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

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to 2.3% of Gross Domestic Product in 2009, which was down from 2.9% in 1992. This type of non-compliance is complex, so it is important for revenue administrations to share details about different approaches and experiences, successful or not, in dealing with these issues. The CRA continues to work with Canadian and international partners through research, information-sharing, communication, education, and compliance activities to reduce participation in the underground economy. The CRA led the task group that produced the ‘Reducing opportunities for tax non-compliance in the underground economy’ report for the OECD Forum on Tax Administration. The report was prepared to help revenue administrations advance their thinking and practices about identifying and handling risks related to the underground economy and electronic payment systems, and to promote discussion and knowledge-sharing on these important issues. In 2011-2012, we audited 10,627 underground economy files. 80% of the files audited resulted in a tax assessment. These audits identified $513 million of unreported income with an associated fiscal impact of $260 million. [enforcement] The Enforcement program undertakes audits and criminal investigations of those suspected of deriving income from criminal activities and of those who evade taxes. 5 For more information about Statistics Canada's report, Estimating the Underground Economy in Canada, 1992-2009, go to www.statcan.gc.ca/dai-quo/index-eng.htm. ANNUAL REPORT 2011-2012 CANADA REVENUE AGENCY The CRA addresses these cases of deliberate fraud and in some instances refers cases to the Public Prosecution Service of Canada. Taxpayers may face penalties, court fines, and up to five years in prison. In 2011-2012, the program conducted 819 enforcement audits that resulted in finding $67.4 million of additional taxes owing. A total of 137 taxpayers were convicted of tax evasion or fraud, and 24 individuals received prison sentences. Indicators 2010-2011 2011-2012 Change Enforcement audits completed 834 819 -1.8% Referrals to PPSC 129 120 -7.0% Enforcement actions (including investigations) 3,388 2,820 -16.8% Public Prosecution Service of Canada conviction rate did you know? The CRA also collects other debts on behalf of federal departments. We collected over $590 million this past year. 100% 95.4% -4.6% The courts imposed $6.4 million in fines and 36 years of jail sentences. In addition, 120 income tax and GST/HST investigations were referred to the Public Prosecution Service this past year. Some results are lower than those of previous years because the files are more complex and require more resources to complete. We issue news releases about convictions on tax evasion to local, regional, and national media to demonstrate that there are consequences to non-compliance and to help maintain public confidence in the integrity of Canada’s self-assessment system. In 2011-2012, the CRA distributed 175 news releases on convictions to generate articles and broadcast news topics.
[payment of tax debt] The final step in our compliance review process is to ensure that taxpayers pay any amounts due. An effective debt resolution program is a critical element in addressing non-compliance and protecting Canada’s revenue base. Indicators 2010-2011 2011-2012 Change Gross receipts and receivables ($ billion) $388 $419 7.3% Inventory less than one year old / gross receipts and receivables 2.8% 1.8% -1.0% We processed approximately $419 billion in taxes and duties last year. Of this amount, more than $411 billion was received within the 2011-2012 reporting period. Our receivables inventory that is less than one year old is $7.5 billion or about 1.8% of the gross receipts. Over the past five years, our data indicates that most individuals and businesses pay their taxes on time, which continues to surpass our 90% target. When taxpayers have not met their obligations, we use a range of enforcement actions with varying degrees of intervention. It has been determined that our ability to collect a debt depends on both timely and efficient debt collection, as the longer the debt exists, the harder and more expensive it is to collect. We rely on approaches that favour swift actions, such as our Debt Management Call Centre, which addresses high-volume, low-risk tax debt at minimal cost, and allows our collection agents in tax services office across Canada to focus on addressing more complex and higher-risk accounts. Indicator 2010-2011 2011-2012 Change Individuals who paid their reported taxes on time 94.3% 93.9% -0.4% Percentage of payable corporations taxes paid on time 93.5% 89.7% -3.8% CANADA REVENUE AGENCY 33 We continue to pursue more risk-responsive enforcement approaches to address non-compliance in our Accounts Receivable programs. We continue to update our strategies to respond to newer workloads and to increase our efficiency. Initiatives such as the Accounts Receivable National Inventory model, introduced in April 2011, and the professional sector pilot project aim to make our inventory management process more efficient. This past year, our tax services office agents resolved 61.6% of this new debt within the year of intake, surpassing our objective of 60%. The $18.4 billion tax debt we resolved in our tax services offices represents 94% of the dollar value of the intake of new debt in the past year. Indicator 2010-2011 2011-2012 Change Resolution of tax debt – Automated and call centres ($ billion) $16.4 $21.6 31.7% Resolution of tax debt – Tax service offices ($ billion) Resolution of tax debt – Total tax debt resolved ($ billion) $17.7 $18.4 3.9% $34.1 $40 17.3% ANNUAL REPORT 2011-2012
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Financial Statements Discussion and
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Discussion and analysis Analysis of
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Non-financial assets Non-financial
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Canada Revenue Agency Audited Finan
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Emphasis of Matter Without modifyin
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Canada Revenue Agency Statement of
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Canada Revenue Agency Statement of
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A new accounting standard issued by
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Expenses and Recoveries. Except for
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5. Amounts payable to taxpayers The
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the CRA administers. It does not in
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15. Pension contributions, interest
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Individual and Trust Income Tax Ind
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Income Tax Revenues - Individual an
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sales tax credits. This was partial
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summary information as of March 31,
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1.5 Significant changes in fiscal y
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A delegated authorities matrix whic
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Control frameworks The CRA uses the
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The CRA will move into an ongoing a
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Canada Revenue Agency - Unaudited S
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$73.9 million for increased disburs
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Performance Summary (in thousands o
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Authorities approved after Main Est
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