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Top Recommendations from the Business Community and Highlights of CRA Plans 1

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Top Recommendations from the Business Community and Highlights of CRA Plans 1 1 For copyright information, please visit the CRA website at www.cra.gc.ca/cpyrght-eng.htmli Table of Contents A message from the Minister - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -4 Foreword by the Chair - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -6 A message from the Commissioner - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -8 Section 1: Organizational Expenditure Overview - - - - - - - - - - - - - - - - - - - - 11 Organizational profile - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11 Organizational context - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11 Actual expenditures - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 22 Alignment of spending with the whole-of-government framework - - - - - - - - - - - - - - - - - - - - - - - - - 24 CRA spending trend - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 25 Estimates by Vote - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 26 Section 2: Analysis of Programs by Strategic Outcomes - - - - - - - - - - - - - - - - - 28 Taxpayer and Business Assistance - - - - - - - - - - - - - - - - - - - - - - - - - - - 29 Taxpayer Services – Enquiries and Information Products- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 30 Registered Plans - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 33 Policy, Rulings, and Interpretations- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 33 Charities- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 34 Assessment of Returns and Payment Processing - - - - - - - - - - - - - - - - - - 38 Individual Returns and Payment Processing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 39 Business Returns and Payment Processing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 42 Reporting Compliance - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 47 International and Large Business - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 48 Small and Medium Enterprises - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 51 Scientific Research and Experimental Development - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 57 Criminal Investigations Program - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 58 Voluntary Disclosures Program - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 59 Collections and Returns Compliance - - - - - - - - - - - - - - - - - - - - - - - - - - 62 Trust Accounts – Compliance - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 63 Non-Filer – Compliance - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 64 Collections – Tax and Government Programs - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 65 Appeals - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 71 Income Tax Objections, Determinations, and Appeals to the Courts - - - - - - - - - - - - - - - - - - - - - - - - - 72 Commodity Taxes Objections, Determinations, and Appeals to the Courts - - - - - - - - - - - - - - - - - - - - - 72 Canada Pension Plan/Employment Insurance Appeals to the Minister and Appeals to the Courts - - - - - - - - 73 Service Complaints - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 73 Taxpayer Relief - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 74 Benefit Programs - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 78 Benefit Enquiries - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 79 Benefit Programs Administration - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 79 Internal Services - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -84 Section 3: Supplementary information - - - - - - - - - - - - - - - - - - - - - - - - - - - 90 Financial Statements Highlights - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 90 Financial Statements - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 92 Supplementary Information Tables - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 154 Tax Expenditures and Evaluations - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 154 Section 4: Organizational Contact Information - - - - - - - - - - - - - - - - - - - - - 155 Appendices - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 157 Appendix A – Agency governance and the Board of Management - - - - - - - - - - - - - - - - - - - - - - - - 157 Appendix B – Service standards - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 164 Appendix C – Other items of interest - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 173 Appendix D – Definitions - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 175 Endnotes- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 177 Canada Revenue Agency 3 A message from the Minister As the new Minister of National Revenue, I am proud to lead the Canada Revenue Agency (CRA). I would like to thank the Commissioner and his team for their warm welcome since Iwas appointed by the Prime Minister of Canada. I have no doubt that the CRA works tirelessly to improve the services that it offers to its clients, consisting of millions of taxpayers, be they individuals, benefit recipients, entrepreneurs, and tax professionals. This annual report includes a detailed account of achievements and issues at the CRA in 2014‐2015. Although I have been on the job for only a short time, dI woul like to take the opportunity of this first “Message from the Minister” to present the main elements of the mandate the Prime Minister has given me so that I can tell you what is in store for the CRA in the near future. My main objectives as Minister of National Revenue, as defined in my mandate letter, are to draw on the well‐established reputation of the CRA as a fair and equitable organization and to facilitate access to its services. I therefore plan to lead the work to overhaul our service model so that everyone who interacts with the CRA is treated like a valued person, not just ataxpayer. In particular, I will work with my colleagues through legislative, regulatory, and Cabinet processes to deliver on my top priorities, described below, which stem directly from our commitments during the election campaign. First, I want to ensure that the CRA is a client‐focused organization that: > takes the initiative to contact Canadians who are not receiving the tax credits or benefits they are entitled to; > offers to complete returns for some clients, particularly those with lower incomes or fixed incomes, whose financial situation does not change from year to year; > supports more Canadians who want to file their income tax returns without using paper forms; and > delivers correspondence and other communications that are clear and easy to read. My second priority will be to allow charities to do their work on behalf of Canadians free from political harassment, and work with the Minister of Finance to modernize the rules governing the charitable and not‐for‐profit sectors. 4 Canada Revenue Agency The CRA has a strong tradition of providing guidance and support to Canadians in understanding and meeting their tax obligations. — Diane Lebouthillier To this end, the rules governing “political activity” will need to be clarified, while keeping in mind that charities make an important contribution to public debate and public policy. A new legislative framework to strengthen the sector will emerge from this process. This will also require work with the Minister of Families, Children and Social Development to develop a social finance and social enterprise strategy. Finally, additional resources will be invested to help the CRA crack down on tax evaders and work with international partners to adopt strategies to combat tax avoidance. Over the coming weeks, with the assistance and opinions of experts at the CRA, we will put the final touches on our plans and will work to make our commitments and our priorities areality. I plan to adopt the new government’s values as my own: an open, honest government that is accountable to Canadians, that lives up to the highest ethical standards, and that applies the utmost care and prudence in handling public funds to earn the trust and respect of Canadians. The CRA has a strategic role that affects all Canadians. I am pleased to lead the CRA so that we continue to offer Canadians the quality services that they expect and deserve. It is therefore
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