Purpose

• As the Minister of National Revenue, you are accountable to Parliament and the Prime Minister for the operations of the Canada Revenue Agency (CRA).
• The CRA plays a key role in helping the government achieve its objectives, through tax assessment, benefit delivery, revenue collection, and audit. The Agency administers revenue and pension contributions of over $586 billion and issues $46 billion in benefits.
• This presentation will provide you with an overview of the CRA and demonstrates the support we will offer you in achieving the government's priorities.

The role of the Minister of National Revenue

This is an image of the Connaught building, the headquarters of the CRA located in Ottawa, Ontario.

• Along with the Minister of Finance and other Cabinet members, you influence and shape government policy and legislation
• As Minister of National Revenue, you engage CRA management and key external stakeholders to discuss broad policy issues and direction, and you help guide our activities and shape our future
• You also appoint members to your ministerial advisory committees and recommend other appointments to the Governor-in-Council

You are supported by

• The Commissioner and Chief Executive Officer of the CRA, who is responsible for the day-to-day management and direction of the CRA. The commissioner is supported by a deputy commissioner.
• The Deputy Commissioner of the CRA exercises the powers, duties, and functions assigned by the Commissioner and also acts as Commissioner in the event of absence, incapacitation, or vacancy.
• The CRA’s Board of Management (Board), which oversees the organization and administration of the CRA and the management of its resources, services, property, personnel, and contracts. The Board may advise the minister on matters relating to the general administration and enforcement of program legislation.
• The CRA’s management and employees, to whom many of the CRA’s decisions, including those related to specific taxpayer cases, are delegated.
• The Taxpayers’ Ombudsperson, who advises and informs the minister about any matter relating to CRA services provided to taxpayers, and upholds key elements of the Taxpayer Bill of Rights.

What we do

• The CRA administers tax, benefits, and related programs on behalf of all levels of governments across Canada, thereby contributing to the ongoing economic and social well-being of Canadians
  • The Minister of Finance develops policy and legislation on tax matters, while the ministers responsible for Employment and Social Development Canada develop legislation for benefits such as Employment Insurance (El) and the Canada Pension Plan (CPP)
• The CRA is also the de facto regulator of charities in Canada due to the tax benefits registered charities can receive
• The CRA engages a variety of stakeholder groups, such as industry associations, other regulatory bodies, and professional organizations, to advance our shared interests
• Internationally, the CRA collaborates with other tax jurisdictions and in multilateral fora such as the Organisation for Economic Co-operation and Development to promote and influence international tax standards, improve compliance, and support the strengthening of tax administration capacity globally.

Being an Agency

• The CRA's governance structure is more complex than most departments given its status as an Agency with unique authorities
• The Canada Revenue Agency Act gives the Agency authority over all matters relating to:
  • General administrative policy
  • The organization of the Agency
  • Real property and immovables (administered by Public Services and Procurement Canada)
  • Human resources management, including the determination of the terms and conditions of employment of persons employed by the Agency
  • Internal audit
• The CRA generally strives to maintain alignment with Treasury Board policies applicable to the core public service in these areas
• The CRA has a Board of Management that is responsible for overseeing its organization and administration, and the management of its resources, services, property, personnel and contracts

We are a large, national organization

• Image description

  This graphic, entitled “We are a large, national organization,” is a map of Canada showing the CRA's employee representation across the country, separated by region. Starting on the west coast, the CRA's Western region (including the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, as well as the Yukon and Northwest Territories) makes up 14,082 full time equivalent employees (FTEs). Moving east, the Ontario region (including Ontario and Nunavut) makes up 14,142 FTEs. The Headquarters region (located in Ottawa, Ontario) makes up 20,956 FTEs. Second-last on the east is the Quebec Region, which makes up 7,100 FTEs. On the furthest east, the Atlantic region (including New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador) makes up 6,059 FTEs. Above the map, the national total of CRA employees is shown, making up 62,339 FTEs.

Source: CRA Monthly Demographic Employee Profile by Region - May 2023

Tax and benefit administration has many functions

• Image description

  This graphic entitled “Tax and benefit administration has many functions,” depicts a process flow map diagram for CRA operations. In the top-left corner is the heading “Channels” and below are four purple icons placed horizontally depicting the four channels for Canadians to communicate with the CRA. The first icon on the left is an envelope with the text “mail” below. The second icon is a silhouette of a person with the text “in-person” below. The third icon is a computer monitor and smartphone with the text “online” below. The fourth icon is a phone with the text “contact centre” below.

  A process flow map diagram appears below the four channels. Along the left side of the process flow map, there are four icons placed vertically to represent the four types of CRA clients:

  • The icon at the top is the silhouette of a person; beneath the icon is the text "individual"
  • The second icon is the silhouette of two adults and a child; beneath the icon is the text "family"
  • The third icon is the outline of three buildings; beneath the icon is the text "business"
  • The fourth icon is the silhouette of a person with a dollar-sign below; beneath the icon is the text "tax intermediary"

  A purple line starts from the four client icons and leads across to the right of the graphic, connecting to images representing the different functions of tax and benefits administration:

  • The first image is a lightbulb labeled "providing information, facilitating filing, and conducting outreach"
  • The next image is a computer screen labeled "account registration and authentication"
  • The next image is a clipboard labeled "tax filing and benefit application"
  • The next image is a silhouette of a person labeled "CRA (re)assessment and benefit determination"
  • The next image is a notification bell labeled "issuance of document(s) e.g., notice of assessment"
  • The next image is a magnifying glass labeled "verification/audit"
  • The next image is of the scales of justice labeled "redress (objections and appeals)"
  • The last image at the end of the purple line on the right side of the graphic is an open hand labeled "collections"

The CRA engages with external experts and partners

• The following external advisory committees provide advice on CRA operations and policies in their focus areas:
  • Advisory Committee on the Charitable Sector
  • Disability Advisory Committee

  • Independent Advisory Board on Eligibility for Journalism Tax Measures

    Note: See Annex for committee mandates.

• The CRA engages with international organizations including other tax jurisdictions
• Key federal, provincial and territorial partners including:
  • Provincial and territorial governments
  • Revenu Québec
  • Department of Finance
  • Department of Justice
  • Employment and Social Development Canada
  • Service Canada
  • Treasury Board of Canada Secretariat
  • Shared Services Canada

And other key stakeholders

• The CRA also engages with the industry associations and civil society organizations to obtain a better understanding of their perspective on key strategic issues which may have an impact on their organizations as well as on the CRA clients they serve
• Examples of organizations with which the CRA engages:
  • National Payroll Institute
  • Chartered Professional Accountants of Canada
  • Canadian Federation of Independent Business
  • Tax-Filer Empowerment Canada
  • Canadian Bankers Association
  • Canadian Tax Foundation
  • Canadian Taxpayers Federation
  • Canadian Chamber of Commerce
  • Canadian Bar Association
  • Tax Executive Institute
  • Efile Association of Canada

For many Canadians, the main interaction with the Government is their tax filing experience

• The CRA offers a variety of tools and services to support tax filing:
  • Auto-fill my return, is a secure digital service that allows individuals and authorized representatives using certified software, to automatically fill in parts of a tax return with information the CRA has on file at the time of the request
  • The CRA secure portals allow individuals and businesses to interact with the CRA online. Users are able to view their notice of assessment or reassessment, change their return, submit documents, make payments, update account information, receive email notifications, view any uncashed cheques and more
• The CRA is undertaking a digital transformation to enhance the services that are delivered to Canadians, as well as the mindsets, tools and business processes that support these services

Key facts and figures 2022-23 - tax filing experience

• Approximately 92% of Canadians participate in the tax and benefit system
• 92% of individual income tax and benefit returns and 94% of corporation income tax returns were filed digitally
• 96% of GST/HST returns were filed digitally (excluding RQ)
• Approximately 90% of individual tax returns are filed on time

CRA revenue collections

• The CRA collects taxes on behalf of the Government of Canada, most provinces and territories, and some First Nations
• The CRA also undertakes a variety of activities to collect debts on behalf of other government programs (e.g., social program overpayments, Canada Student Loan)
• The revenues collected by the CRA are critical in supporting government programs, services, and investment priorities

Key facts and figures

• Administer approximately $586 billion in revenue and pension contributions
• In 2022-23 we contacted approximately 44,088^{Footnote 1} businesses via the Liaison Officer service to increase awareness and help them to better understand their tax obligations

The economic and social well-being of Canadians is supported by the delivery of benefits and tax credits

• Our overarching goal is to ensure Canadians are aware of and receive the benefits and credits to which they are entitled
• The CRA undertakes significant efforts to reach people, in particular vulnerable populations, to increase benefit uptake
• The CRA works with provincial, territorial and federal partners, the private sector, and non-governmental organizations to support our efforts
• The CRA continued to support Canadians and Canadian businesses through the COVID-19 pandemic. Millions of Canadians and tens of thousands of businesses received timely benefits and subsidies to help protect them and recover from the unprecedented challenges posed by the pandemic
• The CRA is administering the new interim Canada Dental Benefit (CDB), to help lower the cost of dental care for parents and guardians of eligible children who do not have access to private dental insurance

Key facts and figures 2022-23 - benefits and tax credits

• Over $46 billion in benefits issued
• 649,420 people were helped through the Community Volunteer Income Tax Program (CVITP)

Emergency Measures

In 2022-23, the CRA continued to administer several existing emergency measures and recovery benefits to help Canadians and businesses facing hardship because of COVID-19. The table below lists the COVID benefits and subsidies the CRA administered in 2022-23. The Agency’s focus is now shifting to verification and compliance.

Canadians' level of compliance is impacted by the CRA's reputation and perceived fairness

• Non-compliance ranges from accidental error (making honest mistakes) to intentional (willfully seeking to mislead the CRA)
• Our responses are tailored to the type of non-compliance:
  • Focus on education and facilitation to help those who want to comply
  • Enforcement efforts target high-risk individuals and corporations, and the underground economy
  • The CRA collaborates with our international partners to combat tax evasion
• Canadians have the right to a fair and impartial review through the redress process, including the court system, as outlined in the legislation administered by the CRA and confirmed in the Taxpayer Bill of Rights
• The CRA has a number of active court cases, including some with very high profiles, all of which are being litigated by the Department of Justice

Canadians expect their information to be protected

• The CRA has one of the largest holdings of personal information in Canada and Canadians expect us to protect it by:
  • Managing information and data
  • Ensuring appropriate safeguards are in place
  • Governing the use of new and emerging technology
  • Adhering to privacy and confidentiality obligations set out in the Privacy Act and other laws (e.g., section 241 of the Income Tax Act)
• Any impact on our reputation could reduce trust in the CRA, and ultimately compliance
• The CRA has rigorous controls to protect personal information and regularly monitors and enhances these controls
• The CRA is addressing an increase in the frequency and sophistication of security threats and raising the profile of security and privacy

Canadians expect seamless service

• We are creating opportunities to accelerate digitalization across the CRA’s programs and services to meet the evolving needs of Canadians
• The CRA is undertaking an enterprise-wide digital transformation to create a digital tax and benefit administration where:
  • People ore equipped and empowered to successfully adapt to the new ways of working and thinking
  • Processes are reimagined, modernized and shared across all relevant programs
  • Technology is designed and adapted through modern, agile, secure and user-centred approaches

Communications is key to achieving results

We are guided by our Strategic Planning Framework

• Image description

  The CRA’s Strategic Planning Framework links its strategic priorities and guiding principles to its mission, vision, values, and ultimate outcomes.

  The CRA’s mission is to: Administer tax, benefits, and related programs, and ensure compliance on behalf of governments across Canada, thereby contributing to the ongoing economic and social well-being of Canadians.

  The CRA’s vision is: A world-class tax and benefits administration that is trusted, fair, and helpful by putting people first.

  The strategic priorities state what the organization will do over the planning period:

  • Deliver seamless client experiences and tailored interactions that are digital first;
  • Combat aggressive tax planning and tax evasion;
  • Strengthen security and safeguard privacy; and
  • Nurture a high-performing, divers and inclusive workforce in a modern, flexible and accessible workplace.

  The overall outcomes of the Strategic Planning Framework are:

  • Taxpayers comply with Canadian tax obligations;
  • The right tax revenue is secured for Canadians;
  • Canadians receive their rightful benefits; and
  • Canadians have trust in the CRA.

  The guiding principles articulate how the CRA will achieve its strategic priorities:

  • Apply a user-centric approach to the design and delivery of programs and services;
  • Enhance enterprise-wide and data-driven approaches to planning, decision-making, and performance measurement; and
  • Drive effectiveness through collaboration and partnerships.

We have important work ahead of us

• The CRA remains committed to delivering client-centric service, while also securing the fairness of the tax system by ensuring everyone pays their fair share.
• Some highlights from the Federal Budget 2023 include:
  • The Grocery Rebate – an additional GST credit payment equivalent to twice the eligible amount for January 2023. The payments were issued in July 2023.
  • Commitment to ensuring more low-income Canadians have the ability to quickly and easily auto-file their tax returns by increasing the number of eligible Canadians for File My Return to two million by 2025—almost triple the current number.
    • Starting next year, the CRA will pilot a new automatic filing service that will help vulnerable Canadians who currently do not file their taxes receive the benefits to which they are entitled.

Annex: External Advisory Committee Mandates

Advisory Committee on the Charitable Sector: The Advisory Committee on the Charitable Sector (ACCS) is a consultative forum for the Government of Canada to engage in meaningful dialogue with the charitable sector, to advance emerging issues relating to charities, and to ensure the regulatory environment supports the important work that charities do. The ACCS is co-chaired by the charitable sector and the Canada Revenue Agency (CRA). It provides recommendations to the Minister of National Revenue and the Commissioner of the CRA on important and emerging issues facing registered charities and other qualified donees on an ongoing basis.

Disability Advisory Committee: The Disability Advisory Committee advises the Minister of National Revenue and the Canada Revenue Agency (CRA) on how the Agency can improve the way it administers and interprets tax measures for Canadians with disabilities.

Independent Advisory Board on Eligibility for Journalism Tax Measures: The Advisory Board’s mandate is to provide an independent assessment and make written, non-binding recommendations as to whether an organization meets certain criteria to be designated as a qualified Canadian journalism organization (QCJO). Specifically, whether an organization produces original news content, and regularly employs two or more journalists who deal at arm’s length with the organization in the production of its content.