CRA REPORT TO PARLIAMENT
In early 2016, CRA released its 2014-2015 Annual Report to Parliament. The Report includes the following selected statistics and comments:
- 305,667 individual returns were reviewed. 28.8 million returns were filed for the 2014 year. (Approximately 1% of returns were reviewed.)
- $469 billion in taxes and duties were processed, $255 billion was collected through source deductions.
- 135 benefit and credit programs are administered on behalf of provinces, territories and federal government.
- 85% of individual callers succeeded in reaching the CRA telephone service (during tax season).
- $1 billion in additional taxes were assessed by verifying claims for errors.
- 6,392 responses were made to online business enquiries.
- The ratio of average dollar value assessed for targeted vs. random reviews is 2.54:1.
- Underground economy specialist teams are established in 20 cities across Canada. 6,540 income tax and GST/HST underground economy files were audited.
- Over the past 5 years that CRA has sent letters to taxpayers within groups at risk of non-compliance (usually 30,000+ letters sent out each year) the total fiscal impact is estimated to be $11.3 million.
- 70,421 GST/HST audits were completed.
- 6 point-of-sale audits (GST/HST and income tax) were completed.
- 24,302 SR&ED claims were processed and resulted in $3.1 billion in tax assistance.
why CRA selected the client for audit
- 76% of risk-assessed audit activities resulted in detection of non-compliance by individuals and corporations.
- Over 585,361 payroll accounts were reviewed and 744 employer compliance audits were completed.
- CRA is implementing an automated system to track and resolve debts within the newly imposed time limit and launched the first elements of the system in February 2015. It includes a central debt expiry calculator which calculates the limitation period on outstanding tax debts to help make sure CRA only takes collection actions on legally enforceable accounts.
- 90,059 income and commodity tax disputes were resolved.
- Following implementation the previous year of a national workload management strategy for low‐complexity files, in 2014‐2015 CRA nationalized the medium‐complexity workload with positive results. The average age of the inventory of regular small and medium enterprise objections was reduced by 7% from 2013‐2014.
some settlement possibilities for tax shelters
- Results of the Tax Avoidance Group (TAG) workload in the 2014‐2015 period include resolving 25,462 disputes and completing steps toward finalizing an additional 66,474 files. Pending reassessments for taxpayers who accepted dispute resolution offers will account for 18,332 of these files. Approximately 5,000 settlement offers relating to donation tax shelters will go out in 2015‐2016.
- CRA received 2,628 CPP/EI disputes and resolved 2,576.
- Taxpayers claiming a credit for foreign taxes paid said they were not aware their claims needed to be supported by an official, certified translation. As a result, CRA updated its webpages and letters to taxpayers to clarify what is meant by an official translation.
- 95.9% of taxpayer service complaints were resolved within 30 business days.
- Mechanisms are in place to monitor CRA employee accesses to taxpayer information and ensure it is used only for its intended purposes.