2021–2022 Departmental Results Report

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, by taking compliance and enforcement actions when necessary to uphold the integrity of the system, and by offering avenues for redress when clients disagree with an assessment or decision. 

Clients obtain the support and information they need to know what 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. 

In the 2021–2022 fiscal year (April 1, 2021 to March 31, 2022), the CRA identified five strategic priorities to help fulfill its core responsibilities:

• Providing a seamless, empathetic and client-centric service experience
• Enhancing the fairness of Canada’s tax and benefit administration
• Strengthening trust through enhanced security, transparency and accountability
• Fostering an innovative and data-driven organization
• Promoting a thriving and inclusive workforce

These priorities supported the CRA’s departmental results:

• Core responsibility Tax: Taxpayers comply with Canadian tax obligations, the right tax revenue is secured for Canadians, and Canadians have trust in the CRA
• Core responsibility Benefit: Canadians receive their rightful benefits

For the six departmental indicators with targets, four met their target. The indicator “percentage of Canadians who participate in the tax system” was slightly below its target. New targets were established for these other Departmental Results Indicators (DRI), as noted in the CRA’s 2022–23 Departmental Plan.

In 2021–2022, the CRA met 56 (80%) of its 70 commitments under these five priorities. This report provide highlights of some of the results achieved as well as a rationale for all of the commitments that were not met within their planned timelines. The following chart illustrates the percentage of commitments that were achieved according to each of the CRA’s strategic priorities: 

In pursuing these priorities, the CRA achieved the following key results: 

• continued to administer several existing emergency measures and recovery benefits to help Canadians and businesses facing hardship because of COVID-19
• implemented several new programs to support job creation and economic recovery. These programs were the Canada Recovery Hiring Program, the Canada Worker Lockdown Benefit, the Hardest-Hit Business Recovery Program, and the Tourism and Hospitality Recovery Program that received 3,325,500 applications received and paid $3.4 billion in benefits and subsidies to help Canadians and Canadian businesses affected by the COVID-19 pandemic
• assisted about 575,000 people in filing approximately 640,000 returns in 2021 through the Community Volunteer Income Tax Program, resulting in over $1.4 billion in refunds and benefits
• continued to expand its automated callback service with 1,385,276 calls made and trained its front-line telephone agents to resolve the most frequent issues concerning COVID-19 benefits applications on the first call
• created an online service feedback form to offer more options for Canadians to submit service feedback 
• funded four projects through the CRA’s Innovation program which were related to gamification in internal and external services and virtual integration of new employees
• published an internal report called “CRA accessibility surveys 2019 – Internal consultation - What We Heard”. The report examines the current state of diversity, inclusion and anti-racism at the CRA

Tax filing for simple returns was automated further to ensure clients receive the benefits for which they are eligible. To that end the CRA:

• added a new digital tool to My Account that simplified the verification of tax returns to give clients and their representatives an accelerated, accessible, and convenient channel to communicate with the CRA
• implemented a tracker in 2021–2022 so clients could follow the progress of applications for the disability tax credit, requests for relief from penalties and interest, and formal dispute objections
• introduced multi-factor authentication throughout 2021–2022, providing an added layer of security to CRA accounts and information to help increase the protection of client data from unauthorized access, change or loss. The CRA also relaunched its “Be Scam Smart” campaign in to assist protect clients in protecting themselves against scams and frauds

The CRA fell short on fourteen of the 70 commitments including:

• start online delivery of collections letters to clients through portals such as My Account and My Business Account 
• enhance caller experience on our telephone enquiries lines and improve the quality and accuracy of answers by using speech analytic technology to capture valuable insights from calls to inform and support changes to agent tools, training and coaching 
• make it easier for Canadians to find online answers to questions about small businesses, life events, and tax preparation by making measurable improvements to users’ task success rate during user experience testing

In working toward these results, the CRA’s actual spending was $9,489,294,614 and its actual full-time equivalents (FTEs) were 49,950. The increase in actual FTEs in 2021–2022 is largely attributable to the administration of measures associated with the Government of Canada’s response to COVID-19 and new funding for measures announced in the 2021 Federal Budget.

The following sections provide some of the key performance results achieved by the CRA during the 2021–2022 fiscal year.

For more information on the CRA’s plans, priorities and results achieved, see the Results section of this report.

Supporting Canadians and businesses through the pandemic

The CRA played a leading role in the Government of Canada’s response to the COVID-19 pandemic to ensure that those who were most affected by the pandemic continued to receive the support they needed. 

In 2021–2022, the CRA continued to administer several existing emergency measures and recovery benefits to help Canadians and businesses facing hardship because of COVID-19. For example, the Canada Recovery Benefit was extended to October 23, 2021, and the Canada Recovery Caregiving Benefit, and the Canada Recovery Sickness Benefit were extended to May 7, 2022. The CRA also implemented several new relief programs to support job creation and a strong economic recovery while helping Canadians and businesses deal with the impacts of evolving COVID-19 variants. These new programs were:

• the Canada Recovery Hiring Program ⁱ
• the Canada Worker Lockdown Benefit ⁱⁱ
• the Hardest-Hit Business Recovery Program ⁱⁱⁱ
• the Tourism and Hospitality Recovery Program ^iv

Throughout the reporting period, the CRA continued to ensure that access to COVID-19 benefits and subsidies was simple and clear and that it made payments to those in need as quickly as possible. At the same time, the CRA continued to monitor for fraud and suspicious activity. It implemented necessary controls to protect the integrity of these programs and help ensure that only eligible Canadians and businesses were receiving benefit and subsidy payments. 

The table below lists the benefits and subsidies the CRA administered in 2021–2022, as part of the Government of Canada’s Economic Response Plan^v, for individuals, businesses, and other organizations.

The amounts in this table are cumulative from the inception of the respective programs as of April 3, 2022.

In addition to administering COVID-19 benefits and subsidies, the CRA continued adapting and improving its services to the virtual environment to overcome challenges presented by the pandemic. 

• The Community Volunteer Income Tax Program,^xvi which supports free tax clinics for vulnerable segments of Canada’s population (adults 65+, housing insecure individuals, Indigenous peoples, modest income individuals, newcomers, persons with disabilities, and students), continued using virtual clinics and other modified methods (for example, videoconference and by phone). Through new partnerships and by implementing COVID-19 protocols, early indications are that the 2022 calendar year will show even larger numbers as the program rebounds. 
• The Liaison Officer Service^xvii which helps small businesses and self-employed individuals meet their tax obligations through one-on-one visits and group seminars, continued offering services virtually, through telephone and secure videoconference. Moreover, virtual offerings have reduced or eliminated the need for travel, allowing the Liaison Officer Service to be offered to a greater number of businesses.

The CRA collaborated with many national stakeholders in 2021–2022 to provide information and answer questions from individuals, businesses, charities, and members of other organizations. The purpose of these sessions was to help attendees understand general changes for the 2022 tax filing season and other tax matters, including federal COVID-19 support programs aimed at some of the hardest-hit industries (for example, small businesses and the tourism and hospitality sectors).

Impact on operations

In its 2021–2022 Departmental Plan^xviii, the CRA committed to implementing improvements to better serve Canadians and protect the integrity of Canada’s tax and benefits systems. In response to the ongoing nature of the pandemic, the CRA’s continued priority was delivering the Government of Canada’s emergency relief measures. Consequently, the CRA delayed completing certain commitments, which have been identified in the Results chapter, to a later date.

Through the pandemic, the CRA modernized its service approach and work environment and is applying the lessons learned from its response to COVID-19. The CRA continues to innovate with virtual workplaces, agile technology development, accelerated digital solutions, and workforce flexibilities. The following are some initiatives the CRA implemented to improve its operations and services:

• Individual tax tiling assistance initiative^xix – The CRA added a toll-free number to letters it sent to taxpayers encouraging them to file so they could apply for benefits. This was done to assure taxpayers that the letters were authentic 
• Let us help you get your benefits^xx – The CRA better aligned the release of simplified forms for Indigenous peoples with the tax-filing season, so participants did not pursue other filing avenues before they knew about this simplified method
• Disability tax credit^xxi – The CRA developed more flexible administrative procedures and accelerated the shift from a paper-based to a digital application while consulting closely with the disability community and reducing the burden on medical practitioners

In addition to administering a number of existing and new COVID-19 emergency measures and recovery benefits in 2021–2022, the CRA fully resumed operations. Further to its commitment to its People First philosophy, the CRA ensured that it carefully coordinated and monitored all stages of its business resumption to ensure the ongoing safety and well-being of both its clients and employees. Throughout 2021–2022, the CRA remained in the pandemic phase of this transition plan while achieving site, information technology, and workforce readiness for an in office presence once conditions allow. The CRA also prepared a transition plan towards a hybrid model of working once public health guidance and other factors allow for a gradual return to the office.

The CRA is committed to safeguarding the health and safety of its employees and regularly monitors how they are experiencing the pandemic with employee surveys. This past fiscal year, the CRA made additional resources available to managers to help them support their teams, and it gave all employees access to a modernized Employee Assistance Program.

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 it has made, the CRA offers avenues for redress.

Budgetary financial resources (dollars) for tax

The following table shows, for the tax core responsibility, budgetary spending for 2021–2022, as well as actual spending for that year.

Financial, human resources and performance information for the CRA’s Program Inventory is available in GC InfoBase^xxii.

Human resources (full-time equivalents) for tax^{Footnote 9}

The following table shows, in full time equivalents, the human resources the department needed to fulfill this core responsibility for 2021–2022.

Financial, human resources and performance information for the CRA’s Program Inventory is available in GC InfoBase^xxiii.

Description: The CRA’s core responsibility for benefits is to ensure that clients obtain the support and information they need to know what 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.

Budgetary financial resources (dollars) for benefits

The following table shows budgetary spending for 2021–2022 for the benefits core responsibility, as well as actual spending for that year.

Financial, human resources and performance information for the CRA’s Program Inventory is available in GC InfoBase^xxiv.

Human Resources (Full-Time Equivalents) Full-time equivalents for benefits

The following table shows the human resources the department needed in full-time equivalents to fulfill this core responsibility for 2021–2022.

Financial, human resources and performance information for the CRA’s Program Inventory is available in GC InfoBase^xxv.

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.

Budgetary Financial Resources (dollars) for Internal Services

The following table shows budgetary spending for 2021–2022 for internal services, as well as actual spending for that year.

Financial, human resources and performance information for the CRA’s Program Inventory is available in GC InfoBase^xxvi.

Human Resources (Full-Time Equivalents) For Internal Services^{Footnote 18}

The following table shows the human resources the department needed to carry out its internal services for 2021–2022.

Financial, human resources and performance information for the CRA’s Program Inventory is available in GC InfoBase^xxvii.

The CRA carries out its social responsibility through initiatives and events it promotes, including the following events. 

Awareness campaigns and events

Mental health

• Mental Health Week (May 2 to 8, 2021) promoted mental health
• Bell Let’s Talk Day (January 26, 2022) raised awareness and combatted stigma surrounding mental illness in Canada

Diversity and Inclusion

• Orange Shirt Day and National Day for Truth and Reconciliation (September 30, 2021) honoured First Nations, Inuit and Métis residential school survivors, as well as their families and communities, and commemorated our shared history and the legacy of residential schools as an essential part of reconciliation 
• Black History Month (February 2022) and Asian Heritage Month (May 2021) celebrated and honoured the legacy of these communities and highlighted issues that are relevant and current in our society

Sustainable development

• Earth Day (April 22, 2021), Environment Week (May 31 to June 6, 2021) and Waste Reduction Week (October 18 to 20, 2021) celebrated the planet’s environment and raised awareness about sustainable development. During these events, employees were encouraged to get involved in their communities, do park and shoreline cleanups and help their communities and organizations be more sustainable
• The CRA also partners with organizations to recycle and reuse materials. Those organizations include Staples to recycle writing instruments, Call2Recycle to recycle batteries, and Computers for Schools, which provides surplus office supplies and electronics to schools

The CRA continuously monitors its internal and external environments for events that could impact the achievement of its priorities and objectives. The CRA’s enterprise risk management program is agile and well-established, playing a key role in ensuring that corporate risks are identified, their likelihood and impacts are assessed, and strategies for mitigating risks that are above tolerance thresholds are adopted and monitored, notably by producing the CRA’s Corporate Risk Profile. Additionally, the CRA continually innovates and adapts its risk management processes to meet the changing needs of the CRA in an environment of increasing uncertainty. 

The table below highlights the key risks that influenced the CRA’s ability to meet its objectives. By identifying and managing risks properly, the CRA continues to be well positioned to deliver on its mandate and to maintain the trust and confidence of its clients.

The CRA integrates the Taxpayer Bill of Rights^lvi (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. The TBR defines 16 rights that build on the CRA’s values of integrity, professionalism, respect, and collaboration. These rights describe the treatment taxpayers are entitled to when dealing with the CRA. The TBR also sets out the commitment to small businesses to make sure the CRA conducts interactions as efficiently and effectively as possible.

Taxpayers have eight service rights (marked with an asterisk below) outlined in the TBR that govern taxpayers’ relationship with the CRA: 

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’s 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

Objective 1: Ensure clients feel understood, respected and valued

Results met:

Under this objective, the CRA achieved results in the following areas in 2021–2022:

• Ensuring CRA interactions are conducted with empathy and respect
• Tailoring compliance approaches, prioritizing an education-first approach to prevent errors and assisting those who are unintentionally non-compliant to become compliant
• Resolving service experience challenges in consultation with clients
• Improving our ability to collect client and employee feedback, data, and trends analysis and use it to inform service design and decision-making

In its 2021–2022 Departmental Plan^lvii, the CRA committed to delivering seven initiatives under this objective during the reporting year. All planned results were completed for five out of the seven initiatives. A selection of results related to completed initiatives is highlighted below. Explanations for commitments that were not met follow. 

In 2021–2022, the CRA achieved the following selection of results related to increasing empathy to better serve Canadians: 

• supported auditors through updated and new job aids to emphasize the importance of using empathy towards taxpayers to better understand the link between service and compliance 
• reinforced service priorities and concepts with employees through the multi-faceted Empathy Awareness Campaign, which consisted of presentations, workshops, a service excellence video, and other training and learning tools 
• completed the Empathy Campaign and Service Culture Employee Survey, which highlighted that CRA employees understand fundamental service behaviours, embrace them, and have a desire to apply them. In the survey, 98% of CRA employees agreed that they understood the importance of using empathy at work with colleagues and clients. Please see the highlight box for other key results of the 2021 Service Culture Employee Survey 

Despite the reprioritization of activities due to COVID-19, the CRA: 

• helped participating businesses understand and meet their tax obligations by launching educational reviews of the CRA’s payroll accounts (trust accounts) initiative and completing over 170 educational reviews. These reviews gave selected employers information and resources to help them understand and meet their filing, remitting, and reporting obligations. The CRA did this by reviewing their payroll books and records, identifying and explaining any discrepancies, providing information on available payroll resources, and answering any questions about their responsibilities. These reviews helped businesses self-correct any errors or omissions before the CRA enforcement activities occurred

Results not met:

In 2021–2022, the CRA fell short on two commitments related to tailoring compliance approaches and prioritizing an education-first approach to prevent errors and assist those who are unintentionally non-compliant to become compliant. In 2021–2022:   

• educational employer compliance audits were not implemented during the reporting year because auditors were involved with the Canada Emergency Wage subsidies post payment audits. The CRA is reprioritizing these audits for future years 
• the CRA had planned to proactively provide clients with supplementary and technical information as well as expert assistance on tax deductions, credits, or complex information requests. Due to the COVID-19 pandemic, some core compliance activities were suspended early in the fiscal year and resources were redirected. This initiative resumed in 2022–2023

In 2021–2022, the CRA consulted with clients, specifically with persons with disabilities, to use their feedback to identify and better understand service challenges faced when accessing CRA services. Through the consultations, the CRA: 

• gained insights to create its first Accessibility Plan, which will set out the CRA’s approach to addressing accessibility barriers over the next three years. The CRA interviewed members from 32 community organizations from across Canada who work with persons with disabilities to identify the types of accessibility barriers that these clients are encountering when accessing CRA programs and services, and what the CRA could do to create more accessible service experiences. The CRA’s Accessibility Plan will be published in December 2022 

To identify opportunities for service improvements by using service feedback data and expanding existing channels to offer more options for clients to submit service feedback, the CRA: 

• offered more options for Canadians to submit service feedback by creating an online service feedback form^lviii (Form RC193) to make it easier for Canadians to submit service feedback. Thanks to this form, clients no longer need to sign into a portal to submit feedback electronically. Canadians can also continue to submit service-related feedback via mail, by fax or through one of the CRA’s portals (My Account^lix, My Business Account^lx and Represent a Client^lxi)

Objective 2: Provide convenient access to services and support, while making information easier to find and understand

Results met:

Under this objective, the CRA achieved results in the following areas in 2021–2022:

• Increasing client support by proactively contacting clients who are eligible for, but are not receiving, tax benefits, and work to further automate tax filing for simple returns to ensure clients receive benefits for which they are eligible
• Enhancing client access to services and support through innovative solutions, better online navigation, and call centre improvements
• Simplifying and harmonizing tax and benefit information and content across programs and communication channels

In its 2021–2022 Departmental Plan^lxii, the CRA committed to delivering eleven initiatives under this objective during the reporting year. All planned results were completed for nine out of the eleven commitments. A selection of results related to completed commitments is highlighted below. Explanations for commitments that were not met follow. 

The CRA achieved the following selection of results under this objective: 

• increased tax years from four to five that an income tax and benefit return can be filed electronically using NETFILE and EFILE 
• added an additional year of information and slips to the Auto-fill my return^lxiii service to increase the number of years from five to six into certified tax software. The CRA also introduced electronic filing of select T3 trust returns using EFILE 
• introduced an automated callback service to give callers, under a certain set of conditions, an alternative to waiting on hold to speak with an agent. The number of calls to the automated call-back service included:
  • 485,500 on the Business Enquiries line 
  • 699,980 on the Individual Tax Enquiries line 
  • 199,796 on the Benefits Enquiries line 
• improved the CRA’s web content through prioritizing the optimization of the pages based on a new Page Analytics Tool. This internal tool provides data on web traffic trends, including where visitors came from, what they did on a page, and which search terms led visitors to a page
• lifted the restriction of filing of individual income tax and benefits returns electronically for clients with a non-Canadian address for EFILE  
• decreased follow-up by clients through providing CRA telephone agents the necessary skills to resolve first calls more often. This was done by redefining the First Contact Resolution Project to focus on COVID-19 benefit applications. Implementation of the project included training for all front-line telephone agents on subjects the CRA had identified as resulting in frequent calls from clients 
• launched the “Learn about your taxes^lxiv” online learning tool in November 2021 to help educate Canadians (with a focus on students/youth) about what they need to know before doing their taxes, how to do their taxes on their own, the different ways to file taxes, and the importance of filing taxes. This also included the development of educational videos and infographics as well as lesson plans for teachers

Results not met:

The CRA did not meet two commitments under this objective. 

• The CRA had committed to making measurable improvements to user’s task success rate by employing user experience testing with the public to make it easier for Canadians to find online answers to questions about small businesses, life events, and tax preparation. However, the optimization projects timelines were delayed for the small business and end of life webpages, and were moved to the following reporting year due to the reallocation of resources to support the delivery and ongoing support of COVID-19 benefits and subsidies 
• The CRA committed to making the process of completing advance pricing arrangements more timely and responsive to taxpayers’ needs, while ensuring appropriate transfer prices are being used by multinational enterprises. The CRA collaborates with members of the Organisation for Economic Co-operation and Development^lxvi to develop guidelines and best practices with respect to transfer pricing of cross-border transactions. In 2021–2022, the CRA and its international partners worked towards updating the bilateral advance pricing arrangements best practices document. However, the publication of the updated bilateral advance pricing arrangements best practices has been delayed until 2022–2023

Objective 3: Improve service to clients by accelerating the use of digital tools and processes

Results met:

Under this objective, the CRA achieved results in the following objectives in 2021–2022:

• Providing clients with more convenient digital tools to find information about their situation, access benefits and meet their tax obligations
• Improving the exchange of information across CRA services to contribute to an enhanced client experience
• Adopting modern information technology approaches and tools that are suited to designing and building business solutions in the digital era

In 2021–2022, the CRA committed to delivering eight initiatives under this objective during the reporting year. All planned results were achieved for five out of the eight initiatives. A selection of results related to completed initiatives is highlighted below. Explanations for commitments that were not met follow. 

In 2021–2022, the CRA achieved the following selection of results in this area:

• simplified the verification of tax returns for CRA clients and their representatives by offering an accelerated, accessible, and convenient channel to communicate with the CRA. The new My Account^lxviii feature allows users to upload supporting documentation for pre-assessment review activities 
• developed artificial intelligence (AI) applications and provided training to increase AI literacy in program areas to improve taxpayers’ understanding of and compliance with their tax obligations 
• implemented a progress tracker for disability tax credit applications, relief from penalties and interest, and registering formal dispute objections 

Results not met:

Three of the eight commitments for 2021–2022 were not met. 

In 2021–2022, the CRA committed to:

• start online delivery of collections letters to clients through portals such as My Account and My Business Account. However, the CRA is awaiting the completion of a business architecture, in early 2023, before it can implement the online delivery of collections letters to clients through these portals
• reducing the client burden when sharing documents with the CRA during an audit by increasing the maximum file transfer size on its online portals. However, this commitment has been delayed due to ongoing challenges related to network traffic, browser limitation, and shared infrastructure
• delivering higher quality applications more quickly by researching, developing and deploying the CRA’s next-generation Application Development Platform to allow a leaner and more agile application development process. It will allow the CRA efficiently build better and more secure digital solutions that can be delivered incrementally to its clients. Building this platform is a continual process. This commitment was delayed due to being unable to leverage cloud-ready capability, however, this issue has been since been resolved and the deployment of this platform is now on track with no significant risks as a result of the delay

Objective 1: Sharpening the focus on emerging tax risks

Results met:

Under this objective, the CRA achieved results in the following areas in 2021–2022:

• Investing a greater share of our resources in detecting non-compliance in new and emerging sectors and addressing them sooner to provide early certainty to clients and help minimize impacts to objections and collections
• Working with its key international and domestic partners to better understand compliance risks and best practices, share data and business intelligence, and carry out joint operations

In its 2021–2022 Departmental Plan^lxix, the CRA committed to delivering four initiatives under this objective during the reporting year. All planned results were completed for three of the four initiatives. A selection of results related to completed initiatives is highlighted below. An explanation for the commitment that was not met follows. 

In 2021–2022, the CRA: 

• improved compliance in the platform economy^{Footnote 20}  by using an education-first approach to inform platform sellers of their tax obligations and encourage them to meet these obligations (see the highlight box). The CRA also analyzed the 2021–2022 audit results in this area and identified that while sellers in the platform economy have the same type of risks as those in the regular population (for example, unreported or under-reported income), their income is relatively lower. The results of this analysis allowed the CRA to determine that the most effective strategy to improve compliance in the platform economy audits is to use a mix of compliance interventions, including an education-first approach

• improved compliance by using third-party data in new and emerging sectors and enhanced business intelligence efforts in this area. For example, the CRA used the Unnamed Persons Requirements (UPR) Tool to identify persons who may not be complying with the tax rules. In 2021–2022, the UPR tool allowed the identification of approximately 1,500 platform sellers and approximately 25,000 participants in the crypto-asset market

The CRA continued to increase its engagement and information sharing with other law enforcement agencies and domestic and international partners. Over the 2021–2022 fiscal year, the CRA: 

• used a Competition Bureau tool^lxx that provided significant advancements on how to disclose cases for criminal prosecutions and for criminal matters 
• collaborated with various agencies and partners like the Competition Bureau, High Technology Crime Investigative Association, Canada Border Services Agency, and Financial Transactions and Reports Analysis Centre of Canada and shared best practices on various tax activities including digital forensics, eDiscovery and cryptocurrency, and tax evasion
• continued to deepen its work with the Organisation for Economic Co-operation and Development (see highlight box) 

Results not met:

While the CRA sought to improve tax administrations’ understanding of common international tax risks and identify areas of consistency and differences in how these are currently detected, additional time was required for ongoing discussion due to change in scope and to come to a common understanding of key risks and compliance approaches. These efforts are ongoing and are led by the OECD. 

Objective 2: Adjusting the compliance approach according to the degree of non-compliance

Results met:

Under this objective, the CRA achieved results in the following areas in 2021–2022:

• Using the Liaison Officer service to guide clients through their tax obligations, taking into account the impact of COVID-19 on their business
• Decreasing its reliance on audit and audit reassessments when addressing low-dollar reporting discrepancies for small and medium business
• Increasing the consideration of penalties for gross negligence and third-party involvement in cases of serious repeated non-compliance

In its 2021–2022 Departmental Plan^lxxi, the CRA committed to delivering three initiatives under this objective during the reporting year. All planned results were completed. A selection of results is highlighted below. 

In 2021–2022, the CRA: 

• reached out to almost 44,000 businesses, via its Liaison Officer service^lxxii, to help them better understand their tax obligations and increase their awareness of common filing and reporting errors. A follow-up survey of over 1,300 survey responses showed the results were overwhelmingly positive: 
  • 98% of businesses confirmed that the Liaison Officer helped them to better understand their tax obligations
  • 98% of businesses said that the Liaison Officer was able to answer all their questions
  • 96% of businesses stated that the tools and information the Liaison Officer provided would help them better manage their tax affairs in the future
• raised awareness through two campaigns in the Western region related to property dispositions. Approximately 2,000 awareness letters were sent to inform Canadians on how to apply and use the principal residence exemption and to give them a chance to connect with an auditor for more information or to file an amended tax return, if required
• informed approximately 200 individuals about the publishing of the new online Form T602 - Exporter of Processing Services Program; the form streamlines the processes of obtaining or renewing the import certificate and eliminates errors
• began developing a Third-Party Penalty strategy and framework that focuses on instances when the CRA applied gross negligence penalties. This resulted in increased penalties for gross negligence and third-party involvement in cases of serious repeated non-compliance

The CRA completed Phase 2 of the Data Security Initiative and improved its Information Technology (IT) and cyber security defenses. To help increase the protection of client data from unauthorized access, change or loss, the CRA: 

• completed the database activity monitoring component to automatically monitor privileged users’ acces to key taxpayer data repositories 
• introduced multi-factor authentication to provide an added layer of security for CRA accounts and information to reinforce secure access for the CRA and in response to cyber attacks that impacted the Government of Canada in 2020

During the reporting year, the CRA strengthened its Internal Fraud Control Program. The CRA: 

• detected fraudulent employee transactions, as well as trends, schemes, and questionable transactions, not necessarily made by an employee, thorough the implementation of new data models 
• strengthened detection models and improved the tracking and reporting of questionable transactions 
• raised employee awareness on internal fraud through a new national course 

The CRA also provided employees with more tools, guidance and training to support the confidentiality, privacy and protection of personal information while working remotely. During the reporting year, the CRA:

• conducted seven national security awareness campaigns, launched seven tools, and updated resources for working remotely. The CRA held a national Agency event called “Ask the Agency Security Officer” during Security Awareness Week

Objective 2: Effectively managing clients’ personal information and data

Results met:

Under this objective, the CRA achieved results in the following areas in 2021–2022:

• Promoting Privacy by Design in the development, operation and management of all programs and processes that involve personal information, consistent with the commitment in our Privacy Management Framework
• Proactively informing clients on how to protect themselves from scams and frauds

In its 2021–2022 Departmental Plan^lxxv, the CRA committed to delivering four initiatives under this objective during the reporting year. All planned results were completed. A selection of results is highlighted below.

To promote Privacy by Design and begin reporting on the privacy management program, the CRA: 

• incorporated privacy measures at the design stage and throughout the entire life cycle of products, services and business practices to avoid privacy breaches 
• developed a Privacy Communications Plan, which included updating the privacy notice on the CRA webpage^lxxvi and communicating the changes through social media over a period of seven months 
• tracked and monitored privacy key performance indicators to allow for a more effective approach when corrective actions are required to address concerns and avoid privacy breaches 

To proactively inform clients on how to protect themselves from scams and frauds, the CRA: 

• relaunched the “Be Scam Smart^lxxvii” campaign to assist Canadians in identifying legitimate communications and to recognize and report scams and fraud attempts. There were a total of 1.1 million unique visitors to the web page since its launch 

Objective 3: Increasing transparency and accountability

Results met:

Under this objective, all commitments were completed as planned.   

The CRA increased the quantity and utility of data and information released in accessible and reusable formats on Canada.ca. During the reporting year, the CRA released statistics on the Canada workers lockdown benefit^lxxviii (CWLB) along with the following three new publications: 

• Climate Action Incentive (CAI) Statistics^lxxix - provides Canadians with statistics on information that the CRA collected and processed for all claimants of the CAI 
• Excise Duty Statistics^lxxx - provides Canadians with statistics on information that the CRA collected and processed from excise duty remitters 
• Selected T1 Statistics^lxxxi - provides Canadians with data from the most recently assessed individual income tax and benefits returns

In 2021–2022, the CRA completed a pilot project of the Scientific Research and Experimental Development (SR&ED) Industry Community of Practice and worked with three industry associations that represented the clean technology and biomed industries to understand and address compliance barriers and claimant needs. The project: 

• strengthened the CRA’s understanding of the industry’s issues and areas of innovation, improved the SR&ED’s ability to design tailored approaches, and strengthened the CRA’s ability to remain in-step with industry innovation

In 2021–2022, the CRA improved access to information through innovative solutions. The CRA:

• streamlined business processes that resulted in significant increases in efficiencies in processing access and privacy act requests
• implemented a plan to close all dated access and privacy act requests received prior to March 31, 2019, by September 30, 2022
• reduced the average processing time for requests for personal information from 26 days to 11 
• closed 82% more requests from 6,342 requests completed in 2020–2021 to 11,532 requests completed in 2021–2022
• reduced the number of ATIP complaints by 56% from 587 in 2020–2021 to 256 in 2021–2022
• closed 142 of the 186 oldest access and privacy act files (received prior to March 31, 2019)

Objective 1: Enhancing operations and use of data

Results met:

For this objective, the CRA pursued commitments under the following two areas in 2021–2022:

• Better managing and expanding the use of internal and third-party data, as well as client and employee feedback and trends analysis to better inform service design and decision-making
• Promoting the use of technology to resolve business payment issues and managing related business tax debts

In its 2021–2022 Departmental Plan^lxxxii, the CRA committed to delivering five initiatives under this objective during the reporting year. All planned results were completed for three out of the five initiatives. A selection of results related to completed initiatives is highlighted below. Explanations for the commitments that were not met follow.

In 2021–2022, the CRA:  

• created advanced analytics models, algorithms, and methodologies that supported compliance programs, improved client services, helped protect the CRA’s security and privacy and enabled data-driven insights. This improved ability to perform advanced analytics was done by certifying new open-source business intelligence tools and continuing to test machine-learning tools (see examples in the highlight box below) 

• strengthened data privacy and improved the quality of its information by testing business intelligence tools that would allow the CRA to remove identifying information it uses in analysis, processing, model building and data imputation (a process of replacing missing values in the data) 

Results not met:

The CRA did not meet two of the five commitments under this objective. 

• The addition of three national banks to the Secure File Transfer Protocol (SFTP) was not completed. The SFTP allows banks to share more information with the CRA. Two financial institutions experienced connectivity issues that could not be resolved during the reporting year, and one financial institution required additional time to review its service agreement. 
• Budget 2021 announced funding over three years for the CRA to work with Employment and Social Development Canada and the Treasury Board of Canada Secretariat’s Office of the Chief Information Officer to develop options for the implementation of a future real-time ePayroll solution. 

The CRA, in collaboration with project partners, continues to investigate digital options when assisting small and large businesses with their payroll data and obligations. This project is currently in a discovery phase, and the CRA is conducting extensive consultations with key internal and external stakeholders. These consultations are focusing on investigating:

• how employers will interact with the project’s solution
• how the data will be stored, secured, and maintained
• how Government departments will use this data to improve services and benefits to Canadians 

The activities of this commitment will span the entire duration of the project until March 31, 2024. 

Objective 2: Driving the institutionalization of innovation and the adoption of an agile methodology

Results met:

Under this objective, the CRA pursued results in the following areas in 2021–2022: 

• Identifying and institutionalizing lessons learned, including those from our COVID-19 experience, in particular in strengthening agility so we can quickly adapt and respond to unforeseen circumstances
• Stimulating a culture of innovation across the CRA and increasing experimentation in the use of artificial intelligence (AI)

The CRA committed to delivering seven initiatives in these areas during the reporting year and fell short on one of them.

In support of this objective, the CRA: 

• improved its agility and flexibility in its data validation process and promoted data quality and protection of confidentiality
• resumed its operations in services and programs, monitored and resolved most backlogs due to COVID-19 and put action plans in place to resolve the few remaining backlogs 
• launched its Innovation Program (see highlight box below). Of the 48 ideas submitted, four projects were prototyped and two were featured at the CRA’s second annual Innovation Conference 
• aligned all AI projects with the CRA’s Directive on AI through the update of its Algorithmic Impact and Alignment Assessment. This tool provides reporting on all the CRA’s AI projects at either the exploration, development, or production phases. It will ensure that the CRA deploys AI projects ethically and responsibly

The CRA did not meet its commitment to enhance caller experience on its telephone enquiries lines and to improve the quality and accuracy of answers by using speech analytic technology to capture valuable insights from calls. Although it launched a proof of concept to meet this commitment, the CRA concluded that the solution would require significant manual intervention to produce the desired reporting capabilities. It will explore more options in the next reporting year. 

Objective 1: Supporting well-being, safety, diversity and inclusion in all it does

Results met:

Under this objective, the CRA achieved results in the following areas in 2021–2022:

• Continuing to advance diversity and inclusion in the workplace
• Fostering an environment that supports accessibility and well-being in an evolving workplace
• Working to eliminate discrimination and harassment in the workplace with a focus on prevention, response and support

In its 2021–2022 Departmental Plan^lxxxiii, the CRA committed to delivering seven initiatives under this objective during the reporting year. All planned results were completed for five of the seven initiatives. A selection of results related to completed initiatives is highlighted below. Explanations for commitments that were not met follow. 

In 2021–2022, the CRA continued to implement action items from its Employment Equity, Diversity and Inclusion Action Plan and: 

• launched external consultations with persons with disabilities to understand barriers they face when interacting with the CRA
• implemented specialized training on unconscious bias 
• included at least two representatives from designated employment equity groups as part of staffing boards for middle management and executive processes
• created more opportunities for mentoring and coaching for employees from equity-deserving groups
• published a number of resources on diversity and inclusion for employees (see highlight box)

To address systemic issues of racism, increase understanding and awareness of diversity, and influence change, the CRA put in place several awareness and education activities throughout 2021–2022: 

• the CRA developed and delivered workshops on unconscious bias, which examines the alignment between our values, intentions, and behaviors. The unconscious bias workshops were delivered to:
  • over 5,000 employees
  • the CRA’s Leadership Development Program and the Leadership Learning Initiative
  • all executive staffing boards before their participation in selection process interviews 
• the Executive Group Network delivered presentations on diversity, inclusion, and systemic racism to 480 participants at the CRA’s 2021 Executive Forum 
• the CRA held ongoing events promoting awareness about diversity and inclusion, including a service-culture event to build awareness about accessibility and persons with disabilities 
• the Visible Minority Network held 17 events to promote awareness of visible minorities, and their respective cultures, including Asian Heritage Month, Transcending Diversity through Inclusion and Belonging and Islamic Heritage Month with a total of over 3,100 participants 

To support increasing the representation of visible minorities and Indigenous people’s representation in leadership roles, the CRA implemented:

• a national executive staffing process at the EX-01 level that focused on hiring visible minorities and Indigenous peoples; the CRA placed 30 candidates in a pre-qualified pool and made 12 permanent appointments
• the SponsorMe mentorship program. This program matches executive-level sponsors with protégés who have self-identified as members of equity-deserving. The program’s goal is to ensure these protégés have equal consideration for high priority projects, developmental opportunities and career advancement, while helping remove barriers. Sixteen candidates joined the program. Results from a feedback survey showed a high-level of satisfaction with the program
• a new character leadership pilot program called INSPIRE for 18 aspiring directors who self-identified as members of visible minority and Indigenous peoples equity groups 

To foster an environment that supports accessibility and well-being, the CRA: 

• examined the current state of diversity, inclusion and anti-racism at the CRA and identified areas where it needs to change. In its internal report “CRA accessibility surveys 2019 – Internal consultation – What We Heard”, it shows the need for the CRA to tackle systemic practices and policies affecting all equity-deserving employees
• promoted well-being support services, tools, resources, and training available to all levels of employees at the CRA, as referenced in the 2020–23 Well-being Strategy

To meet the new legislated requirements resulting from changes to the Canada Labour Code (Bill C-65), the CRA: 

• created a new Occupational Health and Safety Harassment and Violence Resolution and Prevention team 
• developed and launched the Workplace harassment and violence prevention training module as a CRA-specific add on to the Canada School of Public Service module
• launched and provided the mandatory training to all employees and management
• replaced its Directive on a Discrimination and Harassment Free Workplace with the new Directive on a Discrimination Free Workplace
• developed and implemented new Workplace Harassment and Violence Prevention and Resolution Procedures
• updated the CRA Guide for the investigation of alleged misconduct for discrimination, harassment and violence

Results not met:

The CRA did not meet two commitments under this objective:

• developing a comprehensive strategy for recruiting, including and retaining persons with disabilities, in consultation with persons with disabilities and the CRA accessibility working group. The CRA expanded input to include additional stakeholders such as the Persons with Disabilities Network. The CRA delayed developing the strategy due to the additional consultations, which will ensure a more robust strategy 
• increasing diversity at the executive (EX) level by reducing gaps for visible minorities and Indigenous peoples
  • The CRA partially met the commitment as there was an increased diversity at the executive level for Visible Minorities, however, progress was delayed for Indigenous Peoples
  • Significant efforts were made to increase diversity at the executive level, however, given the small population of approximately 450, as well as attrition due to departures and retirements, this had a significant impact on the internal representation 
  • Continuous efforts are made with other initiatives being implemented in 2022–2023, for example, a new staffing board member one-pager was developed and shared with board members prior to EX interviews. The One-pager outlines their roles and responsibilities as it pertains to Employment Equity, Diversity and Inclusion, including workforce analysis results for the EX group

Objective 2: Supporting the productivity of a workforce that is adapting to a new physical and virtual workspace

Result met:

Under this objective, the CRA achieved results in the following areas in 2021–2022:

• Address workforce transformation needs by developing our existing workforce and acquiring talent with the skills, knowledge and background to provide a positive client experience 
• Equip employees with the right tools and increase digital literacy to create a more productive and efficient workforce 
• Set the direction for the workplace of the future by ensuring that work environments are flexible, digital, and connected

In its 2021–2022 Departmental Plan^lxxxiv, the CRA committed to delivering five initiatives under this objective during the reporting year. All planned results were completed. A selection of results is highlighted below.

In 2021–2022, the CRA: 

• implemented the mandatory use of character leadership interviews for all executive levels (EX-01 to EX-05). This type of interview provides a more in-depth view of the candidate’s disposition to lead in addition to competencies. The CRA is also piloting the use of this evaluation approach for non-EX levels 
• implemented the National Mobility Bank, which resulted in 400 appointments. The bank facilitates employee mobility across programs, branches, and regions and provides managers with an additional staffing option, with quick access to interested candidates 
• advanced its Staffing Redesign Project and developed agile staffing solutions to help the CRA achieve its business goals. As part of the six major experiments conducted pertaining to this project, the CRA:
  • implemented the Service Delivery Model (see highlight box) to form centralized human resources teams to provide more effective and efficient staffing support to over 900 hiring managers and 6,000 employees. In 2021–2022, this model launched 21 staffing processes and created 21 pools 

• implemented a flexible, digital hybrid model that enhances delivery of the CRA’s mandate and developed the CRA’s first multi-year transition plan. The plan uses an event-driven approach that can adapt to the ever-changing environment. It is divided in various phases and designed to progressively increase in-office presence until the CRA’s vision for future hybrid model is achieved 
• created a national dashboard to track and report on the plan’s progress on activities such as the workforce and worksite readiness for in-office presence including information technology upgrades 
• created and issuance of the National Guidance for in-office presence in a phased-in approach
• prepared and delivered information sessions for employees, management and, executives on topics related to implementing the transition plan 

The Board provided oversight in all areas of its statutory responsibilities and accomplished its objectives as outlined in the CRA’s Corporate Business Plan (CBP) 2021–2022 with perspectives to 2023–2024.

Strategic Direction

The CRA’s Board of Management (the Board) plays an important role by overseeing the organization and administration of the CRA and the management of its resources, services, property, personnel and contracts, and the development of the CBP. It also supports the CRA in realizing its vision to be “trusted, fair, and helpful by putting people first.” 

The Board consists of 15 members who have a broad range of experience and expertise in fields such as human resources, audit, information technologies, corporate governance, and more. Board members are committed to continuous learning; throughout the year, they attended various director development events to gain a better understanding of the public sector and to stay well-informed of current and future events and trends, both domestically and internationally.

The Board has four committees to support it in fulfilling its oversight responsibilities: the Audit Committee, Governance and Social Responsibility and Service Committee, Human Resources Committee, and Resources Committee.  

In 2021–2022, the Board continued to support the CRA on its transformation journey, shaping the direction of all its strategic initiatives with the People First philosophy in mind, and in keeping with the five strategic priorities of:

• providing a seamless, empathetic and client-centric service experience
• enhancing the fairness of Canada’s tax and benefit administration
• strengthening trust through enhanced security, transparency and accountability
• fostering an innovative and data-driven organization
• promoting a thriving and inclusive workforce 

To track the CRA’s progress, the Board continued to receive regular updates on the CRA performance, particularly its contact centres’ performance, major project investments, cyber security, corporate risks, and the implementation of the strategic deliverables from the Corporate Business Plan. The Board also received regular updates on the CRA’s financial statements and resources management reports. 

As the COVID-19 pandemic situation was constantly evolving, the Board received regular updates on emerging issues and offered its expertise and guidance to assist the CRA in navigating through these challenging times. The Board continued to monitor and assess the status of business resumption and the clearing of operational backlogs. All of this oversight was conducted through the lens of empathy for both the CRA’s clients and its employees. 

The health and safety of employees remained one of the Board’s key priorities. The CRA’s employees did a tremendous job of delivering benefits to millions of Canadians who were relying on them. To support the employees, the Board monitored the situation closely to ensure that the CRA had the appropriate policies and procedures in place to protect the physical and mental well-being of its employees. Similar to previous years, the Board held its annual series of strategic development meetings to work with CRA executive management to define the CRA’s strategy for the future, taking into account the broader global environment and the Government of Canada’s priorities. 

In all of this work, the Board’s role as an oversight body was guided by robust and modern governance principles and practices. The Board has confidence in the CRA management and is proud of the CRA’s performance, particularly during these challenging times. The trust and the strong working relationship between the Board and CRA management will continue to be balanced with the Board’s responsibility to ask challenging questions and continue to add value to the CRA’s work.

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

Goals: What we said we would do

Over the next three years (2021–2024), the Board will remain focused on overseeing the CRA’s efforts towards providing an unparalleled service to its clients, which is based on a strong service culture and its People First philosophy. To ensure that all CRA interactions with its clients are conducted with empathy and respect, the Board will oversee the CRA’s efforts to provide its employees with the necessary knowledge and tools on dealing with clients empathetically.

Key Results: What we did

• Over the past years, the CRA has launched a number of initiatives to modernize its programs and services. Given the breadth and magnitude of planned changes at the CRA, the Board encouraged the implementation of a holistic and integrated approach to transformation rooted in the People First Philosophy. The Board worked with the CRA to identify the mandate and the scope of the Agency Transformation Office to ensure alignment between the CRA’s strategic priorities, transformation objectives, and resourcing. The Board was also actively involved in defining the long-term strategic direction for the CRA and its transformation roadmap. With an eye on improving service to Canadians, the Board also monitored and provided input to the CRA on the re-organizations in the Ontario and Western regions
• The outbreak of the COVID-19 pandemic resulted in disruption to the CRA’s business operations, creating backlogs in some of the CRA programs. The Board received the quarterly updates from the CRA and discussed the progress being made to address the backlogs. The Board provided guidance on the CRA action plans and resources assigned to manage the remaining backlogs. The Board will continue to provide feedback on the backlog situation until all COVID-19 backlogs are resolved. The Board reviewed the CRA National COVID-19 Business Continuity Plan – After Action Report and provided feedback on the recommendations identified in the report. The Board encouraged the CRA to seize the opportunities identified during the pandemic, such as digitalization of services, to continue to improve services to Canadians. It is proud of the CRA’s swift implementation to deliver benefits to Canadians during the pandemic and employees’ willingness and ability to embrace the culture of change and strengthen collaboration to continue through ongoing change 
• The Board met with the Taxpayers’ Ombudsperson to discuss the five service-related recommendations included in the Ombudsperson’s 2020–2021 Annual Report^lxxxv. The Board will continue to monitor the CRA’s response to those recommendations
• The Board continued to work with the CRA to ensure that Canadians feel understood, respected, and valued. In doing so, the Board strongly supported the CRA’s decision to implement an employee training program on empathy in service entitled “Understanding your client’s experience: An Empathy Mapping workshop” 
• Understanding the importance of public trust in the CRA, the Board was provided with a semi-annual analysis of the major communication channels through which the CRA connects with and gathers feedback from its clients. This offered its members a better understanding of client experience and of what CRA-related information is being used by Canadians. The analysis helped them and the CRA focus efforts to improve service and strengthen the CRA’s reputation
• In 2021–2022, the Board continued to engage with a variety of stakeholders, including the Chief Information Officer of Canada (CIOC) and the President of Shared Services Canada (SSC), to seek opportunities to strengthen collaboration and to discuss the delivery of digital services through digital modernization initiatives. The SSC presented the new Enterprise Service Model (ESM) that will support stable, predictable, and transparent provisioning of enterprise services which will ensure faster delivery and less administrative burden. The Board will continue to work with the SCC to ensure the CRA has a resilient infrastructure to meet its mandate now and in the future, including a hybrid workforce. The CIOC met with the Board and provided an overview of the Government’s priorities. The Board will continue to engage with the CIOC and is committed to monitoring the progress of the CRA’s participation in the government-wide “Sign in Canada” project

The Board is committed to the principles of social responsibility. In 2021–2022, the Board organized a director development session on social responsibility to discuss the evolution of the corporate social responsibility, its environmental, social and governance drivers, as well as the transformation to the social purpose governance. The Board also took steps to support the Minister and the CRA’s provincial and territorial partners in identifying and recommending Canadians from all equity-deserving groups to serve as members of the Board, and will continue to do so in the future.

Priority: Enhancing the fairness of Canada’s tax and benefit administration

Goals: What we said we would do

Over the next three years (2021–2024), the Board will support the CRA in its pursuit of willfully non-compliant companies and individuals. The Board will also support the CRA’s approach to supporting client compliance by providing correct information and outreach to them, so that they understand their tax obligations and access the benefits and credits for which they are eligible. The CRA, under the Board’s oversight, will enhance Canadians’ trust by working with partners, both within Canada and internationally, to detect and deter non-compliance.

Key Results: What we did

• The Board continued to oversee the CRA’s efforts to uphold fairness in Canada’s tax system through its monitoring of CRA services and compliance initiatives. In 2021–2022, the Board supported the CRA’s empathy-based People First approach to the collection activities and monitored the progress of the collection activities’ gradual resumption
• The Board kept appraised on the CRA’s work to address the risks and challenges posed by the underground economy and the CRA’s efforts to explore innovative techniques to improve tax compliance and reinforce the fairness and integrity of Canada’s tax system
• Through bi-annual updates on the CRA’s International Engagement and Partnerships, the Board continued to support the CRA in collaborating and coordinating actions with other tax administrations and international tax organizations
• The Board will continue to stay informed on international best practices and will monitor Canada’s performance in relation to other tax administrations

Priority: Strengthening trust through enhanced security, transparency and accountability

Goals: What we said we would do

The Board recognizes the importance of safeguarding taxpayer information and protecting the privacy of Canadians. The majority of taxpayers comply with the tax laws. Improving transparency, accountability, and custodianship of their personal information will further substantiate the trust that they place in the CRA. Over the next three years and beyond, the Board will vigilantly oversee the CRA’s efforts to further strengthen its networks and information security.

Key Results: What we did

In an environment of ever-increasing cyber threats, the Board continued to oversee the CRA’s security efforts to maximize the stability of the CRA’s cybersecurity posture. To do so, the Board approved the CRA Cyber Security Strategy to enable the CRA to manage risks. Furthermore, the Board received regular cybersecurity updates to be appraised of any cyber-related issues. While cyber threats will always be there, the CRA is prepared to deal with those events and other potential crises. Throughout the year, the Board continued to review lessons learned reports from events and incidents, provided feedback, and monitored the implementation of the action plans developed to address those recommendations. The Board:

• continued to provide guidance on the CRA’s crisis management readiness throughout the year. The Board will continue to work with the CRA to make sure it has a robust crisis management plan that accounts for various crisis scenarios
• continued to support accountability and paid close attention to CRA risk assessments through the quarterly updates on the CRA Corporate Risk Profile. The Board was kept apprised of the risks posing the greatest threat to the CRA’s ability to meet its strategic priorities, as well as the action plans developed to respond to the risks. Furthermore, the Board reviewed the quarterly risk environmental scan which summarizes key events, facts, and trends happening in Canada and around the world that could potentially affect the CRA’s ability to do its business
• continued to receive quarterly updates from the Office of the Auditor General (OAG) and monitor the CRA’s progress on implementing action plans to address the OAG’s recommendations
• As part of the annual update from the CRA Chief Privacy Officer, the Board was briefed on new developments related to privacy and access to information and kept updated on the CRA’s progress in addressing Access to Information and Privacy requests. The Board also incorporated privacy and trust key performance indicators in its quarterly Performance Dashboard and will monitor these indicators closely going forward
• continued to track the CRA’s progress in achieving the sustainable development goals outlined in the CRA’s three-year strategy. The Board focussed its attention on monitoring emerging issues and practices in the social responsibility realm as it relates to the public sector
• To fulfill its oversight role, reviewed, updated and approved a number of corporate policy instruments to ensure a sound corporate governance practice, and efficient and effective management of the CRA resources, services, property, personnel, and contracts
• From a continuous improvement perspective, maintained the strong lines of communication and collaboration between its members and the CRA’s management. Internally, the Board continued the semi-annual meetings of the Board Chair and Committee chairs to strengthen the effectiveness of its members and committees. Board members also attended director development sessions on “Chairing with Intention” and “For Aspiring Chairs” to further broaden their skills. The Board also undertook its annual review of the Board’s committee mandates and charters to ensure they are relevant and serve the purposes of good corporate governance

Priority: Fostering an innovative and data-driven organization

Goals: What we said we would do

The pandemic has taught us that innovation is the key to any organization’s success and viability. The Board is committed to overseeing and supporting the CRA’s drive towards exploring innovative methods to improve its processes and service to Canadians. The CRA is a data driven organization and the Board committed to ensuring that the CRA remains focussed on using its large repository of data to make sound business decisions.

Key Results: What we did

• The Board continued to support the CRA in its innovative efforts by encouraging it to build on the experience and knowledge gained during the pandemic. This means keeping pace with advancements in technology, improving the accessibility and availability of information to the CRA sign-in services, and meeting Canadians’ expectations for clear and easily accessible services. To demonstrate the Board’s commitment to innovation, the Board Chair presented at the CRA’s second annual Innovation Conference to promote innovation across the CRA and inspire employees.
• The Board also worked with the CRA to identify the mandate and the scope of the newly created Digital Transformation Program Branch. The Board emphasized the need for, and the importance of, a digital transformation to improve service to Canadians and to facilitate the work within the CRA. The Board will continue to monitor the Agency’s digital transformation efforts and ensure appropriate allocation of resources to make it a success. 
• The Board approved the CRA’s three-year IT strategy to guide CRA through the modernization process to maximize opportunities in improving service to Canadians and to support employees with the tools to deliver programs. The CRA IT Strategy is fundamental in achieving the CRA’s long term strategic objectives.
• Similar to previous years, the Board supported the CRA in investing in the renewal of its core application systems and the security of IT operations. In line with the Board and CRA priorities related to innovation, the Board reviewed the Emerging Technology Framework. The Framework will be used to oversee and track the CRA’s efforts in the emerging technologies domain by identifying new technologies, assessing technical readiness and tracking implementation.
• Understanding the potential of artificial intelligence (AI) in the optimization of programs and services delivery, the Board continued to express its support for ethical and unbiased use of AI. The Board reviewed the CRA’s AI roadmap which will guide the organization through the implementation of its Artificial Intelligence Enablement Plan.
• The Board has continued to monitor service performance data and results for the CRA contact centres. While some improvements have been made, more needs to be done to enable seamless, omni-channel service delivery. The Board will continue to track the progress of the technological evolution of telephony and digital services available for contact centres. The Board will work with the CRA to enhance implementation of innovative ideas and other improvements to the work of its call centres with the goal of providing better services to Canadians

Priority: Promoting a thriving and inclusive workforce

Goals: What we said we would do

The CRA’s most important asset is its employees. Over the next three years (2021–2024), the Board will focus on overseeing the CRA’s efforts towards ensuring the mental and physical well-being of its employees, including supporting them in their new remote workspace, so that they are productive and able to serve and meet clients’ expectations. 

The global anti-racism events of 2020 brought about a renewed focus on the importance of diversity and inclusion. The Board will oversee the CRA’s implementation of diversity and inclusion recommendations in response to what was heard from employees’ experiences of inclusion, racism, and discrimination in the workplace. The Board is committed to the CRA being a harassment-free, diverse, and inclusive workplace.

Key Results: What we did

• For the fifth year in a row, the CRA was identified as an employer of choice and one of the top 100 employers in Canada. It was recognized for its innovative efforts to provide support for employees throughout the pandemic. The Board continued to support the CRA in providing a safe, healthy, and inclusive workplace that demonstrates the CRA values of integrity, professionalism, respect and collaboration.
• Recognizing the importance of the CRA’s people, and the public service as a whole, the Board Chair addressed the CRA’s employees at the CRA’s National Public Service Week to recognize and thank employees for their hard work and dedication. 
• The CRA’s Chief Human Resources Officer kept the Board apprised on matters related to employees’ health and safety in the pandemic environment, the CRA’s plans regarding a physical return to work, and on emerging human resources issues. The Board provided guidance on all of the engagements and will continue to do so moving forward to ensure CRA employees’ health and safety. 

To fulfil its oversight responsibilities, the Board continued to oversee the management of programs and policies related to people management. It approved the CRA Workforce Plan 2022–2023 to support the organization’s current and future workforce needs and allow the CRA to meet its business objectives. The Board also received the CRA workforce demographics updates that will inform the development of the next workforce plan. 

• The Board provided strategic advice and guidance to CRA management that aided in the development of the Policy Framework for People Management. The Framework establishes the CRA approach which aligns the CRA’s people management practices with the CRA’s People First philosophy and the service culture. The Framework ensures employees and managers are equipped with the tools they need to be productive, innovative, flexible, and resilient, and have a fair, physically and psychologically safe, respectful, and supportive environment.
• To assist the CRA in navigating the new realities of a virtual or hybrid workplace, the Board provided advice and guidance on the initiatives to support the productivity of a workforce that is facing change. The Board received regular updates on the results of the COVID-19 Employee Survey to get the pulse of CRA employees’ well-being, work arrangements preferences, perceptions and concerns regarding the hybrid work model. These results were one factor in the development of the CRA transition plan towards a hybrid model of working. The Board was updated on a quarterly basis on the progress of the development and the ensuing implementation of the transition plan. 
• The Board was provided with an update on the CRA Multi-Year Action Plan 2020–2025 for Equity, Diversity, and Inclusion. The purpose of the plan is to have a national approach to meeting the CRA’s legislative requirements under the Employment Equity Act and to addressing under-representation of the four designated groups.
• To foster a culture of continuous learning within the CRA, the Board approved the Directive on Learning. The Directive encourages and supports employees in their learning by ensuring that the governance and infrastructure for learning are in place. The Board also monitored the implementation of the character leadership approach and was kept informed on the Gender-Based Analysis Plus (GBA Plus). This included updates on raising awareness, increasing the application of GBA Plus, building capacity, and the work on modernizing the sex and general policies and practices at the CRA.

In 2021–2022, the Board, in partnership with the CRA, accomplished its overall strategic objectives and remains committed to: 

• working with CRA management to advance the CRA’s service transformation agenda 
• fulfilling its oversight responsibilities in its fiduciary role
• providing strategic advice and guidance to the CRA
• exploring innovative methods to streamline the Board its governance and make its oversight role more effective and efficient

The Board thanks the CRA Commissioner, Bob Hamilton, for his leadership of the organization, and is also grateful to the CRA management and employees for their support in enabling the Board to carry out its fiduciary obligations. The Board will continue to support the CRA in achieving its strategic goals and transformation efforts to better serve Canadians as a world-class tax and benefit administration.

For information on the Board of Management attendance record for 2021–2022, please see the supplementary information tables.

Spending

Spending 2019–2020 to 2024–2025

The following graph presents planned (voted and statutory spending) over time.^{Footnote 21}

CRA spending trend (dollars)

Budgetary Performance Summary for Core Responsibilities and Internal Services (Dollars)

The “Budgetary performance summary for core responsibilities and internal services” table presents the budgetary financial resources allocated for the CRA’s core responsibilities and for internal services. 

A significant portion of the fluctuations 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 spending under the CRA’s voted appropriations for fiscal years 2019–2020 to 2021–2022 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 these items, actual spending in 2021–2022 has increased 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 2022–2023 to $3.944 billion in 2024–2025 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.

The CRA’s 2021–2022 total authorities available for use decreased by $554 million, or 5.1% over its planned spending. Of this amount, a reduction of $2.1 billion is related to the statutory CAI payment and is due to a change in the timing of payment processing. Excluding the impact of these transfer payments, the overall increase is $1.5 billion, which is attributable to the aforementioned technical in-year adjustments, COVID-19 related measures, and funding for measures announced in the 2021 Federal Budget (for more details, please see “Authorities approved after Main Estimates” in the supplementary information tables). Of the 2021–2022 total authorities, $723 million remained unexpended at year-end, of which $714 million is eligible to be carried forward by the CRA to 2022–2023 under its statutory two-year spending authority. As in 2020–2021, a portion of the unexpended amount is the result of CRA resources being temporarily redirected from core tax and benefits workload to continue the delivery of critical COVID-19 programs. As the external environment begins to stabilize, funds will be carried forward and directed to emerging operational pressures as well as major investment projects in 2022–2023.

2021–2022 Budgetary Actual Gross Spending Summary (Dollars)

The following table reconciles gross planned spending with net spending for 2021–2022.

Actual revenues netted against expenditures represent amounts 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.

The “Human resources summary for core responsibilities and internal services” table presents the full-time equivalents (FTEs) allocated to each of the CRA’s core responsibilities and to internal services.

The increase in actual FTEs in 2021–2022 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 2022–2023 to 45,112 in 2023–2024, is primarily as a result of a decrease or sunsetting of funding to implement and administer various measures associated with the COVID-19 pandemic.

For information on CRA’s organizational voted and statutory expenditures, consult the Public Accounts of Canada 2021^lxxxvi.

Information on the alignment of CRA’s spending with Government of Canada’s spending and activities is available in GC InfoBase^lxxxvii.

Financial, human resources and performance information for the CRA’s Program Inventory is available in GC InfoBase^lxxxviii.

Agency activities

Financial statements

CRA’s financial statements (unaudited) for the year ended March 31, 2022, are available on the CRA webpage ^lxxxix.

Financial statements highlights

The 2021–2022 planned results information is provided in the Canada Revenue Agency’s Future-Oriented Statement of Operations and notes 2021–2022^xc.

The CRA’s net cost of operations before government funding and transfers in the fiscal year 2021 to 2022 amounted to $5,364.5 million, an increase of $305.1 million from the $5,059.4 million net cost of operations before government funding and transfers in the fiscal year 2020 to 2021.

Personnel expenses (salaries and other allowances and benefits) represent 78% of total expenses and are the CRA’s primary costs. They have increased by $472.6 million in the fiscal year 2021 to 2022, mainly due to an increase in the number of employees, economic salary increases and salary increments. The growth of approximately 6,600 full-time equivalents was critical to ensure the delivery of new and extended COVID-19 benefits and subsidy programs as well as Budget 2021 initiatives.

The remaining 22% of expenses are comprised of other costs such as information technology (IT) and accommodation expenses. Total non-personnel expenses have increased by $37.4 million in the fiscal year 2021 to 2022. This variance mainly stems from IT equipment and services ($68.0 million), including services from Shared Services Canada, which increased for expanded mainframe processing capacity for income tax filings and the implementation and ongoing support of real-time T1 notices of assessment. Additionally, there was an increase in accommodation expenses ($18.6 million) due to major tenant services projects and fit-up costs related to the Workplace of the future. The overall increase was offset by an adjustment recorded in fiscal year 2021 to 2022 following the conclusion of an agreement with a provincial partner.

Non-tax revenues have increased by $204.9 million in the fiscal year 2021 to 2022, mostly attributable to the increase in costs recovered for the administration of COVID-19 benefit programs ($226.8 million).

Liabilities have remained rather stable in the fiscal year 2021 to 2022 with an overall decrease of $8.4 million. This variance is mainly explained by an increase in salary accruals ($31.9 million) resulting from an increase in the number of employees, economic salary increases and salary increments, which is partially offset by a decrease in accounts payable to other government departments and agencies ($23.1 million) mainly due to the decrease in the amount payable to the Treasury Board Secretariat for the final adjustment to CRA’s employee benefit plan expense.

The increase of $35.9 million in financial assets is mainly explained by an account receivable recorded in the fiscal year 2021 to 2022 following the conclusion of an agreement with a provincial partner. 

Non-financial assets are primarily comprised of tangible capital assets (97%). The net book value of tangible capital assets has increased by $11.7 million in fiscal year 2021 to 2022. Costs capitalized ($81.5 million) are mostly comprised of in-house software development ($78.8 million) for major projects, including T3 modernization ($27.9 million), Canada emergency benefits in response to COVID-19 ($15.2 million), Canada Pension Plan and Employment Insurance Act rulings and agreements ($4.8 million) and Appeals modernization ($4.5 million).

Administered activities

Condensed statement of administered revenues and pension contributions, statement of administered expenses and recoveries (unaudited), and statement of administered cash flows for the year ended March 31, 2022 (in millions of dollars)

The CRA administers revenues for the Government of Canada, provincial and territorial governments and First Nations as well as pension contributions and other revenues for the Canada Pension Plan. For the fiscal year 2021 to 2022, total administered revenues amounted to $586,374 million. This represented an increase of $103,965 million or 21.6% from 2020 to 2021. This increase reflects better labour market conditions, strong growth in corporate earnings and higher retail sales, in line with the economic recovery. The growth in income was partially offset by the gradual elimination of taxable benefits paid under the Canada’s COVID-19 Economic Response Plan (the Plan). A one-time $5,400 million goods and services tax credit payment in April 2020 led to a decrease in 2020 to 2021 revenues. 

The CRA administers expenses for the Government of Canada, provincial and territorial governments as well as the doubtful accounts expense for the Canada Pension Plan. The CRA also administers recoveries for the Government of Canada relating to Old Age Security, employment insurance, and Canada recovery benefit. Total net administered expenses and recoveries amounted to $90,215 million in 2021 to 2022, a decrease of $104,867 million or 53.8% from 2020 to 2021. This decrease is attributable to the end of several benefit payments made under the Plan. This decrease was partially offset by targeted measures introduced in 2021 to 2022. Recoveries of Old Age Security, employment insurance, and Canada Recovery benefits led to a $1,300 million increase in recoveries.

Total administered assets amounted to $179,602 million as at March 31, 2022, an increase of $28,999 million or 19.3% from 2020 to 2021. The increase results from higher accruals and growth in arrears related to revenue growth. Amounts receivable from benefit recipients have increased due to redeterminations and are presented separately in 2021 to 2022. They reflect overpayments based on available information as at March 31, 2022. 

Administered liabilities amounted to $79,594 million as at March 31, 2022, an increase of $7,183 million or 9.9% from 2020 to 2021.

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

Ministerial profile: National Revenue

Institutional head: Bob Hamilton

Enabling instrument: Canada Revenue Agency Act ^xci

Chair, Board of Management: Suzanne Gouin

Year of commencement: 1999

Information on the CRA’s raison d’être, mandate and role is available on the CRA website^xcii. 

For more information on the CRA’s organizational mandate letter commitments, see the Minister’s mandate letter^xciii and supplementary mandate letter^xciv. 

Information on the CRA’s operating context is available on the CRA website^xcv. 

The CRA’s Departmental Results Framework and Program Inventory of record for 2021–2022 are shown below.

Financial, human resources and performance information for CRA’s Program Inventory is available in GC InfoBase^xcvi. 

The following supplementary information tables are available on the Canada.ca website^xcvii: 

• Reporting on Green Procurement
• Authorities approved after Main Estimates (dollars)
• Details on transfer payment programs
• Gender-based Analysis Plus (GBA Plus)
• Response to parliamentary committees and external audits
• Board of Management attendance record for 2021–2022 and compensation rates

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the Report on Federal Tax Expenditures^xcviii. This report also provides detailed background information on tax expenditures, including descriptions, objectives, historical information and references to related federal spending programs as well as evaluations and GBA Plus of tax expenditures.

The Canada Revenue Agency Act requires the CRA to include in its annual reporting a copy of any report produced under subsection 56(1) or a summary statement of any assessment produced under section 59. The report and assessment are produced on an as needed basis. During 2021–2022, the Public Service Commission did not prepare, or have prepared on its behalf, a report to the CRA pursuant to subsection 56(1) of the Canada Revenue Agency Act on the consistency of the CRA’s staffing program with the principles set out in the Summary of its Corporate Business Plan. For the same period, the CRA did not prepare pursuant to section 59 of the Canada Revenue Agency Act an assessment of the recourse the CRA provides or administers in its management of human resources.

Connaught building

555 MacKenzie Avenue

Ottawa ON K1A 0L5

Telephone: 613-957-3688

Web page: Canada Revenue Agency^xcix