2020–21 Departmental Plan

From: Canada Revenue Agency

On this page

• Message from the Minister
• Message from the Commissioner
• CRA at a glance
• Raison d'être, mandate and role
• Our operating context
• Priorities
• Providing a seamless service experience
• Maintaining fairness in Canada's tax and benefits administration
• Strengthening trust, transparency and accountability
• Enabling innovation
• Empowering our people to excel
• Spending and human resources
• Supplementary information

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ISSN: 2371-7629
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Canada Revenue Agency

Mission

To administer tax, benefits, and related programs and ensure compliance on behalf of governments across Canada, thereby contributing to the ongoing economic and social well-being of Canadians.

Vision

Trusted, fair and helpful by putting people first.

Values

Integrity: We establish and preserve trust with all stakeholders by applying the law fairly and upholding our standards.

Professionalism: We are knowledgeable, accurate, conscientious, innovative, and service-oriented.

Respect: We interact with people in a way that makes them feel heard and valued. We listen and respond judiciously.

Collaboration: We recognize and act on opportunities to work together to deliver the Agency's mandate. We consult and share ideas, fostering innovation and improving the service experience, both internally and externally.

CRA at a glance

* Canada child benefits payment information was transferred to Public Services and Procurement Canada; direct deposits were made, and cheques distributed on time based on the benefit payment schedule.
** 2019 tax-filing season
*** Returns completed by May 15, 2019

Raison d'être, mandate and role

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

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

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

Core responsibility: tax

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

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

The following indicators are used by the CRA to assess its overall progress toward the achievement of its expected result for its tax core responsibility. For more information on the methodologies used to calculate these indicators, go to GC InfoBase.

Expected result: Canadians voluntarily comply with their tax obligations, non-compliance is addressed, and Canadians have trust in the CRA.

Core responsibility: benefits

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.

The CRA administers the Canada child benefit, the goods and services tax/harmonized sales tax credit, children's special allowances, the disability tax credit, the Canada workers benefit and provincial/territorial programs. The CRA uses its federal tax delivery infrastructure to administer 181 services and ongoing benefits and one-time payment programs on behalf of the provinces and territories. These income-tested benefits and other services contribute directly to the economic and social well‑being of Canadians by supporting families and children.

The following indicators are used by the CRA to assess its overall progress toward the achievement of its expected result for its benefits core responsibility. For more information on the methodologies used to calculate these indicators, go to GC InfoBase.

Expected result: Canadians receive their rightful benefits in a timely manner.

Internal services

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.

Gender-based Analysis Plus

The CRA, through this plan, supports the Government of Canada's priority to achieve gender equality and inclusive government. The CRA applies the Gender-based Analysis Plus (GBA+) lens by examining policies, programs, initiatives or services at the appropriate development stage for its impacts on diverse groups of women, men and gender diverse people. The "plus" in GBA+ acknowledges that GBA goes beyond biological (sex) and socio‑cultural (gender) differences; GBA+ considers many identity factors, like race, ethnicity, religion, age, and mental or physical disability. The CRA will continue to actively monitor its programs and services throughout their lifecycle to ensure they respond to the diverse needs of Canadians. The CRA reports annually on progress in its Departmental Results Report.

Designing and delivering people-centred services

The CRA promotes tax compliance and administers benefits through outreach activities, offering general and targeted client assistance, and by educating clients about their obligations and entitlements. Communicating with complete, accurate, clear and timely information helps our clients feel valued, gives them greater confidence in managing their financial affairs, and makes them more likely to comply with Canada's tax laws. The CRA is dedicated to delivering services in ways that meet the needs of its clients.

Protecting the revenue base

Protecting the integrity of Canada's self-assessment system is one of the CRA's fundamental roles. To foster trust and fairness, clients need to feel everyone pays their required share, and the CRA needs to help them meet their obligation to do so. When clients make mistakes or do not have all the information they need to, for example, file an accurate return, the CRA applies the law responsibly, with an emphasis on education and assistance. It is important that clients know that those who choose not to pay the tax they owe will face enforcement action.

Leveraging technology

Technology continues to be a key enabler for service delivery, both internally and externally, making it easier and more convenient for individuals and businesses to interact with the CRA. Advanced data analytics gives the CRA greater insight into client behaviour so that serious non‑compliance and deliberate attempts to evade Canada's tax laws can be more precisely and rapidly targeted. Emerging technologies—such as artificial intelligence and robotic process automation—offer significant potential to evolve the CRA's business model and address some of the expectations of its clients. They also carry risks that our organization must effectively manage.

Managing information and data

Information is the basis by which all CRA decisions are made. Underpinning these decisions are the data that we create, collect, send, receive and capture. The strategic management, use and governance of these data is critical to data-driven decision‑making and to helping the CRA tailor its services and activities to its clients.

The growth in the volume of structured and unstructured data in digital form presents ongoing challenges. The CRA must continue to ensure its authenticity, accuracy, integrity, and completeness. This also supports the CRA's contribution to the federal Open Government initiative, which provides easy and consistent access to aggregated CRA information and data in open, standardized, digital formats.

Protecting privacy

The CRA has an obligation to prevent and detect any unauthorized access or disclosure of information about its clients and employees, government property or valuables, and any taxpayer property that is in our possession or control. Clients want assurance that the CRA handles data with the utmost security and respect for privacy. This is a challenge with cyber threats that continue to increase in number and complexity; a cyber attack can temporarily disrupt the availability of the CRA's services and place at risk the security of personal information that clients have submitted to the CRA. The CRA takes its responsibilities very seriously, continuously enhancing its electronic and physical security controls, and managing a wide range of security risks in a fast‑changing environment while furthering our organization's service transformation agenda.

Building and maintaining an effective workforce

The CRA continues to build and maintain an effective workforce of agile thinkers, decision-makers and problem solvers. We are looking to hire the right people, and to equip all our employees with the modern tools and training that they need when they need it. This will ensure that we have the specialized skill sets to support client-centred service in both official languages, the optimal use of technology, and targeted data analysis.

A healthy workforce and workplace are critical to the accomplishment of organizational goals. For this reason, the CRA is committed to employee well‑being in an environment where staff is free from harassment and discrimination. The CRA also strives to achieve strength through social and cultural diversity within our workforce by actively recruiting with a view to reflect the society that it serves.

We approach our administrative responsibilities with the underlying premise that most people are honest and—given the opportunity and the right services—will comply with the law. All the services and activities the CRA carries out fall along a continuum that runs from facilitating and promoting continued compliance to enforcing compliance through a series of checks and balances, verifications and audits, and criminal investigations. We do this to ensure that the law has been respected, so that Canadians continue to benefit from the programs that contribute to their economic and social well‑being. Clients who do not agree with our decisions can seek redress through our dispute resolution process, and through Canada's courts.

The remaining three priorities make critical contributions to enabling our success in achieving our mandate to make sure clients pay their fair share of taxes and receive their rightful share of benefits. Strengthening trust, transparency and accountability will allow us to maintain the public's trust, increase client satisfaction and positively influence overall voluntary compliance rates. Through Enabling innovation, the CRA will change and adapt to find efficiencies in the design and delivery of services our clients need, as well as explore the use of new tools to maintain fairness. None of this is possible, of course, without the contribution of our employees, which is why the CRA is working towards Empowering our people to excel.

We will look at how to better use technology and business innovations to proactively ensure compliance and shift some of the administrative burden away from our clients. This involves adopting a client-centric approach to designing and delivering our internal and external programs and services, and fostering a culture of service with all employees.

Our journey to transform our programs and services began with extensive consultations with CRA employees and our clients on how we can serve them better. In particular, we gathered online and face‑to‑face feedback from individuals about the programs and services we offer, through the Serving Canadians Better consultations. These sessions made it clear that, while we are on the right track, there is more work to do.

One of the ways that we can continue to improve is to make our services easier to use by gaining a better understanding of the experiences of those we serve. This means understanding clients' needs, expectations, and preferred methods of interaction and working with them to design our programs and services to meet their needs. Our intent is to respond to the feedback we received by further enhancing our digital services, strengthening our communication and website, and clarifying available payment options for clients. We will look to improve their end-to-end experience in ways that meet their needs.

We also consulted with small and medium enterprises and their representatives. On June 10, 2019, we released the report on the CRA's 2018 Serving You Better Consultations with Small and Medium Businesses. This report sets out improvements that the CRA will put in place by 2021, in response to this feedback.

One year into our journey, we believe we are well on our way to building a consistently excellent client experience. We have taken important foundational steps inside our organization by:

• adopting a new vision (Trusted, fair and helpful by putting people first)
• committing ourselves to a set of principles—developed with CRA employees—that guide our decision-making and how we work
• affirming our core values of professionalism, collaboration, integrity and respect for all

Our objectives

It is our overarching objective to ensure that all of our interactions with our clients consider their needs and expectations, making them feel valued and understood.

For example, vulnerable populations, such as modest-income households, Indigenous peoples, seniors, newcomers to Canada, and persons with disabilities may face barriers when it comes to filing their income tax and benefit returns and getting the benefits and credits for which they are eligible.

We want clients to have easy access to clear, accurate, consistent and timely information. We also want them to easily understand their obligations to make it easier for them to comply.

Over the planning period, our objectives for providing a seamless service experience are to:

• provide our clients with access to easy-to-understand information
• interact with clients in ways that are integrated, tailored, digital and accessible, while leaving no one behind
• reduce the compliance burden of our clients

Providing our clients with access to easy‑to‑understand information

As part of our commitment to responding to client requests for new and easy-to-understand information, we will improve our communications as well as our program design and service delivery to better serve clients, maintaining their trust and increasing their levels of satisfaction. Over the planning period, the CRA will continue to:

• make information and services on our website easy to find and understand
• develop new client-focused educational products, such as podcasts and webinars, on complex compliance topics that require a greater understanding on the part of businesses, employers and other stakeholder groups
• streamline our background processes to support a more integrated approach to interacting with our clients and facilitate clients' use of online services
• enhance our analysis of client research, data, trends and public environment analysis and strategically use social media and other communication channels to learn more about clients' experiences in dealing with the CRA as well as the tax and benefit issues that matter most to them
• update our correspondence in response to client feedback to ensure clients uninterrupted access to benefit payments and credits, and evaluate the effectiveness of these strategies to make further improvements
• expand in-person outreach activities to Indigenous communities across the country to help them access the benefits and credits for which they are eligible
• develop additional information materials in newcomer and Indigenous languages to improve the accessibility of information for people who do not speak English or French
• improve outreach, small business liaison, and Community Volunteer Income Tax Program services to territorial residents through the Northern Service Centres
• partner with other government departments to consult with organizations representing Indigenous peoples on service expectations with regard to implementing Bill C-91: An act respecting Indigenous languages

• June 2020 – make it easier for clients to apply for the disability tax credit based on feedback from clients and medical practitioners
• October 2020 – enable clients' representatives to update client information and provide estate documents (for example, wills, death certificates) in our Represent a Client online portal
• March 2021 – use feedback from our clients to refine—and begin testing new prototypes of—clients' most commonly accessed CRA apps, forms and webpages
• May 2021 – enable corporate clients to view their notices of assessment in certified corporation tax preparation software
• March 2022 – provide our small to medium sized contact centres with opportunities to transform, optimize, and leverage new technologies to provide clients with an enhanced seamless service experience

Interactions are integrated, tailored, digital‑first and accessible

As we transform our program design and service delivery using a client-centric approach, we will enhance and integrate all of our service channels. In addition, we will:

• use innovative engagement methods—including design jams and service pilots—to inform the development of our programs and services in ways that meet the needs of clients
• offer clients more personalized services and outreach
• equip employees with the necessary client experience tools and training to support them in transforming how our programs and services are designed
• enhance the overall experience for clients claiming the scientific research and experimental development tax credit by strengthening client relationships to promote predictable self assessment
• be proactive in providing clients information on:
  • our Community Volunteer Income Tax Program, which provides access to the expertise needed to file a return and apply for benefits and credits
  • potential eligibility for benefits to clients who have not sent us their tax returns, so that those that are eligible receive payments
• develop a strategy to ensure that, no matter how clients interact with us, we communicate with a single voice, providing our clients with a seamless and consistent service experience across all service channels

Our commitments:

• May 2020 – streamline the payment experience for business clients by integrating the ability to make a payment through their non‑CRA products, such as tax preparation software
• Update our three online portals, My Account, My Business Account and Represent a Client, to:
  • May 2020 – enable more clients who are being audited, and their representatives, to view appropriate audit information related to their account
  • October 2020 – confirm to clients that we have received documents they have sent to us electronically through our Submit Documents service
• September 2020 – use client insights and design thinking to identify challenges that clients experience in their interactions with the CRA and barriers to better client service
• March 2021 – educate individuals about the benefits for which they may be eligible by mailing out an additional 200,000 letters
• March 2022 – offer a call-back option to callers to our business enquiries telephone line
• March 2022 – proactively provide clients, using predictive analytics, with supplementary and technical information and expert assistance related to tax deductions and credits or complex information requests
• March 2023 – ensure more timely resolution of clients' disputes by modernizing our appeals systems to enable employees to have a more holistic view of clients' file

Reducing the compliance burden of our clients

To begin reducing the compliance burden of our clients, we will undertake the following activities:

• improve our information and tools to help clients avoid common errors when they apply for benefits or self‑assess their tax situation
• give clients more opportunities to address simple compliance issues before taking audit or compliance action
• take a proactive role in helping to determine clients' tax liabilities, using more information provided to us from third parties who deal with those clients; this prevents the need for clients' returns to be amended at a later date, and ensures the CRA is able to base clients' benefits payments on accurate information
• improve client awareness about their reporting obligations and support the sharing of information and best practices within the contracting community
• look for opportunities to work with government and non-government partners to simplify reporting and reduce the burden of filing tax and benefit returns
• seek to provide large business clients with earlier tax certainty

• October 2021 – help businesses comply by sending advance email reminders that returns or payments are due
• March 2022 – further simplify how clients and their representatives communicate with us during the verification of tax returns by enabling the upload of more information through our My Account and Represent a Client online portals
• March 2022 – make 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
• March 2022 – make it easier for clients to get a resolution on their first call, eliminating the need to call again or write to another CRA program area, by empowering front-line employees with appropriate tools and accesses

Non-compliance takes many forms: it may be the result of errors, a misunderstanding of rules or a lack of appropriate information. In some cases, a client may choose not to comply. Identifying and addressing non-compliance is a large part of what the CRA does. This supports revenue collection, but also promotes fairness in the tax and benefits administration system by ensuring that all clients are paying their required share of taxes.

The CRA adapts its compliance approach depending on the type of non-compliance. The strong legislative foundation that underpins the administration of Canada's tax laws promotes compliant behaviour. We do this through reviews, outreach and education, sanctions and penalties for non-compliance and tools such as requirements for employers to report earnings and withhold source deductions. We also pay particular attention to multinational enterprises and high-net-worth individuals; more than a third of our audit resources are dedicated to the large business and high-net-worth population. The CRA automatically risk assesses 100% of tax returns filed by large businesses every year, as they are deemed to be of highest risk. The most egregious cases of wilful non-compliance are referred to the Public Prosecution Service of Canada to be considered for criminal prosecution. Once an assessment or reassessment is confirmed (that is, it is not subject to dispute), the CRA takes steps to ensure clients pay the amounts owed. Where clients may not be able to meet their tax obligations because of personal misfortune or circumstances beyond their control, the CRA's relief provisions allow the Minister to exercise her discretion to help by, for example, cancelling or waiving penalties and interest that would otherwise be due.

When undertaking interventions to address non-compliance, the CRA strives to maintain a client-centric approach. This means that we adapt our intervention to the circumstances, while remaining professional, transparent and honest in how we treat the client. In addition, we ensure our decisions are timely and that the outcomes of our actions respect the legislation and applicable policy. The CRA is committed to treating all clients with respect, regardless of the extent of the non-compliance that we have identified. We strive to ensure that non‑compliance is detected and addressed, using sound risk management to guide our reviews, audits, criminal investigations, and debt collection, along with education and outreach.

Our objectives

The CRA works hard to understand client behaviour and identify areas of economic activity that are at highest risk of non-compliance. The CRA has expanded its tools and capacity to target clients who attempt to conceal their assets to avoid paying their share of tax, thanks to a combined investment of over $1 billion in the 2016, 2017, 2018, and 2019 budgets. These investments support the CRA's efforts to combat aggressive tax avoidance and tax evasion and improve tax compliance. By leveraging business intelligence and analyzing available data, the CRA regularly monitors tax compliance in Canada's real estate sector, with a significant focus on major centers such as the Greater Toronto Area and the Lower Mainland in British Columbia. We have also established new real estate audit teams in the high-risk regions of British Columbia and Ontario dedicated to addressing non-compliance in the real estate sector. In addition, we have hired additional auditors, conducted outreach and education, and built technical expertise to target non‑compliance associated with cryptocurrency transactions and the digital economy.

Engaging with our global partners is instrumental in maintaining fairness. We participate in various international forums to examine how other tax administrations assess risk to their revenue bases, and identify areas of common concern across jurisdictions.

Over the planning period, we will focus on:

• enhancing our ability to detect and deter non-compliance
• strengthening collaboration with other tax administrations
• improving how we manage the tax debt

Enhancing our ability to detect significant non-compliance

Wilful acts of non-compliance, such as failing to comply with tax obligations related to registering, filing and reporting, tax evasion and aggressive tax avoidance, can place the integrity of Canada's tax system at risk. Anti-avoidance rules and tax loopholes are systematically reviewed to ensure that the wealthy do not benefit from unfair tax breaks and that international corporations pay taxes in accordance with Canada's tax laws. To enhance our ability to detect tax evasion and avoidance, the CRA will continue to:

• undertake research and conduct studies and analyses to improve our understanding of and ability to identify clients with the highest risk of non-compliance
• capitalize on education opportunities and feedback mechanisms to educate clients on entitlements, obligations, and reporting errors
• gain access to better data and improve our business intelligence, supported by advanced data analytics, to identify the interventions that best support compliance and help ensure that only those who are eligible receive benefits payments
• expand our capacity to gather information about non-compliant taxpayers, while ensuring we respect their privacy
• undertake research concerning the best practices of other tax administrations to identify potential ways to boost the actions the CRA is already taking to fight tax cheating through our Offshore Tax Informant Program
• use industry knowledge and business intelligence to keep up with e-commerce trends and target non-compliance
• explore how new and alternative sources of data and information through internal and external sources—and innovative ways to use our existing data—can enable the CRA to more effectively detect and resolve potential non compliance
• enhance our information technology infrastructure and criminal investigations tools to fight tax evasion and aggressive tax avoidance
• improve our risk assessments daily through additional data, new software and enhanced algorithms
• increase our knowledge and experience with compliance risks posed by new technologies (cryptocurrencies, digital delivery and platform series)
• target non-compliance among high net-worth clients, their related entities and those that enable tax avoidance by risk assessing that population and conducting audits

Our commitments:

• April 2020 – continue to increase audit efforts to address high risk issues within the real estate sector in the Greater Toronto and Greater Vancouver areas, using our new real estate audit teams
• December 2020 – develop a dedicated compliance strategy to better detect and address non-compliance in digital commerce for both income tax and goods and services tax/harmonized sales tax
• March 2021 – refine, add and automate algorithms to improve the risk assessment of high-net-worth individuals and their related economic entities

Strengthening collaboration with other tax administrations

Todays' global economy requires intensified international co-operation and greater integration among revenue administrations around the world, including transparent systems and information-sharing across borders. International engagement helps ensure the integrity and fairness of Canada's tax system and improve the efficiency and effectiveness of its administration. In the context of the global economy, effective and fair tax administration is best achieved when countries collaborate so those who seek to avoid or evade their obligations have fewer opportunities to do so. We will continue to:

• engage with other organizations to share best practices and learn about their whistleblower programs
• use our work with other tax administrations to effectively and efficiently deal with emerging tax avoidance and tax evasion issues
• lead efforts to strengthen tax administration capacity in developing countries through our active participation in the Organisation for Economic Co-operation and Development (OECD), and in particular, its Forum on Tax Administration (with Commissioner Bob Hamilton as the Vice-Chair)
• support work being done by the OECD and the G20 to address tax challenges from the digital economy
• further develop the Knowledge Sharing Platform for Tax Administrations, a global online tool to share tax knowledge and expertise to enhance tax capacity building efforts in developing countries
• adopt a coordinated approach to risk‑assessing participating multinational enterprise groups through a pilot program (International Compliance Assurance Programme), involving 18 tax administrations, that aims to reduce the resource burden on both multinational enterprises and tax administrations using country-by-country reports and other information to facilitate open and co-operative multilateral engagements
• enhance tax administrations' mutual understanding of key transfer pricing risks, and develop a global risk register to enhance tax administrations' views and approaches
• promote early tax certainty and international co-operation among all tax administrations by conducting joint audits; this is an effective tool to ensure the right amount of tax is paid while minimizing the risk of double taxation
• participate in the Joint Chiefs of Global Tax Enforcement, established in 2018 by leaders of tax enforcement authorities from Australia, Canada, the Netherlands, the United Kingdom and the United States to combat transnational tax crime and enablers of global tax evasion by making the most of shared data, intelligence and technology

Our commitments:

• September 2020 – provide early tax comfort to multinational enterprises by facilitating transparent, open, and co-operative multilateral engagements between them and other tax administrations in completing the OECD's International Compliance Assurance Programme 2.0 Pilot
• December 2021 – enhance the understanding of key risks and compliance approaches among international tax administrations by sharing CRA knowledge and other information concerning transfer pricing

Improving how we manage tax debt

The CRA collects tax debts, as well as other types of government debt, assessed through federal, provincial and territorial laws. Collecting outstanding tax owing and other debts is critical to protecting Canada's tax base and providing governments across Canada with the revenue needed to support programs and priorities. We will continue to:

• evolve our collections strategies to more effectively enforce Canada's tax laws and policies responsibly while striving to maintain our clients' trust in the fairness and integrity of the CRA and the Canadian tax system
• prevent new tax debt by better understanding what is driving clients to accumulate these tax debts
• increase client education and provide improved tools for them to self-resolve their tax debts
• expedite the processing of clients' tax and other debt payments to avoid unnecessary debts appearing on their files
• increase timely interventions with our clients by making our tax debt correspondence more accessible, concise and clear
• maximize the effectiveness of our debt management call centres
• build on our strong foundation of analytics and risk assessment to ensure that CRA collection activities are carried out in ways that are fair for all clients

Our commitments:

• March 2021 – resolve the remaining $1.9 billion in tax debt (of the original $7.4 billion) committed to by the CRA as a result of Budget 2016 investments
• March 2021 – develop a timeliness service standard for responding to telephone enquiries received on the Debt Management Call Centre toll-free phone lines
• March 2023 – tailor tax debt resolution services, following ongoing pilot projects to gather business intelligence, to different categories of clients, like vulnerable populations, family members of deceased individuals, or businesses, by creating teams specialized in their specific issues

A key component of this trust is confidence that client information must always be protected, as it has the potential to directly influence compliance rates. To meet their tax obligations and receive any benefits for which they are eligible, our clients must give us personal and financial information. The CRA has an excellent reputation for safeguarding this information; however, we are operating in a public environment that is increasingly concerned about the potential for data breaches and identity theft. This is why we continue to make investments in security and to evolve our IT security strategy in order to protect CRA data, information assets, and IT infrastructure from increasingly sophisticated cybersecurity threats.

These investments will strengthen our operational efficiencies, our agility to provide new digital services more frequently, and our ability to adopt new technologies earlier. They will also increase client satisfaction with CRA services by providing more ways for clients and partnering government departments to interact with us, and by enhancing the digital services we offer.

Protecting privacy and confidentiality rights is central to the CRA's integrity. The protection of our clients' privacy is managed through:

• strict adherence with the protections contained in the Income Tax Act and the Access to Information and Privacy Act
• our commitment to our Code of Integrity and Professional Conduct
• a strong culture of security enshrined in policy, procedures, training and awareness

We strive to be open in the way we manage our day-to-day operations and to achieve results that demonstrate quality, efficiency and effectiveness. We are committed to being clear and transparent when reporting to our clients about the performance results that we have achieved, and in our contribution to the Open Government initiative. We also believe that conducting our activities sustainably reinforces our clients' trust that we are using our resources efficiently and responsibly.

Our objectives

The CRA operates under a rigorous and ever-improving system of tools, technologies and processes. We are committed to supporting the integrity of employees and monitoring access to our network to protect the security of both people and information. For this reason, we continue to improve our information and data security practices to protect CRA's data repositories and expand our safeguards against data loss.

Our clients want the CRA to be more up-front about how we collect and use personal information, and they want more transparency in their dealings with government. Privacy and security are critical aspects of our business, from fostering a culture of integrity to preventing, monitoring, detecting, and managing any potential incidents.

Over the planning period, we will focus on:

• strengthening our security posture
• proactively responding to clients' privacy concerns
• increasing transparency
• promoting sustainable development

Strengthening our security posture

We are committed to protect and handle the personal and financial information of our clients in a secure and responsible manner. Given the rate at which technology advances, the CRA is continually modernizing security safeguards. To strengthen our security posture over the planning period, we will undertake the following activities:

• explore innovative ways to help employees understand their security responsibilities, through security awareness and training
• implement security technologies and processes, enhance controls to prevent and detect internal fraud and misuse of information, and expand access management controls and procedures to protect the confidentiality of client information
• increase our monitoring of information leaving the CRA in electronic format
• develop strategies to enhance security against insider threats

Our commitments:

• March 2021 – expand the proactive monitoring of user actions on CRA systems while ensuring employees have the accesses they need to serve our clients
• June 2021 – improve the CRA's information technology and cyber‑security defenses and better protect client data from unauthorized access, alteration or loss (with the completion of Phase 2 of the Data Security Initiative)
• June 2022 – ensure that the CRA's information technology security program continues to be effective and that it adapts to new threats by completing a triennial third-party benchmark exercise to identify and prioritize opportunities to improve

Proactively responding to clients' privacy concerns

The trust our clients place in the CRA to safeguard the privacy of their personal information is a cornerstone of our work. We will continue to respond to clients' privacy concerns and to a changing landscape of increasingly frequent and prevalent data breaches and scams.

To continue to be proactive in how we respond to clients' privacy expectations, we will:

• protect personal information and promote the importance of security
• uphold personal privacy rights in accordance with legislation and policy, including the management of internal privacy breaches
• clarify privacy responsibilities to ensure public accountability in how the CRA is protecting our clients' sensitive personal information
• strengthen awareness within the CRA about the importance of privacy for our clients
• clarify internal privacy accountabilities and interdependencies
• adopt the principles of privacy‑by‑design and build more CRA capacity for privacy management

Our commitments:

• April 2020 – implement a CRA‑wide protocol for responding to external privacy breaches
• April 2020 – establish internal privacy governance structures
• June 2020 – update the CRA's web content related to the handling of personal information
• August 2020 – review, update, and create new internal privacy policy instruments and tools
• March 2021 – develop a CRA‑wide privacy training and awareness plan
• March 2021 – build on ongoing activities to promote videos on fraud and scam awareness by increasing the frequency and scope of proactive outreach across the country, using media, social media, and stakeholder associations

Increasing transparency

Canada is a member of the multilateral Open Government Partnership which has over 70 participating countries committed to making their governments more open, accountable and responsive to citizens. Open government connects people to the governments which serve them, and helps make policies and services more citizen centred. To support this endeavour, the CRA contributes to the federal Open Government initiative, proactively releasing data and information, except that which must be withheld for privacy, confidentiality and security reasons.

To demonstrate our commitment to provide effective service to clients and to improve our transparency and accountability, we continue to:

• set service standards that publicly state, on canada.ca, the level of service that our clients can reasonably expect from the CRA
• take steps to reinforce transparency, accountability and client‑focused service by making sure all of our performance indicators and measured results are clearly stated, accurate, consistent, ambitious and meaningful to our clients
• emphasize the importance of ensuring that our policies are up‑to‑date so that they provide our employees with the direction they need to do their jobs while supporting the CRA's accountabilities
• work with clients when we design our services, increasing transparency of the work CRA is doing and holding us accountable to their needs and expectations
• respond to recommendations from the 1st annual report of the Disability Advisory Committee (DAC), improving access to disability tax measures
• communicate information to our clients on emerging tax schemes
• publish enforcement notifications on a timely basis
• update internal guidelines and standards to move criminal investigation cases quicker, ensuring accused are tried within a reasonable timeframe

Our commitments:

• April 2020 – publish a baseline measure, developed with industry experts, of how clients perceive their experiences with the CRA, to enable us to improve the service experience of clients
• December 2020 – enhance the timeliness of the CRA's responses to clients' letters to the Minister of National Revenue and CRA executives by implementing a more efficient tracking tool

Promoting sustainable development

Part of our accountability to clients is carrying out our tasks in a sustainable manner. As an employer of more than 46,000 people, we recognize the impact we have in the communities in which our employees live and work. We are committed to continuing to:

• minimize harmful emissions from our vehicle fleet
• purchase products responsibly to reduce environmental impacts
• take action to understand climate change impacts that could potentially affect our assets, services and operations across the country
• contribute to the United Nations' 2030 Agenda for Sustainable Development and the United Nations' Sustainable Development goals

Our commitments:

• June 2020 – implement a new sustainable development strategy to green our operations and drive our environmental sustainability agenda through to the end of 2023
• March 2021 – Reduce greenhouse gas emissions by purchasing 75% of new light-duty unmodified administrative fleet vehicle as zero-emission vehicles or hybrids where operationally feasible

Our objectives

The CRA recognizes the importance of innovation to deliver our mandate. As we continue to advance innovative efforts across the organization, we are challenging ourselves to look beyond established business practices and familiar mindsets. The CRA is promoting the conditions for innovation so employees at all levels think critically about how they do their work, collaborate, network and experiment with new ideas.

Over the planning period, we will:

• foster innovative mindsets and approaches
• enhance our operations through continuous improvement
• explore innovative technologies and analytical methods

Foster innovative mindsets and approaches

Aligned with the Government of Canada's Beyond2020 public service renewal initiative, the CRA recognizes that the mindsets and behaviours of its employees are crucial to drive innovation and affect sustainable change. This change goes beyond modifying policies, procedures, and structures. It represents a change in culture and behaviours. Recognizing this, the CRA is exploring new ways to:

• build comfort levels with taking intelligent risks and learning from past experiences on our path forward
• create an environment where employees learn from each other, leverage lessons learned and embrace challenges and setbacks with creativity and imagination
• explore and experiment with new ways to encourage employees to think differently about what is possible to drive positive change
• use experimentation to measure new approaches in order to determine what is working and what is not at a small scale before adopting these approaches broadly
• foster collaborative relationships internally and with other federal, provincial and territorial government departments, civil society organizations, international counterparts and academia to gain innovative perspectives on common issues

Our commitment:

• June 2020 – implement a plan to operationalize innovation within the CRA's culture and processes

Enhance our operations through continuous improvement

The CRA values the small innovations occurring every day throughout the organization. We understand that small innovations can create a large impact. To foster a culture of continuous improvement, the CRA will:

• expand the use of LEAN, whose principles help identify root problems and generate recommendations to improve business processes and procedures, across the organization
• review our internal processes continually with the intent of improving service delivery
• foster an environment where employees feel empowered to propose ideas to enhance the activities that generate the most value to clients, rather than wait for senior management to direct them to make changes

Our commitments:

• June 2020 – promote the use of LEAN principles across the organization by creating an agency‑wide community of practice
• March 2021 – apply LEAN principles to six key business processes to optimize resources and improve outcomes for clients

Explore innovative technologies and analytical methods

A great resource of this century is information. As the volume of data held by the CRA continues to grow, it is important for the CRA to further use its data holdings to achieve better outcomes for clients.

We will continue to invest in leading‑edge information technologies. This will strengthen our operational capabilities, including our agility in providing new services more frequently and adopting new technologies earlier, with the purpose of providing clients with a seamless digital service experience. We will undertake the following activities over the planning period:

• ensure our software designers and engineers have the expertise, tools and processes necessary to transform electronic processing capabilities
• experiment with using artificial intelligence (AI), to improve service in CRA business lines using tools such as chatbots, to detect non-compliance, and to increase the efficiency of internal operations

Our commitments:

• April 2020 – implement a plan for the CRA's responsible use of AI, ensuring technological developments are aligned with business priorities and under appropriate governance
• March 2021 – experiment with improving service to clients and our detection of non-compliance using machine learning models (for example, models to detect goods and services tax/harmonized sales tax non-compliance)
• March 2021 – provide clients with reliable, accurate data by developing, testing and applying factors that help evaluate the quality of data before it is processed and released

To best serve our clients, the CRA must strengthen and maintain a healthy, engaged and productive workforce. The CRA continues to invest in a modern workplace that promotes engagement, learning, collaboration, information sharing and increased productivity. We are committed to fostering, supporting and developing leaders who empower and inspire their employees to be engaged in their work, innovate and share ideas. We do this through initiatives like character‑based leadership, which we look to expand.

Our objectives

The CRA's employees at all levels should possess a character that exemplifies our organizational values and desired service culture. To address existing and emerging workforce needs, we are taking a proactive approach to acquiring talent.

A major transformation initiative that the CRA has undertaken is staffing redesign, which seeks to renew how our organization manages all aspects of staffing while keeping the needs of the client (the candidate for a job) at the centre of the process. We are working to both implement improved processes and experiment with new models to support the CRA's capacity to be agile and flexible in meeting its operational needs. Our goals include reducing the time to staff and enhancing the candidate's experience with the process.

This will better position the CRA in an increasingly competitive labour market. For our organization to continue to be successful, we must continue to recruit the talent we need, especially in high demand specialties like data scientists, business analysts, forensic accountants, and project managers.

We are also committed to fostering a culture of lear ning where employees have access to learning solutions to support them in maintaining and acquiring the skills and competencies to support them in their career development and the CRA in its transformation.

Employees are more likely to feel empowered to participate in this transformation if we provide them with a healthy workplace that minimizes harassment, discrimination and the potential for workplace violence. This means fostering safe, respectful and inclusive spaces, where employees can reach their full potential.

Our focus over the planning period will be on:

• addressing current and future workforce transformation needs
• supporting safety, respect, well-being, diversity and inclusion

Addressing current and future workforce transformation needs

At the CRA, we are committed to strengthening our service culture, which begins with trust and engagement between leaders and employees. The workplace of the future requires that we:

• provide a healthy and safe work environment
• create a culture that fosters continuous learning
• support employee well being, while still meeting business requirements in this new, rapidly changing environment, adapting to technology changing how, where, and when we work
• engage, mobilize and maximize our employees' skill sets
• identify recruitment gaps and the CRA's future needs
• train employees to apply a client‑centric approach in their respective roles to improve the service experience for our clients
• support employees in adopting the CRA's service culture by listening to their feedback and addressing barriers to providing the level of service that clients expect of CRA
• diversify our workforce through targeted recruitment to ensure emerging skillsets that are required to achieve our mandate

Our commitments:

• May 2020 – consolidate and present to internal stakeholders the findings of consultations with internal and external stakeholders to understand the learning landscape at the CRA, as well as identify opportunities and best practices in learning
• September 2020 – provide our employees with the training, guidance and tools to understand client needs, preferences and expectations and deliver a better client experience
• October 2020 – develop an action plan and roadmap to prepare for the future of learning
• March 2021 – create a national mobility bank to make it easier for employees to move laterally across the CRA
• March 2022 – experiment with alternate staffing strategies to target existing and emerging workforce needs

Supporting respect, well-being, diversity and inclusion

A healthy and empowering work environment fosters a productive and high performing workforce. We are dedicated to creating healthy workplaces by:

• promoting civility and respect, and respectfully challenging behaviours that do not reflect CRA and Public Service values, as outlined in the Code of Integrity and Professional Conduct
• promoting support programs, resources, and tools to assist managers who are facing accessibility and other challenging workplace situations, including leading employees with mental health issues, addressing workplace conflict, harassment or violence, and accommodating illnesses or injuries
• demonstrating further progress against all three pillars of the Federal Public Service Workplace Mental Health Strategy
• addressing situations of harassment, violence and discrimination and highlighting the need to prevent these situations through civility and respect, and embracing diversity and inclusion

Our commitments:

• March 2021 – implement a comprehensive action plan to ensure the CRA's compliance with the new legal and regulatory requirements that expand the definition of violence to include harassment
• March 2021 – implement the third phase of the CRA's Respectful Workplace and Well-Being Strategy in support of the Federal Public Service Mental Health Strategy

Spending and human resources

Spending trend (dollars)^{Footnote 3}

The majority of the increase in the CRA's overall budget is attributable to its statutory appropriations which include spending associated with the climate action incentive (CAI) payment for fiscal years 2018–19 to 2022–23 (actual spending: $663.8 million in 2018–19; forecast and planned spending: $2.400 billion in 2019–20, $3.405 billion in 2020–21, $4.385 billion in 2021–22, and $5.055 billion in 2022–23). The CRA is responsible for the administration of the fuel charge in jurisdictions that do not meet the federal carbon pricing benchmark. This includes the delivery of the CAI payment which returns the majority of the direct proceeds from the fuel charge to individuals and families of the province in which the proceeds are raised.

Actual and forecast spending under the CRA's voted appropriations for fiscal years 2017–18 to 2019–20 also includes technical adjustments such as the CRA's carry-forward from the previous year and funding for severance payments, parental benefits, and vacation credits. In 2017–18, a significant portion of the increase in spending is associated with the cash out of severance benefits for employees represented by the Public Service Alliance of Canada, Union of Taxation Employees. In 2019–20 the increase in forecast spending is largely attributable to the aforementioned carry-forward as well to new funding to implement and administer measures announced in the Budget 2019 and growth in funding for federal budget and policy measures announced in prior years.

Over the planning period, the CRA's voted appropriations show a slight reduction, from $3.548 billion in 2020–21 to $3.496 billion in 2022–23. This is primarily as a result of a net decrease in funding received to implement and administer various measures announced in the federal budgets as well as for the federal carbon pollution pricing system and the taxation regime for cannabis. These reductions are partially offset by increases associated with collective bargaining adjustments.

Budgetary planning summary (dollars)

The following table reconciles gross planned spending with net planned spending for 2020–21.

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

The increase in forecast FTEs in 2019–20 is largely attributable to new funding received to implement and administer measures announced in the Budget 2019 as well as growth in funding for federal budget and policy measures announced in prior years, including the federal carbon pollution pricing system. The 2019–20 fiscal year also reflects an increase in FTEs associated with funding to address operational priorities. The decrease in internal services FTEs is largely due to the attribution of direct internal service costs to the programs starting in 2019–20 (primarily within the tax core responsibility).

Over the planning period, the reduction in FTEs from 41,790 in 2020–21 to 41,108 in 2022–23, is primarily the result of a decrease in funding for the federal carbon pollution pricing system and the taxation regime for cannabis.

The Condensed Future Oriented Statement of Operations provides a general overview of the CRA's operations. The forecast of financial information on expenses and revenues is prepared on an accrual accounting basis to strengthen accountability and to improve transparency and financial management. The estimated and planned spending amounts presented in other sections are prepared on an expenditure basis; as a result, amounts may differ. A more detailed Future Oriented Statement of Operations and associated notes, including a reconciliation of the net cost of operations to the requested Parliamentary appropriations, are available in the CRA's Departmental Plan.

Supplementary information

Corporate information

Head office

Organizational profile

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

Reporting framework and planned results^{Footnote 9}

The following indicators are used by the CRA to assess its overall progress toward the achievement of its expected result for its core responsibilities. For more information on the methodologies used to calculate these indicators, go to GC InfoBase.

Bolded results are results that can be compared to previous year results, as there is no change to the indicator or the methodology used to calculate it. Results not shown in bold are results for which the indicator or methodology has changed, therefore prior year results are not comparable.

Expected result and program inventory

Canadians voluntarily comply with their tax obligations, non‑compliance is addressed, and Canadians have trust in the CRA

Program inventory:

• tax services and processing
• returns compliance
• domestic compliance
• international and large business compliance and criminal investigations
• objections and appeals
• taxpayer relief
• service compliance
• charities
• registered plan
• policy, rulings and intepretations

Expected result and program inventory

Canadians receive their rightful benefits in a timely manner

Program inventory:

• benefits

CRA staffing principles

Taxpayer Bill of Rights

Links

Estimates by vote: For information on the CRA's organizational appropriations, consult the 2019–20 Main Estimates.

Detailed future oriented statement of operations and associated notes, including a reconciliation of the net cost of operations to the requested authorities, are available on the CRA's departmental webpage.

Supporting information on planned expenditures, human resources, and results related to the CRA's Program Inventory is available in the GC InfoBase.

The following supplementary information tables are available on the CRA's Departmental Plan webpage.

• CRA Sustainable Development Strategy
• Definitions
• Details on transfer payment programs of $5 million or more
• Endnotes
• Complete Future Oriented Statement of Operations
• Gender-Based Analysis Plus