments.

Digital Transformation

• The CRA is streamlining the Disability Tax Credit application process through a collaborative process with healthcare providers and stakeholders.
• The ePayroll project, a 2021 federal budget priority, will work towards modernizing and streamlining the way employers transmit and report payroll, employment, and demographic information.
• The CRA is making more digital options available to its clients, third parties, and partners for two-way information exchange.

Compliance

• The CRA will further enhance its capacity to identify tax evasion involving trusts.
• The CRA will provide better targeted services and guidance to executors and trustees of estates.
• The CRA will increase audit coverage related to illicit activities resulting from leads provided by law enforcement organizations and other government departments.
• The CRA commits to identifying $350 million in unwarranted GST/HST refund and rebate claims by 2023–24.

Workplace of the Future

• The CRA will be agile as it explores, experiments, and innovates with flexible hybrid work models.
• CRA employees will be equipped with modern tools, skills, and learning options enabling them to work effectively and efficiently regardless of their work location.

Diversity and Inclusion

• The CRA will continue to identify recruitment and staffing strategies to address underrepresentation and support career development in the workforce.
• The CRA will increase mentoring and coaching opportunities for employees in equity-deserving groups.
• The CRA will continue to improve its relationship with Indigenous Peoples with activities and initiatives such as the Indigenous Mentoring Initiative, the Indigenous Buddy Initiative and the Indigenous Student Employment Program.

CRA priorities

The following five strategic priorities and associated objectives will guide the CRA in delivering on its core responsibilities during the period covered in the Plan. The CRA is moving forward resolutely, building on lessons learned through the pandemic experience and focusing on its priorities.

Priorities

Core responsibilities

Core responsibility: Tax

Description

The CRA’s core responsibility for tax is to ensure that Canada’s self-assessment tax system is sustained by providing clients with the support and information they need to understand and fulfill their tax obligations. The CRA also takes compliance and enforcement actions when necessary to uphold the integrity of the system. When clients disagree with an assessment or decision we have made, we offer avenues for redress.

Activities related to the core responsibility for tax include:

• informing clients of their rights, responsibilities and entitlements under Canada’s tax laws (the Income Tax Act, the Excise Tax Act and the Excise Act, 2001) and the Taxpayer Bill of Rights^{Footnote iii}
• issuing rulings and interpretations to clarify how tax laws are applied
• processing and assessing client returns and collecting taxes owed or refunding excess income tax paid
• conducting reviews and audits, applying various penalties and investigating suspected cases of willful non-compliance for tax evasion, fraud, and other serious tax law violations
• offering a process for resolving disputes
• registering businesses, charities and deferred income and savings plans
• determining whether a worker’s employment is pensionable or insurable under the Canada Pension Plan or the Employment Insurance Act
• resolving cases of double taxation with tax treaty partners

The CRA also administers programs for the federal, provincial and territorial governments. These programs provide billions of dollars in incentives for scientific research and experimental development, film and media production, and other targeted credits and deductions that generate refunds or reduce the amount of tax that clients would otherwise owe. Through these tax incentives, the Government of Canada helps encourage the pursuit of information, innovative ideas and technologies that stimulate economic growth and competitiveness.

Tax performance indicators

The CRA uses the following indicators to assess its performance with respect to its core responsibility for tax. Results for 2021–22 will be reported in the CRA Departmental Results Report for 2021–22. For more information on the methodologies used to calculate these indicators, go to GC InfoBase^{Footnote iv}.

n/a = this performance indicator has no comparable result for this period

The CRA has set new targets for some of its tax performance indicators to reflect the changes made in their performance measurement methodology. Targets are meant to be ambitious but realistic. Although historical data can inform target settings, given the current extraordinary environment of the COVID-19 pandemic and its influence on 2020–21 results, the CRA believes that its 2022–23 targets are ambitious but realistic. New targets have been set for tax and benefits indicators that were introduced in 2021–22. The CRA will continue to refine its indicators to ensure they effectively contribute to the organization’s planned results and decision-making.

Planned budgetary spending for tax

The following table shows, for tax, budgetary spending for 2022–23 (dollars), as well as planned spending for that year and for each of the next two fiscal years.

Planned human resources for tax

The following table shows, in full‑time equivalents, the human resources the department will need to fulfill this core responsibility for 2022–23 and for each of the next two fiscal years.

Core responsibility: Benefits

Description

The CRA’s core responsibility for benefits is to ensure that clients obtain the support and information they need to better understand which benefits they may be eligible to receive, that they receive their benefit payments in a timely manner, and have avenues of redress when they disagree with a decision on their benefit eligibility.

The CRA administers the Canada child benefit, goods and services tax/harmonized sales tax credit, children’s special allowances, disability tax credit and Canada workers benefit, as well as provincial and territorial programs. The CRA uses its federal tax delivery infrastructure to administer almost 200 services and ongoing benefits and one-time payment programs on behalf of the provinces and territories that contribute directly to the economic and social well-being of Canadians by supporting families, children and caregivers.

Benefits performance indicators

The CRA uses the following indicators to assess its performance with respect to its core responsibility for benefits. For more information on the methodologies used to calculate these indicators, go to GC InfoBase^{Footnote v}.

n/a = this performance indicator has no comparable result for this period

Planned budgetary spending for benefits^{Footnote 7}

The following table shows, for benefits, budgetary spending for 2022–23 (dollars), as well as planned spending for that year and for each of the next two fiscal years.

Planned human resources for benefits

The following table shows, in full‑time equivalents, the human resources the department will need to fulfill this core responsibility for 2022–23 and for each of the next two fiscal years.

Internal Services

Description

Internal services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal services refer to the activities and resources of ten distinct service categories that support program delivery in the organization, regardless of the internal services model in an agency or department. These services are: acquisition management services, communications services, financial management services, human resources management services, information management services, information technology services, legal services, materiel management services, management and oversight services, and real property management services.

Planned budgetary spending for internal services

The following table shows, for internal services, budgetary spending for 2022–23 (dollars), as well as planned spending for that year and for each of the next two fiscal years.

Planned human resources for internal services

The following table shows, in full time equivalents, the human resources the department will need to carry out its internal services for 2022–23 and for each of the next two fiscal years.

Taxpayer Bill of Rights

The Taxpayer Bill of Rights (TBR) describes and defines 16 rights and builds upon the CRA’s corporate values of professionalism, respect, integrity, and collaboration. It describes the treatment taxpayers are entitled to when dealing with the CRA. The Taxpayer Bill of Rights also sets out the CRA’s commitment to small business to ensure their interactions are conducted as efficiently and effectively as possible.

The CRA integrates the TBR in its core responsibilities and across all of its daily activities. The TBR is a vital part of the CRA’s service transformation to be client-centric, fairer, and more supportive. Rights 5 and 6, 9 to 11, and 13 to 15 (identified with an asterisk below) are service rights that govern the CRA’s relationship with taxpayers. A service right is influenced by general concepts, such as fairness, transparency, and courtesy. The CRA promotes widespread understanding of those rights to ensure they are integrated into how it delivers programs and services, and interacts with its clients.

1. You have the right to receive entitlements and to pay no more and no less than what is required by law
2. You have the right to service in both official languages
3. You have the right to privacy and confidentiality
4. You have the right to a formal review and a subsequent appeal
5. You have the right to be treated professionally, courteously, and fairly*
6. You have the right to complete, accurate, clear, and timely information*
7. You have the right, unless otherwise provided by law, not to pay income tax amounts in dispute before you have had an impartial review
8. You have the right to have the law applied consistently
9. You have the right to lodge a service complaint and to be provided with an explanation of the CRA findings*
10. You have the right to have the costs of compliance taken into account when administering tax legislation*
11. You have the right to expect the CRA to be accountable*
12. You have the right to relief from penalties and interest under tax legislation because of extraordinary circumstances
13. You have the right to expect the CRA to publish its service standards and report annually*
14. You have the right to expect the CRA to warn you about questionable tax schemes in a timely manner*
15. You have the right to be represented by a person of your choice*
16. You have the right to lodge a service complaint and request a formal review without fear of reprisal

Commitment to small business

1. The CRA is committed to administering the tax system in a way that minimizes the costs of compliance for small businesses
2. The CRA is committed to working with all governments to streamline service, minimize cost, and reduce the compliance burden
3. The CRA is committed to providing service offerings that meet the needs of small businesses
4. The CRA is committed to conducting outreach activities that help small businesses comply with the legislation we administer
5. The CRA is committed to explaining how we conduct our business with small businesses.

Priorities

A seamless, empathetic and client‑centric service experience

Providing a seamless, empathetic and client-centric service experience involves:

This service review icon represents the service and digital improvements for 2022–23 to 2024–25 presented in this Plan to help the CRA continue its service journey following the multi-year funding reallocated in the CRA from Budget 2018 to develop and implement service improvement initiatives beginning in 2019–20.

Adjust the compliance approach according to the degree of non-compliance

Our commitment to Canadians in 2022–23:

• Promote compliance among low-risk charities by implementing non-audit interventions (e.g., education for minor types of non-compliance, and the promotion of awareness about registration obligations)
• Expand the CRA’s Liaison Officer program to provide service to additional businesses and self-employed individuals each year
• Increase the emphasis on collaboration and education in CRA interventions with small and medium businesses to address low dollar non-compliance to encourage future compliance
• Educate businesses, encourage compliance, and help prevent future errors by conducting two tax letter campaigns (GST/HST and income tax)

Improve client interactions through consultation and collaboration

Our commitment to Canadians in 2022–23:

• Consult persons with disabilities to document how the CRA will identify, remove, and prevent barriers to accessibility in its policies, programs, practices, and services
• Co-create, with clients, the design of how the CRA delivers new (or optimizes existing) information services on Canada.ca

Launch more ways for clients to interact digitally with the CRA

The CRA will expand its current capabilities and allow more financial institutions to digitally exchange data with the CRA, which saves financial institutions the cost of paper, ink, mail, and courier services. The CRA will also launch its Secure Drop Zone initiative to provide a secure, two-way channel that enables the CRA, taxpayers, third parties, and other partners to digitally exchange information on an ad-hoc basis outside of the CRA’s portals. In addition, the CRA will implement new e-fax lines so inbound faxes can be more easily digitized and stored, enabling CRA employees to retrieve the digitized information remotely, which saves paper.

In Budget 2021, the Canada Workers Benefit (CWB) was expanded to support approximately one million additional Canadians in low wage jobs. This benefit is a refundable tax credit that is intended to supplement the earnings of low and modest income workers and increase their incentive to enter into or maintain employment. Currently, individuals and families can claim the CWB on their individual income tax and benefit (T1) return. Eligible individuals and families can submit an application to get up to half of the CWB in advance payments instead of waiting for 'tax time'.

At the CRA, digital transformation is a proactive and ongoing shift in culture, mindsets, and processes to enable improvements in service to Canadians. Managing the shift in culture requires the use of a growth mindset that encourages employees to look for opportunities to build upon or improve existing services, and then use the lessons learned to build new services that are designed for a digital environment first.

The CRA’s digital transformation program is developing a unified approach to digital transformation across all programs at the CRA, and develop reusable solutions to common challenges when migrating current processes to a digital environment. A Digital Acceleration Fund has also been established to support the rapid development of digital solutions and to meaningfully advance digital initiatives that will improve service to Canadians, providing funding for at least 13 projects in 2022 and beyond. Being nimble, identifying medium term digital initiatives to pursue, and effectively adopting a digital mindset are important steps for the CRA to take in making gains in the digital space and improving our service offerings to Canadians now and in the future. All of this work supports key digital and service-related commitments set out in the Minister of National Revenue’s 2021 mandate letter from the Prime Minister.

Our commitment to Canadians in 2022–23:

• Expand the simplified return and Canada child benefit forms initiative "Let Us Help You Get Your Benefits" to all Indigenous peoples
• Implement the enhanced Canada Workers Benefit and ensure Canadians who qualify and did not apply are automatically enrolled
• Implement the increase in allowable Simplified Home Office Expense Deduction, from $400 to $500, and extend this administrative option for the 2021 and 2022 tax years
• Introduce system upgrades to allow more comprehensive electronic filing for trust (T3) returns and work with the tax preparation and software industry to leverage this new CRA capacity
• Enable real-time, secure, and reliable online access to CRA’s My Account for holders of My Alberta Digital Identification
• Enable individuals who filed an objection to their T1 assessment or filed a request to cancel penalties and interest, to view the status of their submission online
• Introduce a new chat service where Canadians will be able to interact with a CRA client service representative online for general questions
• Launch a digital submission of disability tax credit applications
• Enable claimants of the Scientific Research and Experimental Development tax credit to assess their eligibility at the outset and share supporting documentation with the CRA quickly and easily through My Business Account
• Allow taxpayers to file certain special elections and returns electronically
• Create principles, practices, and methods to improve the CRA’s ability to make long-term decisions around design requirements, responsiveness, and sustainability for new business processes and information technology solutions

A fair tax and benefit administration

To maintain fairness in Canada’s tax and benefits administration, the CRA will be:

• reinforcing its efforts in combatting tax evasion and aggressive tax avoidance
• exchanging and leveraging information with the CRA’s key international and domestic partners
• sharpening the focus on emerging tax risks
• managing the tax debt through Government of Canada investments

Reinforce the CRA’s efforts in combatting tax evasion and aggressive tax avoidance

The Government of Canada is committed to protecting the integrity of the Canadian tax system by combating tax evasion and aggressive tax avoidance on all levels in Canada and abroad, including tightening the net on sophisticated taxpayers who try to avoid paying their fair share of taxes and disrupting tax intermediaries who facilitate it. The 2021 mandate letter of the Minister of National Revenue includes important commitments related to the CRA’s work to combat aggressive tax planning, tax avoidance and tax evasion. The 2020 Fall Economic Statement and Budget 2021 announced additional funding that will allow the CRA to develop new initiatives and extend existing programs to fight tax evasion and aggressive tax avoidance, which includes improving transparency on beneficial-ownership arrangements, and closing significant tax loopholes. These investments will also allow the CRA to enhance its capacity to identify tax evasion involving trusts. These actions will help ensure that those who reduce their taxes in a way that goes against the spirit of the law, who break the law, or who try to get unwarranted refunds will face the consequences of their actions. The CRA has been and will continue to focus and increase its audit activities to identify and target offshore non-compliance and aggressive tax planning, particularly in the most egregious cases. In addition, Budget 2021 also announced that the funding will allow the CRA to provide better targeted service and guidance to executors and trustees of estates.

Our commitment to Canadians in 2023–24:

• Increase the audit coverage focused on high net worth individuals
• Implement improvements to business intelligence used in identifying the highest risk files within the high net worth population

Exchange and leverage information with the CRA’s key international and domestic partners

Engaging with the CRA’s global partners is instrumental in maintaining fairness. The CRA is committed to international efforts to ensure that multinational enterprises pay their fair share of tax on the profits by doing business in Canada and around the world. After many years of intensive work to modernize the international tax rules, members of the Organisation for Economic Co-operation and Development (OECD) Inclusive Framework reached an agreement on October 8, 2021, when more than 130 of its member jurisdictions joined the Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy. The agreement aims to ensure that multinational enterprises (MNEs) will be subject to a minimum tax rate of 15%, and will re-allocate taxing rights in relation to a portion of profits for many of the largest and most profitable MNEs to countries worldwide. This is a landmark agreement, and an ambitious implementation timeline has been set, with legislative changes intended to take effect in 2023. The CRA, through Commissioner Hamilton’s role as Chair of the OECD’s Forum on Tax Administration (FTA) and sponsor of the FTA’s Large Business and International Program (LBIP), will have a central role to play in 2022 as implementation and administrative details for the Two-Pillar Solution are finalized.

Our commitment to Canadians in 2022–23:

• Continue to engage with the CRA's international and domestic partners (including provinces and territories, Government of Canada stakeholders, and OECD members) on virtual (crypto) asset regulations, the development of an international standardized reporting framework, and an expanded scope for exchanges of data with our partners to better understand and identify the population of taxpayers involved in virtual assets and the possible tax compliance risks
• Implement the Foreign Account Tax Compliance Act and Common Reporting Standard through the CRA’s financial institution compliance programs to increase the quality and timeliness of the data Canada exchanges with its international partners
• Increase audit coverage related to illicit activities resulting from leads provided by law enforcement organizations and other government departments

Sharpen the focus on emerging tax risks

The CRA continues to expand its business intelligence and data analysis tools and capacity to target those who attempt to conceal their assets to avoid paying their share of tax. In 2022–23, the CRA will identify and address intentional non- compliance as early as possible. This will help to minimize objections and collections impacts, provide more certainty to those considering similar actions, and ensure that everyone pays their share of taxes.

Our commitment to Canadians in 2022–23:

• Improve the CRA’s understanding of income tax and GST/HST non-compliance in digital commerce by conducting exploratory platform economy audits
• Apply new analytical tools using new technology, machine learning, and artificial intelligence to recover $100 million in unwarranted GST/HST refund and rebate claims

Our commitment to Canadians in 2023–24:

• Recover $250 million in unwarranted GST/HST refund and rebate claims

Manage the tax debt through Government of Canada investments

To improve the CRA’s ability to collect outstanding taxes and to help reduce the overall growth of the tax debt, Government of Canada investments from Budget 2021 provides the CRA with $230 million over five years, starting in 2021–22. It is anticipated that this funding will lead to the collection of an additional $5 billion in outstanding taxes over that period.

Our commitment to Canadians in 2022–23:

• Resolve an additional $814 million in debt as a result of Budget 2021 investments

Enhanced security, transparency, and accountability

Enhancing security, transparency and accountability includes:

• enhancing security technologies, processes, and controls to prevent breaches
• promoting greater transparency

Enhance security technologies, processes, and controls to prevent breaches

The protection of taxpayer information is of the utmost importance for the CRA. When clients trust that the CRA is fair in its dealings with them and the CRA protects their personal information in an increasingly sophisticated cyber threat environment, they are more likely to comply with their tax obligations. This is why the CRA has stringent and ongoing measures in place to analyze, identify, and mitigate against potential threats, neutralize threats when they occur, prevent unauthorized changes to clients’ accounts, and protect sensitive data. The CRA also leverages its relationships with other government departments, law enforcement, the Canadian Anti-Fraud Centre and the provinces and territories to ensure horizontal collaboration and coordination needed to protect taxpayer accounts and personal information. As the CRA looks ahead to a workplace of the future in which employees will more often be working remotely, it will continue to provide security guidance to employees to ensure the ongoing protection of the personal information Canadians have entrusted to it.

Our commitment to Canadians in 2022–23:

• Enhance internal and remote workforce endpoint safeguards on workstations and laptops to reduce opportunities for theft and destruction of taxpayer data
• Enhance the protection of taxpayer information and systems by implementing a multifactor authentication system for CRA employees, which mitigates the risk of unauthorized users accessing CRA systems by means of compromised employee user names and passwords
• Better support the privacy and protection of personal information by creating new security awareness and training tools and providing additional guidance to those working in new physical and virtual workplace settings

Promote greater transparency

The CRA strives to be transparent in the way it manages its day-to-day operations to achieve results that demonstrate quality, efficiency, and effectiveness. The CRA is committed to being clear and transparent when reporting to its clients the performance results that it has achieved, and in its contribution to the Open Government initiative, which provides greater access to government data and information to the public and businesses. Further, the CRA is committed to adhering to the proactive disclosure requirements outlined in Bill C-58. The CRA will respond in a more timely way to requests under the Access to Information Act and Privacy Act.

Our commitment to Canadians in 2022–23:

• 85% of Access to Information Act and Privacy Act requests are responded to digitally
• All backlogged access to information and privacy requests received prior to March 31, 2019 will be closed through the access to information and privacy backlog elimination plan
• Modernize the processing of Access to Information Act and Privacy Act requests by using business intelligence tools and Lean methodology to improve timeliness and address the backlog of requests

An innovative, data-driven organization

Enabling an innovative, data-driven organization includes:

• stimulating a culture of innovation and use of innovative techniques and emerging technologies
• improving data quality and better integrating the use of data across the CRA

Stimulate a culture of innovation and use of innovative techniques and emerging technologies

The CRA will continue to foster a workplace culture that constantly improves programs and services for Canadians by turning good ideas into successful solutions. The CRA’s ongoing focus is to empower its employees to help identify continuous improvement by looking at processes from the client’s perspective.

Our commitment to Canadians in 2022–23:

• Fund up to $3 million in experiments that use innovative approaches
• Increase experimentation in the use of artificial intelligence by completing five proofs of concept (in support of service and compliance in the CRA) using different analytical methods

Improve data quality and better integrate the use of data across the CRA

To help the CRA design and deliver more effective programs and services, the CRA will enhance its ability to access and use data and information, evaluate its quality, interpret the results of analyses, and ensure its ethical use in bringing about better outcomes for Canadians.

Our commitment to Canadians in 2022–23:

• Deliver data-related learning opportunities and products to enhance data awareness across the CRA as part of phase 2 of the CRA Information and Data Strategy

A thriving and inclusive workforce and inclusive workplace

A thriving diverse workforce and inclusive workplace includes:

• advancing diversity and inclusion in the workplace
• addressing discrimination and harassment
• ensuring that work environments are accessible, flexible, digital, and connected

Advance diversity and inclusion in the workplace

The CRA will take further steps to build a more diverse, representative, and inclusive workforce by closing representation gaps for equity-deserving groups that currently exist within the organization. The CRA will continue to support the Clerk’s Call to Action on Anti-Racism, Equity and Inclusion in the Federal Public Service^{Footnote vii} and implement the initiatives included in the CRA’s Employment Equity, Diversity and Inclusion Action Plan 2021 to 2022 through 2024 to 2025. The detailed CRA response to the Clerk’s call to action letter is outlined in the CRA’s Letter on Implementation of the Call to Action on Anti-Racism, Equity and Inclusion^{Footnote viii}.

Our commitment to Canadians in 2022–23:

• Conduct an independent review of the employment systems, policies, and practices at the CRA to identify any employment barriers for persons in designated groups within five major occupational groups and at the executive level
• Publish the CRA’s first Accessibility Plan developed in consultation with the CRA’s Persons with Disabilities Network and Person’s with Disabilities Engagement and Consultative Group in accordance with the Accessible Canada Act to identify, eliminate and prevent barriers to accessibility for employees and clients
• Increase the representation of Indigenous peoples and visible minorities in the executive group, where gaps currently exist
• Expand opportunities for leadership development to equity-deserving groups through the CRA’s new sponsorship program

Address discrimination and harassment in the workplace

The CRA will complete the alignment of its human resources procedures, guidelines, and other information with the updated regulations in Part II of the Canada Labour Code, which focus on the prevention and resolution of harassment and violence in the workplace. In addition, the CRA will provide its employees and managers with the necessary training and support to foster better awareness and more actively address harassment and violence prevention.

Our commitment to Canadians in 2022–23:

• Develop a comprehensive engagement strategy for employees to sustain an ongoing dialogue on anti-racism, diversity and inclusion to foster awareness and cultural intelligence on the topics
• Launch a CRA specific training module to accompany Canada School of Public Service training, and begin development of standalone CRA workplace harassment and violence training with all employees being trained by March 2023
• Conduct an ongoing quarterly review of the workplace assessment to continuously identify, assess and control risk factors and prevent occurrences of harassment and violence in the workplace

Ensure that work environments are accessible, flexible, digital, and connected

The CRA continues to adapt to the hybrid model of work, which allows some employees to work remotely fulltime, others to work from CRA worksites fulltime, or a combination of working at home and at the office, based on business and operational requirements while balancing employee preferences. The CRA will be agile as it explores, experiments, and innovates with the hybrid model of work. CRA offices will feature modernized workplaces that are flexible, green, collaborative, efficient, digital, healthy, and inclusive.

Our commitment to Canadians in 2022–23:

• Launch a new Directive on Virtual Work Arrangements
• Develop the next iteration of CRA’s Workplace of the Future implementation plan that incorporates organizational structures, governance mechanisms and cost estimates. In response to the rapidly evolving environment, this multi-year plan will be updated annually until stabilized
• Enable a hybrid workforce with modern IT tools and efficient technological solutions
• Create an integrated learning approach to equip employees with the skills needed to enable digital transformation through modern business practices
• Support the learning and well-being needs of CRA managers and employees in a hybrid work environment
• 100% of office space fit-up projects follow the Government of Canada Workplace standards – that is a flexible activity-based workplace design standard that supports both autonomous and collaborative work

Key Risks

A seamless, empathetic, and client-centric service experience

• The COVID-19 pandemic has shaped the risk landscape for the CRA, in particular for its service-related risks, which impacts how adequately the organization meets clients’ service expectations. There is a risk that the CRA will not meet client expectations related to long call wait-times and information quality on the CRA website. These risks are being mitigated through technology-supported solutions, such as upgrades to the CRA’s secure online portals and an enhanced online chat service. This will help reduce wait times and call volumes by offering an alternative service channel, which will further improve the client experience.

A fair tax and benefits administration

• The recent pandemic has had a significant impact on Canada’s economy, resulting in increased consumer debt, a significant loss of employment, and a reduction in income of some small businesses and vulnerable Canadians. If economic weakness persists, or inflation increases significantly, this may place Canadians’ ability to make timely tax payments at further risk in the foreseeable future. In the context of Canada’s economic uncertainty, there is a risk that incentives and opportunities will increase for otherwise compliant taxpayers to participate in the underground economy. In addition, there is a risk to the public’s perception of fairness in the tax system related to the use of sophisticated offshore tax shelters by a small percentage of Canadians, which might impact the Agency’s ability to promote greater compliance. The growth in the national debt attributed to emergency pandemic spending creates added pressure on the CRA to provide greater transparency in the recovery of tax dollars, especially from individuals using offshore tax schemes and aggressive tax planning. Recent federal budget allocations should help mitigate these risks by enabling the CRA to direct additional resources toward addressing tax evasion and improving approaches to resolving tax debt. In regard to digital currencies, the CRA is actively monitoring emerging legislation and regulations to identify risks that may develop.

Enhanced security, transparency, and accountability

• The shift to widespread remote work arrangements and increased online economic activity, spurred by businesses’ response to public health direction during the pandemic, continues to influence CRA’s data and security-related risks in new and challenging ways. As information and activities by individuals and organizations move online, there is an increased risk that their information will become more exposed to cyber-threat activity, leading to increased identity theft and use of this information to access the CRA public-facing systems. In addition, the increase in remote CRA workers across the country requires the CRA to continually strengthen its overarching security program to ensure a common, organization-wide approach to protecting assets and information.

An innovative, data-driven organization

• The COVID-19 pandemic has allowed the CRA to explore new opportunities to leverage information, data, and analytics by adopting modern IT approaches, methodologies, tools, and techniques to assist with real-time virtual learning and experimentation. Along with these new opportunities, new risks surrounding data controls also presented themselves. However, the CRA implemented central support and horizontal coordination to better govern its data assets and capacity for data analytics to mitigate this risk.

A thriving diverse workforce and inclusive workplace

• The CRA must adhere to legislative requirements to protect taxpayer information and Canadians’ privacy, and face challenges with ensuring a consistent employee experience for a workforce that is spread across Canada. The CRA’s plan to roll out a short-term and long-term approach to the workplace of the future will play a significant role in controlling these risks and reducing additional exposure in areas such as employee well-being and psychological health and safety. The CRA may not be able to meet the needs and staffing requirements of the Agency to support a diverse workforce. The CRA also recognizes the risks surrounding talent recruitment that have grown in complexity with virtual work and the competition between the public and private sectors for talent. The CRA’s 2021–22 to 2024–25 Employment Equity, Diversity and Inclusion plan emphasizes the Agency’s commitment to creating a respectful, inclusive workplace free from discrimination and harassment, and a workforce representative of Canada’s diverse population. The CRA will continue to actively monitor emerging trends, drivers, and impacts on its workforce and work environment as the pandemic recedes.

Planned spending and human resources

Planned spending

Agency spending 2019–20 to 2024–25

The following graph presents planned (voted and statutory) spending over time.^{Footnote 8}

CRA spending trend (dollars)

A significant portion of the increase in the CRA’s overall budget is attributable to its statutory appropriations, in particular to spending associated with the Climate Action Incentive (CAI) payment. The CRA is responsible for the administration of the fuel charge in jurisdictions that do not meet the federal carbon pricing benchmark. This includes the delivery of the CAI payment which returns the majority of the direct proceeds from the fuel charge to individuals and families of the province in which the proceeds are raised.

Actual and forecast spending under the CRA’s voted appropriations for fiscal years 2019–20 to 2021–22 also includes technical adjustments such as the carry-forward from the previous year and funding for severance payments, parental benefits, and vacation credits. In addition to the aforementioned items, forecast spending in 2021–22 has increased significantly as a result of the administration of measures associated with the Government’s response to COVID-19 and new funding for measures announced in the 2021 Federal Budget. Over the planning period, the reduction in the CRA’s voted appropriations, from $4.120 billion in 2022–23 to $3.944 billion in 2024–25 is primarily as a result of a decrease or sunsetting of funding to implement and administer various measures announced in the federal budgets as well as those associated with the COVID-19 pandemic.

2022–23 Budgetary gross and net planned spending summary (dollars)

The following table reconciles gross planned spending with net planned spending for 2022–23.

Planned revenues netted against expenditures represent amounts to be recovered by the CRA for the provision of services to Employment and Social Development Canada for the administration of the Canada Pension Plan and the Employment Insurance Act.

Planned human resources

Human resources planning summary for core responsibilities and internal services

The following table shows actual, forecast and planned full-time equivalents (FTEs) for each core responsibility in the CRA’s departmental results framework and to Internal Services for the years relevant to the current planning year.

The increase in forecast full-time equivalents (FTE) in 2021–22 is largely attributable to the administration of measures associated with the Government’s response to COVID-19 and new funding for measures announced in the 2021 Federal Budget. Over the planning period, the reduction in FTEs from 46,819 in 2022–23 to 44,383 in 2024–25, is primarily as a result of a decrease or sunsetting of funding to implement and administer various measures associated with the COVID-19 pandemic.

Estimates by vote

Information on the CRA’s organizational appropriations is available in the 2022–23 Main Estimates^{Footnote ix}.

Future-oriented condensed statement of operations

The condensed future-oriented statement of operations for Agency activities, which includes only those operational revenues and expenses that are managed by the CRA and utilized in running this organization, provides a general overview of the CRA's operations. The forecast of financial information on expenses and revenues is prepared on an accrual accounting basis to strengthen accountability and to improve transparency and financial management. The forecast and planned spending amounts presented in other sections of this Plan are prepared on an expenditure basis; as a result, amounts may differ. A more detailed future-oriented statement of operations and associated notes, including a reconciliation of the net cost of operations to the requested authorities, are available on the CRA’s departmental webpage.

Corporate information

Organizational profile

Minister: The Honourable Diane Lebouthillier P.C., M.P.

Ministerial profile: National Revenue

Institutional head: Bob Hamilton

Enabling instrument: Canada Revenue Agency Act

Chair, Board of Management: Suzanne Gouin

Year of commencement: 1999

Raison d’être, mandate and role: who we are and what we do

The Canada Revenue Agency Act sets out the mandate, structure and authorities of the CRA. It establishes a governance structure that is unique in Canada, comprising a Minister, Board of Management (the Board), Commissioner and Taxpayers’ Ombudsperson. The Minister is responsible to Parliament for all CRA activities and exercises powers relating to regulation making and providing reports to Parliament or the Governor in Council (Cabinet). The Board is responsible for overseeing the organization and administration of the CRA and the management of its resources, services, property, personnel and contracts. It is also responsible for developing the Corporate Business Plan. The CRA is headed by a Commissioner who is accountable to the Minister and must assist and advise them with respect to legislated authorities, duties, functions and Cabinet responsibilities. As the CRA’s chief executive officer, the Commissioner is responsible for the day to day management of the CRA. The mandate of the Ombudsperson is to enhance the accountability of the CRA in its services to taxpayers by offering a service complaint mechanism that is independent of the CRA. The Ombudsperson is responsible for upholding the Taxpayer Bill of Rights.

The Minister of National Revenue is responsible for the CRA. The raison d’être of the CRA is to administer taxes, benefits, and related programs for governments across Canada. The CRA contributes to the economic and social well-being of Canadians by making sure that:

• clients receive the information and services they need to comply with their tax obligations
• clients receive the benefits for which they are eligible
• non-compliance is addressed
• clients have access to appropriate mechanisms for resolving disputes

The CRA’s mandate is legislated through acts including the Income Tax Act, the Excise Tax Act and the Excise Act, which the CRA administers. In fulfilling its core responsibilities, the CRA’s role is to collect taxes on behalf of most provinces and territories, as well as many self-governing Indigenous governments, to collect certain non-tax debts for the federal government and to administer legislation relating to charities, the Canada Pension Plan, other registered plans and the employment insurance program.

Operating context

As the CRA pursues the strategic objectives and advances the priorities set out in this plan, a number of external and internal factors must be considered that are likely to have an impact on the achievement of its plans during 2022–23 and beyond.

COVID-19

The CRA has been a major contributor to the success of Canada’s COVID-19 Economic Response Plan requiring significant internal resources to be reallocated to administer COVID-19 benefits. In 2022–2023, the CRA will continue to administer the following extended emergency measures and recovery benefits to provide targeted support that will assist Canadians and businesses that continue to require it due to the COVID-19 pandemic:

• the Canada Recovery Caregiving Benefit;
• the Canada Recovery Sickness Benefit; and
• the Canada Recovery Hiring Program.

In addition, the CRA will also administer the following individual income support benefit and business support programs:

• the Canada Worker Lockdown Benefit,
• the Tourism and Hospitality Recovery Program, including support in the event of a qualifying public health restriction; and
• the Hardest-Hit Business Recovery Program.

While the CRA successfully implemented these emergency benefit and subsidy programs, and continues to do so as these programs evolve, challenges remain both in responding to clients’ need for greater information and to maintain the integrity of all COVID-19 benefit programs that it administers. The CRA continues to monitor for suspicious activity, implement new controls to protect the integrity of the program, and ensure that only eligible Canadians are receiving payments.

The operating environment for the CRA contact centres has changed as the delivery of the COVID-19 emergency benefits, and the impact of the recent economic situation, has led to a significant increase in call volumes and call handle time. The CRA’s contact centres were an instrumental component of Canada’s early response to the pandemic and continue to be a critical service for Canadians and businesses concerning both tax issues and benefits. The CRA will continue to seek solutions to reduce wait times and provide the service that Canadians have come to expect.

To detect, prevent, and address potential instances of fraud and identity theft, the CRA continues to monitor, investigate, and resolve individual accounts and emergency and recovery benefit applications. Canadians are able to report suspicious activities on their accounts through both phone and web channels.

Digital Transformation

Technological advancement and consumers’ shift to online commerce is revolutionizing daily life, while new business and employment models are reshaping the global economy. The CRA must keep abreast of the evolution of digital tax compliance risks and harness emerging technologies to help it streamline its own operations, and improve how it manages its data to facilitate more informed decision-making. The CRA’s Digital Transformation Officer is playing a pivotal role in implementing a comprehensive, integrated approach to a digital change agenda that fuses modern technology with contemporary business practices to deliver services in simple, modern, and effective ways that are designed for digital platforms.

Safeguarding data

In today’s increasingly connected world, all organizations must constantly take steps to safeguard sensitive information against evolving threats. Security and reputational risks, such as scams, identity theft, and cyberattacks, have significant potential to affect the CRA’s business operations. The rapidly changing business environment and the digitalization of the economy have resulted in the need for the CRA to develop systems and approaches to adapt quickly to emerging risks that jeopardize the revenue base. The CRA has been investing in business intelligence, advanced analytics, artificial intelligence, and related technologies and infrastructure to better identify high risk cases of non-compliance. The CRA recognizes that security must be managed in a proactive and holistic manner and is working to enhance its information technology security strengthen its overall security posture in accordance with industry best practices.

Diversity and inclusion

Canada is one of the most diverse countries in the world. One-fifth of Canada’s people were born outside Canada and, by 2031, almost a third of Canadians will be visible minorities. Canada’s Indigenous population is growing at more than four times the rate of the non-Indigenous population. Estimates of people who identify as LGBTQ2+ in Canada range from 5% to 13%. One in seven adult Canadians self-identify as having a disability. By the age of 40, 1 in 2 Canadians has or have had a mental illness. Renewed efforts to enhance diversity and inclusion have resulted following worldwide calls to action to create a more just society with fewer systemic barriers to inclusion for marginalized groups like Indigenous peoples, racialized people and persons with disabilities. Leading organizations have demonstrated that they are more successful when they leverage the advantages that come from their entire pool of talent. The Clerk of the Privy Council has identified diversity and inclusion in the federal Public Service, especially in leadership, as a top Government of Canada priority. The CRA is committed to developing a more diverse workforce and inclusive workplace.

CRA staffing principles

Staffing principles related to a successful staffing program:

Staffing principles related to an effective workforce:

Supplementary Information Tables

The following supplementary information tables are available on the CRA’s departmental webpage^{Footnote x}:

• CRA’s Departmental Sustainable Development Strategy
• Details on transfer payment programs
• Gender-based analysis plus
• United Nations 2030 Agenda and the Sustainable Development Goals
• Future-oriented statement of operations

Federal tax expenditures

This Plan does not include information on tax expenditures.

Tax expenditures are the responsibility of the Minister of Finance. The Department of Finance Canada publishes cost estimates and projections for government-wide tax expenditures each year in the Report on Federal Tax Expenditures^{Footnote xi}. This report provides detailed information on tax expenditures, including objectives, historical background and references to related federal spending programs, as well as evaluations, research papers and gender-based analysis plus.

Organizational contact information

Mailing address:

Connaught building
555 MacKenzie Avenue
Ottawa ON K1A 0L5

Telephone: 613-957-3688

Fax: 613-952-1547

Website: www.canada.ca/en/revenue-agency^{Footnote xii}

Appendix: definitions