CRA Annual Report to Parliament 2011-2012 (PDF - Agence du ...

2. Collective bargaining
As part of the 2010 Federal Budget, the Government announced a freeze on the operating budgets of departments and
agencies up to and including 2012-2013. As a result, no incremental central funding is being provided to organizations for
the cost of wage increases that take effect between April 1, 2010 and March 31, 2013.
In fiscal year 2011-2012, the funding shortfall associated with these wage increases amounted to approximately $48.0
million. The CRA managed this operating pressure with internal funding from general administrative and program
efficiencies identified through a targeted program spending review.
3. CRA’s financial management
The CRA employs a multi-year resource management strategy by utilizing its two-year spending authority to better position
itself in future years to address known pressures and / or respond quickly to unforeseen and extraordinary operating
pressures. In 2011-2012 the total appropriations available for future years was $248.3 million. While this was higher than prior
years, it was due in large part to plans to re-profile funds to 2012-2013 in order to mitigate the impacts of the operating
budget freeze.
As part of its resource management strategy, the CRA continuously reviews and revises plans and priorities to ensure the
effective use of government resources and the achievement of our core business outcomes. In 2011-12, the majority of key
performance targets were met or exceeded.
4. Provincial sales tax administration reform
On July 1, 2010, the CRA implemented the harmonized sales tax (HST) in the provinces of Ontario and British Columbia. The
CRA received funding in 2011-2012 of $137.8 million (including employee benefit plan contributions and accommodation
charges) for the continued implementation and administration of the HST in both provinces. This funding was used to
transition affected provincial employees to the CRA, identify and address risk of HST non-compliance, and administer
province-specific HST flexibilities in Ontario and British Columbia. Since that time, the province of British Columbia has
confirmed it will return to the provincial sales tax model effective April 1, 2013. In addition, on April 18, 2012, the province of
Prince Edward Island announced that it will transition to the HST effective April 1, 2013. Adjustments to the CRA funding
associated with these announcements will be reflected in future years, as necessary.
ANNUAL REPORT
2011-2012
CANADA REVENUE AGENCY