Updates on CRA service improvements

CRA’s response

The CRA agrees with this recommendation.

CRA’s action plan

The Canada Revenue Agency has recently extended the hours of operation for its main contact centres (Individual Tax, Benefit Enquiry and Business Enquiry) from 8:00 am to 8:00 pm local time to 6:30 am to 11:00 pm ET (Monday – Friday) and Saturdays from 9:00 am to 5:00 pm local time to 7:30 am to 8:00 pm ET. By March 31, 2026, the CRA will review and analyse the implications of further harmonizing across the country the operating hours of its other services.

CRA’s response

The CRA agrees with this recommendation.

CRA’s action plan

The CRA will make changes to the published eligibility criteria to include certain self- employed individuals in February 2025.

Note that the ITAVP is administered by Revenue Quebec.

CRA’s response

The CRA agrees with this recommendation in principle.

CRA’s action plan

The CRA acknowledges the success of its CVITP Grant pilot, and will continue in 2025 to seek funding for the Grant, including supplemental amounts for organizations that serve Indigenous and Northern communities, as well as other underserved populations, such as rural and remote communities.

CRA’s response

The CRA agrees with this recommendation.

CRA’s action plan

The CRA uses an established communication strategy, which includes informing Canadians proactively on Canada.ca as soon as possible once there is a known significant program delay that impacts taxpayers. The following are steps included in the strategy:

Prompt identification

Issues are usually detected by either CRA people or systems. Once an issue is confirmed, the CRA ensures lines of communication and an action plan are established.

Gathering information

Based on detailed information pulled from the various applicable data sources, specifications of the issue are determined, including cause, timeframe for a fix, and the number of clients impacted.

Communication

Using the information gathered, suitable communication is developed to inform impacted clients. Depending on the situation, communications may include direct telephone contact, phone queue messages, written acknowledgement, notice or banner posted on Canada.ca, such as benefit pages, etc. Communications are adjusted based on ongoing updates or changing circumstances.

Review process

A review is conducted to ensure the issue that caused the delay is fixed. CRA assesses the issue and its cause, in order to find a solution and prevent it from happening in the future. This includes how communication was undertaken.

The CRA recognises that enhancements can be made. To further transparency, the CRA will, by the end of Q3 2024/2025, review its approach for identifying and informing clients of significant delays, to ensure that core programs in the CRA’s program inventory communicate any significant service delays on the program’s Canada.ca webpage(s) and on the CRA’s Check Processing Time page in a timely manner, and that updates are made to these pages once updated timelines are known. CRA has already initiated such notifications, such as changes to the CRA’s Service Feedback – Complaints page, as well as the corresponding information on the Check Processing Time page, updated to show actual processing times in November 2023.

CRA’s response

The CRA agrees with this recommendation.

CRA’s action plan

The CRA has been assessing the feasibility of establishing a service standard for complex adjustment requests by running a pilot starting in 2021–22, which has been finalized as of 2023–2024.  The CRA has updated its Check CRA Processing Times tool to include the expected processing times for complex adjustment requests.

A link to the Check CRA Processing Times tool will be added to the Income Tax package webpage by the 2024 filing season. This page will be updated for the new year on January 23, 2024.

The CRA piloted a service standard for complex T1 adjustment requests starting in 2021–22 and has now finalized that pilot. The new service standard will be implemented for 2024–25.

There is a service standard for paper and electronic filing of the Income tax and benefit return:

For the T1 income tax and benefit return – paper, the CRA service standard is to issue a notice of assessment within 8 weeks of receiving the return and any required supporting documents.

For the T1 income tax and benefit return – electronic, CRA service standard is to issue a notice of assessment within 2 weeks of receiving the return and any required supporting documents.

The processing time is a targeted time. It applies to a return received on or before the filing due date. It does not apply to a return filed for a deceased, bankrupt, international or non-resident individual, or an emigrant. Also, the time does not apply in a situation where returns are filed for multiple tax years or the CRA has to contact an individual for more information.

CRA’s response

The CRA agrees with this recommendation.

CRA’s action plan

The CRA has introduced more tools and streamlining processes in order to simplify the administrative process for applying for the CVITP Grant. Based on feedback from the first year of the grant pilot, the CRA reworked the funding formula and associated administrative requirements to remove the need to list expenses on the application by providing base funding to support organizations’ costs. The CRA also provides email updates to organizations during the application period with the number of returns the organization has filed through the CVITP. The result is that organizations need only their own tombstone information in order to apply for the grant. The CRA has also provided regional employees with improved tools to more effectively assist organizations for the grant to ensure that the information they provide on registration for the CVITP is thorough and complete. This includes listing all volunteers when registering, using the Community Organization Identification Number (a number that allows the CRA to count the number of returns filed by the organization) and indicating clientele in their registration profile (for example, Indigenous). Finally, the CRA also provides annual webinars to help organizations navigate the process.

As the CRA finishes up the third year of the grant, it has approved over $8.7M in grant payments to 3,367 applicants. As recently announced by the Minister of National Revenue, the grant program will continue for a 4th year and up to $5.9M will be available to support tax clinics in communities across the country.

CRA’s response

The CRA agrees with this recommendation.

CRA’s action plan

Data on non-filers, particularly those who do not interact with government, is incomplete and in some cases does not exist. Information available to CRA on non-filers is generally limited to individuals who have not filed a tax return but for whom employment or other information slip data is available, and individuals who have filed a tax return at some point but subsequently stopped filing.  As such, it is not possible for the CRA to identify all non-filers, since tax filings are the primary source for identifying and assessing client’s eligibility for benefits.

However, CRA is committed to estimating and identifying non-filers in Canada, and has a number of initiatives to identify and engage with non-filers, such as: promoting Simple File, leveraging strategies that focus on supporting newcomers, youth and Indigenous peoples, annually issuing the Non-Filer Benefit Letter, encouraging the adoption of the “Learn About Your Taxes” educational resources in schools, and working with Immigration, Refugees and Citizenship Canada to ensure newcomers to Canada are well-informed about their tax filing obligations and the benefits of filing.

CRA will also explore a new way of identifying non-filers by working with Statistics Canada to explore a complementary way to estimate non-filing rates for six vulnerable population segments (Indigenous, youth, seniors, newcomers, housing insecure individuals, and persons with disabilities) by linking Statistics Canada’s Census data to CRA’s detailed administrative income data and will publish a final joint report to the Standing Committee on Public Accounts in April 2024.

CRA’s response

The CRA agrees with this recommendation.

CRA employees’ participation in courses and learning events on the subject of diversity, inclusion and bias is already underway in furtherance of the CRA’s broader efforts related to its action plan on inclusion, equity, diversity, and anti-racism, and the CRA’s commitment to create awareness and provide educational opportunities that increases both management and employee knowledge on topics such as unconscious bias and inclusiveness.

Recognizing the need to develop and promote a culture of respect, empathy, diversity and inclusion within its work, the Charities Directorate has already taken the initiative to identify and to attend a wide array of related courses offered by the CRA, the Canada School of Public Service (CSPS), and external learning providers, as well as to incorporate each of these elements in our service to the public.

CRA auditors in particular, including those auditing registered charities, receive extensive mandatory training on compliance activities. A key component of this mandatory training focuses on support to auditors in exercising professional judgement, skepticism and impartiality, including how to safeguard against unconscious bias. Auditors also follow guidelines and complete training that helps them improve their soft skills which they exercise during interviews and on-site visits with taxpayers, including registered charities. 

Further unconscious bias training currently exists via the CSPS and CRA, with courses available to all CRA employees.

In order to continue developing and promoting a culture of respect, empathy, diversity and inclusion within its work, the CRA has established the following short, medium, and long term deliverables in response to the Ombudsperson’s report:

A – Agency-wide specific actions

• Effective immediately, mandatory unconscious bias training will be added to the 2023-2024 performance agreement for all indeterminate CRA employees, unless such training was completed during the past two years. 
• The training will continue to be offered to all term employees on a voluntary basis.

B – Actions specific to the Charities Directorate

Short term (by Q1 of 2023-2024):

• Make the CRA course, "HQ1257-000 Unconscious Bias: Building tools to navigate the mind", mandatory for all employees and decision makers involved in the charity audit process. 
• Ensure that all staff in the Charities Directorate involved in the audit process, including decision makers, are familiar with the job aid, Professional Judgement, Skepticism and Impartiality.
• Update all Charities Directorate training products, as appropriate, to include information on unconscious bias.

Medium term (by Q3 of 2023-2024):

• Introduce a new mandatory training suite tailored to the Charities Directorate and designed to strengthen the ability of staff to apply knowledge in the area of unconscious bias, cultural competency, and religious literacy, in their day-to-day roles. The new mandatory training suite will draw from existing course offerings in the CRA, the CSPS, other Government Departments and external providers. 
• Expand the requirement to complete “HQ1257-000 Unconscious Bias: Building tools to navigate the mind” to all Charities Directorate employees.

Long term (by Q4 of 2023-2024)

• Develop and offer annual refresher training on the key concepts covered in the mandatory training suite.

The CRA remains committed to ensuring its employees are well-positioned to serve all Canadians with empathy and respect. The Charities Directorate will ensure that all employees complete a new suite of mandatory training on unconscious bias, cultural competency, and religious literacy. The Charities Directorate will also ensure that annual refresher courses are completed.

CRA’s response

The CRA agrees with this recommendation.

The CRA has an Account Manager Model in place, which relies on branches across the Agency to appropriately advise the Public Affairs Branch on issues. This model involved development with an external contractor.  

The Account Manager Model (see Appendix A) provides partner branches with coordinated access to Public Affairs Branch (PAB) services when launching a major new project or initiative. PAB Account Managers bring together centres of expertise within the Branch to formulate sound and relevant advice and strategies, and to create and implement high quality products and services.

Additionally, the CRA has an extensive planned and unplanned outage communication plan. This includes details about appropriate communications action/tactics, depending on the varying level of severity of the outage. Following an issue, centres of expertise from different areas of PAB host a “post-mortem” to discuss what went well and what could have been improved, and the outage plan is updated accordingly. This process, including the CRA’s preparedness and response time, continues to improve with each issue that occurs.

After the account lockout in February 2021, the Account Manager model was followed by the program branch for the revocation of user IDs and passwords in March 2021. As the Account Manager Model was followed, PAB provided upfront advice and communications to affected Canadians, which resulted in the roll out to be clear, crisp and coordinated. The Account Manager Model has been successfully implemented for several credential revocations since February 2021.

CRA program branches contact their respective Account Manager at the beginning of the planning process and a coordinated effort is taken to prepare appropriate communications, and to brief senior management and other stakeholders, ahead of the credential revocation.

CRA's response

The CRA agrees with this recommendation.

Contextual alerts are placed on Canada.ca webpages based on operational requirements or issues that arise. The contextual alerts are reviewed and updated on a case-by-case basis.

PAB webpage owners regularly review the content on the webpages for which they are responsible, including adding or removing contextual alerts. Contextual alerts are updated when the program branch contacts the Account Manager through the Account Manager Model, who then advises on the appropriate communications tactics, including updating contextual alerts. The purpose of alerts can vary, and may include promoting new or enhanced services, highlighting important information, and/or updating and communicating outages or issues.

One existing challenge is that taxpayers’ level of engagement with digital services can vary from monthly sign-ins to once a year. As a result, alerts often need to remain visible longer to ensure all taxpayers have access to the information when they sign in. Alerts for issues are always prioritized, and other alerts are often temporarily hidden to emphasize messaging for ongoing issues. Alerts for issues are also presented in red to ensure they stand out. Alerts are generally changed following system releases when new services or changes are introduced to online services.

One example of multiple contextual alerts in multiple colours appears on the My Business Account webpage. This webpage also includes a contextual alert for revoked credentials.  

The CRA has a contextual alert placed on relevant webpages to inform Canadians that some taxpayers may have received a notification that their CRA user ID and password have been revoked. A link to a webpage with more information is also included in the alert.

CRA’s response

The CRA agrees with this recommendation.

The CRA already follows this best practice and requirement under the Directive on the Management of Communications.

Evidence of this best practice can be found on the CRA’s social media accounts.  

• Twitter (English)
• Twitter (French)
• Facebook (English)
• Facebook (French)
• LinkedIn (Bilingual)

CRA’s response

The CRA agrees with this recommendation.

Providing information to media outlets is one of many ways the CRA communicates issues that affect Canadians. The CRA also communicates to Canadians directly, publishes information on Canada.ca, posts on social media, etc.

When the CRA undertakes an initiative or issue and needs to communicate to Canadians in a timely manner, the CRA uses a number of mediums, including traditional media. The mediums used to communicate to Canadians may vary based on the issue or initiative that needs to be communicated, and the target audience we are trying to reach. Messaging used to reach media often has a different tone than messaging we use to communicate directly with taxpayers.

While the CRA endeavours to have the same information (or reasonable variation) available on all mediums/platforms at the same time, there are instances in which certain mediums are prioritized. For example, the CRA may prioritize responding to the media first, given the potential for broader reach than a Canada.ca webpage. Additionally, for issues in which the CRA does not have all the information immediately, media outlets may be prioritized as they allow us to  provide updates to their readership in real-time – meaning the CRA can provide piecemeal information as more details become available. Canada.ca is designed and functions differently, and doesn’t allow updates to be made at the same pace as with media. However, the same information (or reasonable variation) that was provided to the media can be posted on the Canada.ca website within 24 hours.

When the CRA revoked user IDs and passwords in March 2021, the CRA communicated to Canadians in a number of ways, including Canada.ca, the media, social media, and directly to impacted individuals.

CRA’s response

The CRA agrees with this recommendation.

The CRA has an Issues Management Directive that is an overarching policy, and while it does not describe specific processes, it does outline roles and responsibilities for the Issues Management community and senior management at CRA. The CRA’s Issues Management Directive states  “As soon as an issue is identified, a proactive (when possible), coordinated approach is required to ensure that it is quickly analyzed, reported, and addressed.”

With respect to the MyAccount Lockout situation, while an internal and unforeseen technical issue resulted in premature communications to taxpayers, as soon as the Agency’s issues management and public affairs teams were notified of the error, within only 24 hours CRA took an immediate and coordinated approach to ensure that the issue was investigated, reported and resolved. 

Current procedures for revoking access/credentials now includes a strategic communications approach (e.g., web content, reactive messaging, email notifications, social media / public outreach). In addition, corporate planning documents, calendars and weekly briefing with Branch heads at CRA now include oversight of planned outage and credential revocation dates in order to ensure that the Agency is prepared, and able to proactively respond to the “known unknowns”.

Issues management plans and / or approaches may be developed and tailored for circumstances with the possibility of significant negative impact on the Agency’s security, operations or reputation. To effectively and quickly address each issue, the CRA must be adaptable and, as a result, may not follow the same process for every single issue. In some instances, developing a formal issues management plan may not be feasible as it could delay getting crucial information to Canadians. 

Issues Management plans and / or approaches are leveraged in the event of a major incident involving or implicating the CRA, requiring a coordinated response from some or several CRA Branch heads.   

In addition to the Issues Management Directive, the CRA has policies and committees in place to address and guide the Agency and the Issues Management Network through an emerging or ongoing crisis and/or issue, including: 

• Issues Management Directive
• Business Continuity Plan
• Crisis Management Readiness framework
• Quick Response protocol, supported by communications
• Agency Operations Centre
• Incident Management Committee

The CRA successfully leveraged our risk and crisis management infrastructure and mechanisms to address COVID-19 and other events faced in 2020.

Appendix A: Public Affairs Branch Account Manager Model

Public Affairs Branch (PAB) Account Managers support the development of communications plans, products and activities in support of CRA priorities. PAB works to ensure a coordinated external and internal communications planning environment.

PAB Account Managers perform the following functions: 

• Provide a link to the issues management network;
• Work with media relations in the timely delivery of their activities, including proactive/reactive (issues management) activities
• Engage and collaborate with other government departments stakeholders, and partner organizations;
• Collaborate and provide direction involving Regions and Programs;
• Ensure work and resources are linked to priorities; and,
• Support the integration of internal communications into external communications plans (as required). 

All the Account Managers ensure that work is done in collaboration with the following centres of expertise:

CRA’s response

The CRA agrees with this recommendation.

The CRA recognizes the need for taxpayers to have timely access to their online account while ensuring the highest level of security and protection of confidential taxpayer information.

The CRA is implementing a new Digital Identity Validation (DIV) solution as an enhancement to the current registration process for CRA’s online services. This enhancement will enable taxpayers to validate their identify through a secure, online service and have immediate access to their personal and/or business information online.

The CRA will continue to identify opportunities to make it easier and faster for taxpayers to get secure access to their online account.

CRA’s response

The CRA agrees with this recommendation.

The CRA has established new partnerships and is developing new processes for taxpayers to be able to gain same-day access to their online account.

In support of the Pan-Canadian Trust Framework (PCTF), the CRA has established partnerships with the provinces of British Columbia and Alberta to be able to leverage their provincial digital ID’s. This allows for citizens to use their provincial credentials to gain same-day access to CRA’s online services. As provinces are the issuers of foundational documents (e.g., birth certificates, health cards, drivers’ licenses, etc.) with in-person services, they are well placed to identity proof individuals. The CRA is currently working with the Province of Quebec to explore the potential to offer a similar solution to residents of Quebec. As additional provinces and Territories establish digital identity programs, the CRA will explore partnerships with them.

On September 24th, 2022, the CRA and ESDC re-enabled the link between My Account and My Service Canada Account. This link allows users of one secure portal to get the other without having to re-login or revalidate their identity.

A new Digital Identity Validation (DIV) solution is also being introduced to make it faster for taxpayers to access their CRA account online. Taxpayers will be able to use a digital service to validate their identity and have secure and immediate access to their personal and business information online.

CRA’s response

The CRA agrees with this recommendation.

The CRA understands the importance of effectively communicating the interaction between COVID-19 benefits and provincial or territorial social assistance program. The CRA accepts this recommendation, and will modify existing communications to ensure language is clear and consistent with that which is used elsewhere by the Agency. We will also ensure to take this into account for future communications.

Concrete steps:

• The Public Affairs Branch has updated its communications strategy template to include a consideration about benefit interactions and the importance of clear language when communicating interactions to Canadians. This update will help ensure that benefit interactions are taken into account in the planning phase of any future strategies related to COVID-19 measures, and are incorporated into related external-facing products.
• Additionally, the CRA consulted ESDC (the relevant legislative entity) to update the CRA’s landing page for COVID-19 Benefits in accordance with OTO’s Recommendation 3 (see screenshot below), which will help ensure users are aware of the interaction between the one-time GIS payment and COVID-19 payments. From October 10 to November 8, 2022 the alert was active, and the link in the ‘Most requested’ area will be there indefinitely. The link goes directly to ESDC’s page “One-time grant for Guaranteed Income Supplement recipients who received pandemic benefits”.

CRA’s response

The CRA agrees with this recommendation, pending an analysis to determine the best location for these links.

The CRA agrees with the notion of including links to the Office of the Taxpayers’ Ombudsperson (OTO) landing page from some of the CRA’s pages, however it will conduct an analysis to determine the best locations for link placement to meet the goal of increasing the visibility of OTO.

The CRA will complete an analysis and publish the links on Canada.ca based on this analysis within 4 weeks of the OTO’s 20-21 Annual Report being tabled.

CRA’s response

The CRA agrees with this recommendation.

The CRA has already commenced steps for making Canadians aware they can complain or provide feedback about the service it provides to Canadians.

For example, text is already included in all paper tax packages, corresponding online PDF and html formats, and on various other CRA webpages.

The CRA will add a generic verse for raising awareness of complaint and feedback mechanisms as a standard verse in many different types of responses that are issued to taxpayers in December 2021.

The CRA will determine the best locations for links to meet the goal of increasing awareness of service feedback mechanisms at the CRA on other CRA webpages in December 2021.

CRA’s response

The CRA agrees in principle with this recommendation.

Current, clear, and accessible information should be made available to all Canadians. The technical information laid out for contact centre agents is not written for the general public, but rather those who have received the significant training to be a contact centre agent. As such, there is a risk that publishing such material could cause confusion.

The CRA continues to review and refresh information on the web in a manner that is accessible and understandable by Canadians.

As a matter of practice, the CRA optimizes web content based on analysis of top call drivers and agent reference material.

As part of an evergreen web optimization strategy, the CRA will continue to analyze call drivers and use them to steer proactive communications and web optimization projects, in order to help provide relief for known or anticipated call traffic.

CRA’s response

The CRA agrees with this recommendation.

The CRA already commenced steps in April 2021 for developing a way for people to securely submit documents electronically, without the need for them to access their CRA account.

For example on April 6, 2021, the CRA launched the Two-Way Communications pilot for two of its programs using the audit case management system. This service allows taxpayers/authorized representative(s) to send documents by email. Although email is not considered to be secure, if a taxpayer under audit cannot or chooses not to use their CRA account, they may use email to submit documents or other information to the CRA.

Since the launch of the pilot on April 6, 2021, additional programs were added to the service in July 2021 and expansion to other programs is expected to be completed between November 2021 and May 2022.

In addition, the CRA is reviewing the results of a Request for Information (RFI) issued late summer of 2021 to identify possible larger scale solutions for the organization to securely communicate back and forth with clients via digital means.

The CRA is continuing to explore new opportunities to accept documents from taxpayers electronically without accessing their accounts, while maintaining the integrity of CRA systems and taxpayer data.

The CRA is reviewing its processes to determine which types of documents can be submitted electronically safely outside the secure portals.

The CRA plans to continue to expand the usage of our portal services, with various phases of implementation slated for February 2022, and May 2022.

CRA’s response

The CRA agrees with this recommendation.

Development of a "scheduled callback" function in the telephone system is currently in the exploration phase.

It is important to note that the CRA Contact Centres do have a callback function which was introduced in early 2021. While it does require a call to initiate the callback request, there have been nearly 1.5 million successful call backs and caller feedback has been very positive.

The CRA will explore various options to provide assistance without having to call the CRA, such as online chat and scheduled callback. A proof of concept for online chat will be launched in December 2021 with further expansion in 2022.

CRA’s response

The CRA agrees with this recommendation in part.

The CRA does not believe that the inclusion of the Taxpayer Bill of Rights (TBR) in its policy framework as a fundamental component of the corporate policy suite would have the intended outcome since corporate policy is distinct from program policy (program policy consists of tax and benefits programs).

The CRA does however agree that assessing the existing uses of, and references to, the TBR on an ongoing basis is important to ensure that it is upheld. As the CRA continues to pursue its transformation, it will examine how best to embed the TBR into its culture change.

The CRA also agrees that when it creates or updates materials, and designs or redesigns its programs and services, that it is important to consider the relationship to, and any potential impact on the TBR. As a result, the CRA will explore the feasibility of developing a methodology or protocol to assess its products through a TBR lens.

CRA’s response

The CRA agrees with this recommendation in part.

While the CRA has decided not to rewrite existing materials, it does agree to examine how it can potentially take a phased approach to strengthen the TBR’s presence in the transformation and culture items going forward.

The CRA will also examine if the TBR can be embedded into the next phase of the change management plan for Agency transformation and the People First philosophy.

CRA’s response

The CRA agrees with this recommendation in part.

Please refer to the response provided for recommendation #1.

CRA’s response

The CRA agrees with this recommendation in principle.

The CRA’s Code of Integrity and Professional Conduct (Code) does not establish rules for employees to follow, but rather reflects rules, legislation, and specific expectations that have been established elsewhere in the Agency.

The CRA is nearing the completion of a scheduled 5 year comprehensive review of the Code. One of the proposed updates to the Code is a new reference to the TBR in the introduction as well as a link to the TBR webpage.

CRA’s response

The CRA agrees with this recommendation in principle.

The CRA agrees that providing learning opportunities related to the TBR would be beneficial and will explore options that support integrating learning on the TBR into products and learning programs that are accessed by all employees.

The CRA also agrees to evaluate the practicality of creating a separate mandatory course dedicated solely to the TBR.

The CRA will continue to seek opportunities to include information on the TBR in its learning products.

CRA’s response

The CRA agrees with this recommendation in part.

The CRA is unable to implement this recommendation to the extent suggested due to the scope of the TBR.

The TBR describes the treatment a taxpayer is entitled to when they deal with the CRA. The Community Volunteer Income Tax Program (CVITP) is a collaboration between the CRA and community organizations. Community organizations host tax preparation clinics across Canada and arrange for volunteers to prepare income tax and benefit returns for eligible individuals. When a taxpayer is dealing with a CVITP clinic, they are not dealing directly with the CRA. While the CVITP volunteers are not responsible for upholding the TBR, the CRA does agree that it would be beneficial for them to be aware of it.

Therefore, the CRA agrees to conduct a review of the training package for CVITP volunteers to see where it would be feasible to include mention of the TBR.

CRA’s response

The CRA agrees with this recommendation in part.

The CRA currently has an external webpage committed to information related to the TBR. This page is in the process of being updated to include the information noted in this recommendation. As a result, the CRA has determined that it would not be efficient to create a separate internal webpage containing the same information. Any hyperlinks added to internal products and webpages will point to the external TBR webpage.

As noted in the Ombudsman report, the CRA already makes linkages to the TBR in several of its corporate plans and reports, and will continue to do so. In addition, the CRA commits to the following actions:

• ensuring that as internal products and webpages are going through routine updates that they are reviewed for opportunities to link to and promote the TBR;
• ensuring that the process for developing new internal products and webpages includes identifying opportunities to incorporate information and linkages to the TBR.

In addition, the CRA will conduct a review of its existing internal products and webpages, where relevant, to identify opportunities to incorporate linkages to and promotion of the TBR.

CRA’s response

The CRA agrees with this recommendation in part.

In addition to the mandatory performance expectations set out by the CRA for its Executives (EXs) that include the mandatory commitments and corporate priorities on which they are expected to deliver, EXs have to list their key priorities relating to the programs, projects or services for which they are responsible along with associated performance measures that are applicable.

Since not all executives play a direct role in upholding the TBR in their area of responsibility, the CRA does not believe that it would be appropriate to create a mandatory performance expectation related to this requirement. However, the CRA has decided to add the TBR to the list of documents that EXs are asked to reference as they set out their deliverables and performance measures associated with key government priorities and documents relating to their area of responsibility.

CRA’s response

The CRA agrees with this recommendation in principle.

The CRA agrees that promoting the TBR and making it a more prominent fixture in its facilities would be an effective means of raising the awareness of its employees.

In achieving this goal and based on its experiences, the CRA believes that the most impactful placement for this type of information is not necessarily in public facing areas as recommended or in areas where there is a lot of transitory movement, such as entry ways, elevators, lobbies, etc. It has been noted that when information is placed in these types of areas, individuals will usually pass by without paying much attention to what is posted.

In addition, it is important to keep in mind that the CRA currently occupies 102 buildings nationally in one capacity or another. 38% of the buildings are Crown owned while 62% are leased (either space within the building or the entire building). There is an extensive process to request permission from landlords to post information in public facing areas, without a guarantee that permission will be granted. Based on past experiences and its commitment to sustainable development, the CRA will explore best practices that will allow it to make the best use of  available resources to pursue this option.

In addition, the CRA believes that a digital solution would be the most effective and efficient method of promoting the TBR. The CRA agrees to conduct an analysis of the digital options available for this purpose.

In the interim, the CRA will send an email to all of its employees which will include a copy of the TBR poster and a link to the TBR webpage.

This will complement the CRA’s existing initiatives to promote the TBR such as the annual communication on the TBR sent by the CRA’s Commissioner  and the posting of the TBR banner to the CRA’s login screen for employees for a week’s rotation.

CRA’s response

The CRA agrees with this recommendation.

The CRA currently reviews and updates the RC17 guide on a yearly basis, as needed, and will continue to do so moving forward.

In addition, the CRA commits to a complete review and update of this guide in order to ensure that its contents reflect the new TBR webpage currently under development.

CRA’s response

The CRA agrees with this recommendation.

The CRA already has an existing webpage with information on the TBR and is currently working on a redesign and update of its contents to include more detailed information on each right and commitment to small business. The redesigned webpage will provide a more interactive experience for users.

While this work is close to completion, the CRA acknowledges that there is merit to adopting the suggestions made in this recommendation. The CRA will extend the work to ensure that the completed webpage includes more comprehensive information that will allow for a more practical understanding of each right and commitment.

CRA’s response

The CRA agrees with this recommendation in part.

The CRA has made a commitment to "Making information more helpful and easier to understand" as part of its People First campaign. This commitment includes the following statement:

"The Taxpayer Bill of Rights states that every Canadian has the right to complete, accurate, clear, and timely information that explains the laws and policies that apply to their unique situation."

The CRA is already working to include its People First messaging in all of its external communications products, where appropriate.

In addition, the CRA will conduct a review of its external webpages and public facing products to determine if there are relevant opportunities to promote the TBR.

CRA’s response

The CRA agrees with this recommendation in principle.

The CRA will conduct a review of its main external webpages to determine if and where it would be appropriate to include a reference to the TBR and/or a hyperlink to the new TBR webpage.

CRA’s response

The CRA agrees with this recommendation in principle.

The CRA agrees that reporting on how its service improvements align with the TBR would be a positive step in the right direction, and as it pursues its Agency transformation, the CRA will explore if it is feasible to communicate on how its progress aligns with taxpayer rights, where applicable, particularly in its corporate documents.

Since the CRA follows up on the commitments it makes in its action plans on a yearly basis, it will examine the possibility of using this process as a means of tracking its progress with respect to its commitments related to the TBR.

CRA’s response

The CRA is in agreement with the overall recommendation to continue to remove barriers to the use of the CVITP.

The CRA recognizes the importance of the CVITP and has taken many steps to reduce and/or remove barriers to those wanting to access the program.

For example:

• The number of walk-in and mobile clinics increased by 600 (95.5%) between the 2017-2018 and 2018-2019 fiscal years. Increased take up is expected to continue beyond 2020.
• The CRA has expanded the online services available to volunteers and organizations with the addition of the Auto-Fill My Return (AFR) feature, and will continue to explore opportunities to support more online services where appropriate in the future.
• New partnerships have been developed with professional associations and community organizations, resulting in continued growth of the program.

A key consideration when exploring the feasibility of expanding services is the protection of client information.  CVITP volunteers do not have the ability to access taxpayer information via CRA systems in order to validate the taxpayer’s identify.  As a result, it is not possible for volunteers to provide assistance by phone.  The CRA is not prepared to change its position in this regard and will not pursue this aspect of the recommendation further.

The following actions have been taken or are underway and will be in place by December 2020, in advance of the next tax filing season:

• Updating training modules for CVITP volunteers. Existing training modules will be refreshed and new modules created to provide additional information on the following topics:
  • The need for EFILE returns to be transmitted within 48 hours;
  • Targeted situations such as the handling of tax exempt income for Indigenous peoples and;
  • Information on the CVITP program overall.
• An increase in program-dedicated staff in both Headquarters and the regions.
  • This expansion includes additional "year-round" tax clinics and more outreach activities to vulnerable population segments including Indigenous peoples, newcomers and refugees, seniors, youth, persons with disabilities, modest income Canadians, and homeless and housing insecure individuals.
  • Increased CRA support in the solicitation of volunteers, to allow organizations and clinics to, at their discretion, provide year-round, tailored and ongoing support to and training of partner organizations and volunteers to enable the filing of returns.
• Improved training for phone agents responding to calls on the dedicated CVITP line to ensure that "exception type" situations are appropriately addressed.

CRA’s response

The CRA agrees with the overall recommendation to provide increased support to clients who access the CVITP.

The CVITP has been designed as a partnership with community organizations and their volunteers. The role of the program is one of support and guidance (i.e. providing training, tax software, promotional products, hardware (through the computer donation program), a dedicated telephone line for CVITP volunteers, and support from local CVITP coordinators. The role of community organizations is to organize and manage tax preparation clinics (i.e. recruit volunteers, establish 'office hours', etc.) and arrange for their volunteers to prepare the returns.

The CRA has improved training material on existing tax scenarios which include different types of income and has added new tax scenarios for the 2020 Filing Season. The CRA plans to consult with partner organizations and volunteers after the filing season to obtain feedback and identify any gaps.

The CVITP provides organizations with recommended guidelines to assist taxpayers with modest incomes and simple tax situations, but the program does not limit the types of returns that can be filed, this is left to the discretion of the volunteers.

The CRA confirms that the thresholds are suggested income levels only and the organizations can increase them at their discretion. The CRA recognizes however, that in some cases, increasing the thresholds could have an adverse impact on the clinic’s capacity to serve those most in need.

The CRA will provide increased support in the solicitation of volunteers to allow organizations and clinics to, at their discretion, adjust the accepted income thresholds which will allow clinics to assist even more Canadians in filing their taxes.

The CVITP will explore opportunities to increase awareness of the review and verification process and will investigate the support needed to enable clinics to assist clients under review by December 2020.

As a result of increased funding, the CRA will continue to expand the program, thereby helping thousands more individuals complete their taxes and access benefits to which they are entitled. This will be accomplished through an increase in program-dedicated staff in both Headquarters and the regions. This expansion includes additional "year-round" tax clinics and more outreach activities to vulnerable population segments including Indigenous peoples, newcomers and refugees, seniors, youth, persons with disabilities, modest income Canadians, and homeless and housing insecure individuals.

CRA’s response

The CRA agrees with this recommendation.

The ultimate goal of the CVITP is to help as many people as possible.

To further this goal, the CRA:

• Conducted annual surveys over the past two years with organizations and volunteers to assess the program effectiveness and impacts of new CRA initiatives, such as Auto-fill my return.
• Recently created the Strategic Partnerships Section in order to consult with, and add to its list of existing stakeholders which includes other government departments and non-government organization in an effort to expand the program’s reach to vulnerable populations. The section maintains partnerships through regular engagement with organizations through Headquarters and in collaboration with the regions.
• Developed business intelligence tools to provide information on where to target efforts to increase CVITP coverage in geographical areas where there are gaps in service to segments of the population, such as a tool which allows users to target grouped taxpayers by:
  • Income types such as, employment income, old age security, pension income, social assistance, and workers compensation;
  • Grouped levels of income;
  • Number of benefit recipients.

The CRA will continue to invest in research and development as well as continue to leverage its business intelligence tools to better target its efforts to deliver services to vulnerable populations, and where possible, in a cohesive manner with other government departments and agencies.

CRA’s response

The CRA agrees with this recommendation.

The CRA leverages a multitude of formats to communicate and promote the CVITP. It communicates changes to the CVITP as well as changes affecting the program through biweekly regional teleconferences, an annual Community Outreach and Support Division conference, Wiki discussion boards, social media (Twitter, LinkedIn, Facebook, YouTube), promo cards, and posters.

The CRA developed a web-based training product and will ensure that all changes affecting CVITP organizations and volunteers are incorporated in a timely manner.

The CRA will continue to leverage its existing networks and processes as well as work with its communications team to identify opportunities to expand its reach.

CRA’s response

The CRA agrees with this recommendation.

The CRA strives to improve the quality and consistency of service to Canadians nationally. It actively promotes the sharing and implementation of best practices by its program coordinators through internal communication vehicles such as biweekly regional teleconferences, the annual Community Outreach and Support Division conference, and Wiki discussion boards accessible to CVITP staff nationwide.

The CRA’s overhauled training product and improved communication mechanisms such as, increased use of the Wiki system to provide updates from headquarters to the regions and a streamlined functional structure within headquarters, will help to facilitate the timely education of volunteers with regards to changes in tax policy and/or processing that may impact program clients.

In addition to the initiatives already identified and currently in place, the CRA will continue to leverage its existing networks and processes to identify opportunities to improve communication with volunteers.

CRA’s response

The CRA agrees with this recommendation.

In February 2019, the CRA opened three northern service centres in Whitehorse, Yellowknife, and Iqaluit to provide increased tax support to individuals and businesses throughout the territories year-round. This was in response to feedback received through the CRA’s Serving You Better consultations and as a result of recent research on barriers to tax filing. CRA employees in these centres are working to increase the awareness of benefits and credits among territorial residents, expand the CVITP, and help businesses meet their tax obligations.

The CRA has recently restructured functional operations to place an increased focus on national partnerships and increased regional resources to ensure that organizations receive support to offer year-round tax clinics. Building new national partnerships, will contribute to the recruitment of additional volunteers as well as organizations offering tax clinics. The CRA will develop a strategy to articulate these steps by September 2020. In addition, the CRA is committed to increasing volunteer retention and recruitment by utilizing business intelligence to identify areas of greatest need, where gaps exist in terms of eligible tax filers, and where there is a requirement for additional tax clinics.

The CRA will explore the feasibility of seeking financial authorities to pursue grants and contributions that could further help organizations in their retention and recruitment of volunteers.

The CRA has also improved outreach and CVITP products by developing products in a number of third languages, updating products and new materials to demystify the CVITP for potential volunteers, and organizations to draw more people into the program.

CRA’s response

The CRA agrees with this recommendation.

The CRA will expand its partnerships by focusing on new opportunities for expansion with other federal government departments and tax practitioner associations.

The CRA recently created the Strategic Partnerships Section to work collaboratively with other government departments and non-government organizations, to expand the reach of the CVITP to vulnerable populations. The section also maintains and will be expanding upon partnerships through regular engagement with organizations through CRA headquarters and in collaboration with the regions. The CRA has already begun this work and will continue to build on these steps.

CRA’s response

The CRA agrees with this recommendation.

The CRA currently provides all of its registered volunteers with available clinics based on geographical location.

The CRA agrees to provide assistance to organizations in identifying nearby existing clinics which could partner together by utilizing business intelligence data. The CRA also agrees to explore other mechanisms to match clients with clinics and volunteers. The CRA will work to have new solutions in place by December 2020, in advance of the next tax filing season.

CRA’s response

The CRA agrees with this recommendation.

The CRA strives to improve the quality and consistency of service to Canadians nationally. It actively promotes the sharing and implementation of best practices by its program coordinators through internal communication vehicles such as biweekly regional teleconferences, the annual Community Outreach and Support Division conference, and Wiki discussion boards accessible to CVITP staff nationwide.

At a recent national program meeting, concrete protocols for communicating between Headquarters and the regions were established and agreed upon. These protocols will ensure timely and consistent messages are shared throughout the program nation-wide, and at all levels. The CRA will ensure that these newly established communication protocols are followed and adhered to.

CRA’s response

The CRA agrees with the overall recommendation to provide increased support to the CVITP organizations.

Due to an increase in funding, the CRA will be able to continue to expand the program, thereby helping thousands more individuals complete their taxes and access benefits to which they are entitled.

This is currently being accomplished through an increase in program-dedicated staff in both Headquarters and the regions which will result in additional support being provided to organizations. The CRA’s efforts have achieved positive results in 2019, with new volunteer training products being developed, a 13.3% increase in participating organizations, and an 8.5% increase in the number of participating volunteers. The number of individuals helped also increased by 5.3% which represents nearly 40,000 more taxpayers assisted by the program, thus enabling them to access the benefits and credits to which they are entitled.

Please also see response to recommendation #11.

CRA’s response

The CRA agrees with the overall recommendation to provide increased support to the CVITP organizations.

The CRA does not currently have the financial authority to provide funding to community organizations and their volunteers, however it does provide various other resources and support to partner organizations and volunteers such as, training, tax preparation software, promotional products, hardware (for example, through the computer donation program), a dedicated telephone line for CVITP volunteers, and support from local CVITP coordinators.

The CRA will explore the feasibility of seeking financial authorities to pursue grants and contributions that could further help organizations in their retention and recruitment of volunteers.

CRA’s response

The CRA agrees with this recommendation.

The CRA agrees that simplifying the registration process could ease the burden while increasing the number of volunteers by the next tax filing season. The CRA will streamline the online application process for volunteers and will continue to explore ways of simplifying the registration process for volunteers while ensuring the protection of taxpayer information.

CRA’s response

The CRA does not agree with this recommendation.

When an individual files more than one return with the CRA, the returns are processed in order (by tax year) to ensure that any applicable refund or balance owing reflects all of the returns being processed and that amounts that have carryover implications, such as losses and certain credits, are applied correctly.  Processing the current year return first could result in undue hardship for the taxpayer as a refund for a current year return may have to be subsequently repaid if a prior year return results in a debt to the taxpayer’s account. As a result, the CRA will not pursue this recommendation further.

The CRA will however, update training material and its "What’s new" messaging to explain the rationale for multi-year processing timelines and encourage that this explanation be shared with taxpayers and their representatives as applicable by the next tax filing season.

CRA’s response

The CRA agrees with this recommendation.

The CRA confirms that organizations participating in the CVITP can order any form or publication and do not have limits placed on the number that they can order. Confusion regarding limits to the number of forms that can be ordered stems from attempts by organizations to order forms via the online portal that is available to the general public.

The CRA will communicate this distinction to participating organizations via a communiqué to the regions, which will then be passed on to the organizations by Fall 2020.

CRA’s response

The CRA agrees with this recommendation.

In 2019, the CRA reviewed the training material offered to volunteers and completed a learning needs analysis in collaboration with regional representatives, organizations, and volunteers to determine training gaps and develop new material. The CRA now offers enhanced web-based training on specific topics and frequently seen client scenarios. 

In addition to the new training material, the CRA will refresh existing training modules and create new modules to address the following topics:

• The need for EFILE returns to be transmitted within 48 hours;
• Targeted situations such as, the handling of tax exempt income for Indigenous peoples and;
• Information on the CVITP program overall.

The CRA will continue to work collaboratively with partner organizations and volunteers to address their needs. The CRA will also explore the feasibility of reviewing in-person training provided to them.

CRA’s response

The CRA partially agrees with this recommendation.

This recommendation pertains to the theme of service standards and the CRA has provided an overarching response on this theme.

The CRA is committed to processing tax returns with all due dispatch. Its service standards publicly state the level of performance that citizens can reasonably expect to encounter from the CRA under normal circumstances. These results are published annually. It should be noted that late filed returns are not considered to fall within normal circumstances and is usually representative of tax filers who have not met their obligations under the ITA. As a result, the CRA does not agree with the recommendation.

The CRA will however assess the feasibility of establishing a service standard for complex adjustment requests by December 2020.

CRA’s response

The CRA partially agrees with this recommendation.

This recommendation pertains to the theme of service standards. Please see the CRA’s overarching response on this theme.

The CRA conducts a review of its service standards annually, including the standards related to the processing of T1 returns. The CRA is committed to continuing to undertake these annual reviews to ensure clarity, transparency, and consistency of the language used in the description of standards.

The CRA further indicates that as part of this process, it will review the assessing and reassessment service standards to ensure the language is consistent. This review will be completed by December 2020.

CRA’s response

The CRA partially agrees with this recommendation.

This recommendation pertains to the theme of service standards. Please see the CRA's overarching response on this theme.

The CRA indicates that the service standard for verbal adjustment requests is included in the overall service standard for T1 adjustment requests received via paper. It is important to note that there are fewer than 40,000 verbal adjustments per year with an expectation that this number will decrease further as a result of self-service options available to Canadians. The CRA will not establish a separate service standard for verbal adjustments requests

As part of its annual review, the CRA commits to reviewing the wording of the T1 Adjustments service standard to ensure that requests received via telephone are clearly outlined. This is expected to be completed by December 2020.

CRA’s response

The CRA partially agrees with this recommendation.

This recommendation pertains to the theme of exception processing and the CRA has provided an overarching response on this theme.

The CRA agrees to make available more information on processing timeframes, by type of processing workflow.

A tool (Check CRA Processing Times) was made available on the CRA’s Canada.ca website beginning in December 2019. The next phase will be a progress tracker for account specific enquiries that will be in the CRA secure portals starting in May 2021. This tool will inform taxpayers or their representative when a file was received and its status in the processing cycle.

CRA’s response

The CRA partially agrees with this recommendation.

This recommendation pertains to the theme of service standards. Please see the CRA’s overarching response on this theme.

The CRA currently reports on its digitally-filed and paper-filed T1 returns and digitally-file and paper-filed adjustment requests separately against each service standard. The service standard for verbal adjustment requests is already included in the overall service standard for T1 adjustment requests received via paper. As a result, the CRA does not agree with the recommendation to establish a separate service standard for verbal adjustments requests.

As part of its annual review, the CRA commits to reviewing the wording of the T1 Adjustments service standard to ensure that requests received via telephone are clearly outlined. This is expected to be completed by December 2020.

CRA’s response

The CRA partially agrees with this recommendation.

This recommendation pertains to the theme of service standards. Please see the CRA’s overarching response on this theme.

The CRA has taken steps to ensure that the specific period of time associated with the reported results for the T1 assessing service standards is clearly described beginning with the 2018-19 performance results.

CRA’s response

The CRA partially agrees with this recommendation.

This recommendation pertains to the theme of exception processing. Please see the CRA’s overarching response on this theme.

The CRA agrees that taxpayers should be informed with respect to the status of their files.

A tool (Check CRA Processing Times) was made available on the CRA’s Canada.ca website beginning in December 2019. The next phase will be a progress tracker for account specific enquiries that will be in the CRA secure portals starting in May 2021. This phase of the solution will enable taxpayers to track the progress of their request through the CRA secure portals (My Account, My Business Account). This tool will inform taxpayers or their representative when a file was received and its status in the processing cycle.

The CRA will monitor the success of this new tool and determine if further enhancements, such as letters, should also be considered.

CRA’s response

The CRA partially agrees with this recommendation.

This recommendation pertains to the theme of exception processing. Please see the CRA’s overarching response on this theme.

As noted in the response to recommendation #1, in the event that the CRA is able to establish a service standard for complex adjustments, it will  provide taxpayers with the timeframe within which they can reasonably expect their T1 adjustment request to be completed into outgoing acknowledgment letters.

CRA’s response

The CRA partially agrees with this recommendation.

This recommendation pertains to the theme of timeliness of processing. Please see the CRA’s overarching response on this theme.

The first-in, first out method is predominantly used by the CRA in order to maintain fairness and efficiency in processing. The CRA also takes steps to recognize the importance of the issuance of benefits.  As a result, the CRA does not agree with the recommendation to change its first-in, first-out policy.

CRA’s response

The CRA partially agrees with this recommendation.

This recommendation pertains to the theme of timeliness of processing. Please see the CRA’s overarching response on this theme.

The CRA agrees to continually monitor and analyze trends with respect to all tax returns, identifying areas in the process that require improvements to ensure returns are processed as expeditiously as possible.

CRA’s response

The CRA partially agrees with this recommendation.

This recommendation pertains to the theme of timeliness of processing. Please see the CRA’s overarching response on this theme.

The CRA agrees to continue to monitor and analyze trends with respect to all tax returns identifying areas in the process that require improvements to ensure returns are processed as expeditiously as possible.

It should be noted that the vast majority of returns filed are already processed in a timely and expedient manner. For example, during the 2019 filing season, the service standard for assessing T1 returns was met over 97% of the time (97.2% for digital returns and 97.4% for paper returns).

As the CRA must respond to numerous pressures regarding its services and programs, a thorough process exists so as to allocate funding to programs across a wide range of activities, and new funding may be requested via the Federal Budget. The CRA regularly reviews the program to determine the appropriate resource allocations.

CRA’s response

The CRA partially agrees with this recommendation.

This recommendation pertains to the theme of exception processing. Please see the CRA’s overarching response on this theme.

The CRA agrees that taxpayers should be informed with respect to the status of their files, and when possible, call centre agent provide filers information on the status of their files.

The CRA has already taken steps to ensure agents have access to information and tools, in order to provide the status of taxpayer files. In May 2021, the second phase of progress tracker will enable taxpayers to track the progress of their request through the CRA secure portals (My Account, My Business Account). This tool will inform taxpayers or their representative when a file was received and its status in the processing cycle.

The CRA will monitor the effectiveness of this service and determine if it meets the needs of Canadians, and determine if and how this information can be used by call centre agents.

Overarching responses

#1

Service standards theme

The CRA is responsible for the administration of the Income Tax Act (ITA) and related legislation, as well as benefit and tax credit programs on behalf of the federal, provincial, territorial, and First Nations governments. Over 29 million tax returns are received each year, with 25 million filed between mid-February and April 30th. The CRA strives to process all of these returns in an efficient manner and has made significant improvements over the last several years. For example, the CRA met the service standard over 97% of the time (97.2% for digital returns and 97.4% for paper returns).

Service standards publicly state the level of performance that citizens can reasonably expect to encounter from the CRA under normal circumstances. The CRA sets targets for achieving each service standard based on operational realities, infrastructure, available resources, historical performance, degree of complexity of the work, and expectations of Canadians.

While the majority of returns are processed within standard, there are exceptions that occur during the short timeframe of the filing season. For example, returns that have inaccurate or missing information can naturally result in delays. The ITA is complex and occasionally necessitates longer manual processing for some types of tax returns. Small volumes of each situation means the CRA’s system cannot be cost-effectively programmed to assess these returns without creating an unacceptable risk to the system’s integrity.

Furthermore, the CRA’s mandate includes ensuring that Canada’s self-assessment tax system is sustained. The CRA’s review activities promote awareness of and compliance with the laws it administers and plays an important role in maintaining the integrity of, and the Canadian public’s confidence in the tax system. To this end, the CRA continues to audit, verify and match during the filing period which results in a small percentage of returns taking longer to finalize.

Despite these realities, the CRA’s efforts to improve service as mentioned above have facilitated annual changes to the returns processing standards allowing more transparency and clarity for both citizens and non-residents. This process is ongoing, the CRA regularly revises its service standards to make sure that they are up-to-date and relevant.

# 2

Timeliness of processing theme

Historical results illustrate that the vast majority of files are processed within the timeframes identified in the CRA’s service standards. Given the short period of the filing season, combined with operational realities such as infrastructure, available resources, and the complexity of the ITA, the service standards represent a level of performance that the majority of citizens can rely upon.

The CRA acknowledges that it experienced some transitional difficulties with the introduction of the first major phase of its technological renewal in February 2016, resulting in higher than normal inventories. In November 2016, Service Renewal consolidated the workload from seven to three Tax Centres (TCs) which required the TCs to hire and train large numbers of new employees. The resulting learning curve and impact on productivity took some time to diminish. These changes were necessary to modernize both the CRA’s systems and operations and the past filing season saw substantial improvements in processing timeframes.

The CRA is committed to being a fair, helpful, and responsive tax administration with a client-centric focus. Its commitment to service excellence in this regard has resulted in a number of filing improvements over the last few years. This includes sharing data on information slips via the AutoFill my Return service, simplifying the completion of returns on behalf of certain fixed-income Canadians, real-time tax return processing, improved ability to track files through each stage, more up-front validation of reported income, and immediate availability of notices of assessment. Many of these initiatives have stemmed from both increases in digital filing and a major technological investment that will see the complete redesign of the returns processing foundation.

Technological improvements are ongoing and the renewal of the processing framework for individual returns will be completed in 2020. Utilizing this foundation, the CRA will be continuing the modernization of its service offerings such as increasing the types of tax returns that can be electronically filed, decreasing the volume of returns that necessitate human intervention, and vastly improving processing times for those returns that require manual (re)assessments.

# 3

Exception processing theme

As indicated by the CRA’s year-over-year results, the majority of tax returns and reassessments are processed expeditiously. Small volumes do need to be diverted from the normal flow due to errors, omissions, validation activities, or technical complexities. The timeframes involved in each type of situation are very difficult to accurately predict since there are many variables including the time needed for taxpayers to correct information or provide documentation, as well as the effort required by various areas within the CRA that must utilize specific expertise, to finalize complex files.

The CRA is making improvements to assist taxpayers in better understanding the time needed to complete their files. The first step is to improve the information available on the Canada.ca website by implementing a tool that will provide taxpayers with general processing times for a range of CRA services and an indication of when they might be able to expect a response. In addition, a progress tracker for account specific enquiries will be available in the secure portals beginning in May 2021, that will let taxpayers or their representative know when a file was received, as well as its status during the processing cycle. This same information is already available to call centre agents and is communicated to taxpayers when requested.

CRA’s response

The CRA agrees that this recommendation has merit, and will conduct a review to better evaluate the most appropriate and beneficial approach.

As noted in the report, the CRA currently provides a payment arrangement confirmation letter to taxpayers upon request. It is the understanding of the CRA that not all taxpayers or their representatives want a confirmation letter. Therefore, before determining whether a letter should be sent to all taxpayers or representatives who make a payment arrangement, the CRA will undertake to further review this option to better understand taxpayers’ preference and will conduct a cost/benefit analysis of this proposal. The review will be completed by December 2019.

In the meantime, the CRA will update its current procedures to allow for an active offer of service. This means that the CRA will give taxpayers the option of whether they would like a payment arrangement confirmation letter or not at the time that the arrangement is made. This change will be implemented by the end of March 2019.

CRA’s response

The CRA agrees with the recommendation.

The CRA, on an ongoing basis, reviews its collection policies to ensure they align with the Taxpayer Bill of Rights.

CRA’s response

The CRA concurs with this recommendation.

CRA’s response

The CRA concurs with the recommendation.

CRA’s response

The CRA concurs with the recommendation.

CRA’s response

The CRA accepts this recommendation in principle, pending an analysis of its feasibility.

CRA’s response

The CRA accepts this recommendation. The CRA already commenced steps in 2014 for maintaining nation-wide consistency in processing times for relief requests related to the cancellation of penalties and interest.

CRA’s response

The CRA accepts this recommendation. The CRA has already identified the factors that contribute to fluctuations in the number of taxpayer relief requests and is aware of the impact they have on the program.

CRA’s response

The CRA recognizes the importance of the Taxpayer Relief Program. As the CRA must respond to many pressures regarding its services and programs, there is a thorough process to allocate funding to programs across a wide range of activities, and new funding may be requested via the Federal Budget. The program is currently exceeding its publicly stated service standard.

CRA’s response

The CRA agrees in principle with the recommendation and will conduct a pilot prior to making a final decision regarding full implementation.

CRA’s response

The CRA accepts this recommendation.

CRA’s response

The CRA accepts this recommendation.

CRA’s response

The CRA accepts this recommendation.

CRA’s response

The CRA accepts this recommendation.