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

(g) Employee future benefits
(i) Pension benefits
All eligible employees participate in the Public Service Pension Plan administered by the Government of Canada.
The CRA’s contributions reflect the full cost as employer. These amounts are currently based on a multiple of an
employee’s required contributions and may change over time depending on the experience of the Plan. The CRA’s
contributions are expensed during the year in which the services are rendered and represent the total pension
obligation of the CRA. Current legislation does not require the CRA to make contributions with respect to any
actuarial deficiencies of the Public Service Pension Plan.
(ii) Health and dental benefits
The Government of Canada sponsors an employee benefit plan (health and dental) in which the CRA participates.
Employees are entitled to health and dental benefits, as provided for under labour contracts and conditions of
employment. The CRA’s contributions to the plan, which are provided without charge by the Treasury Board
Secretariat, are recorded at cost based on a percentage of the salary expenses and charged to personnel expenses
in the year incurred. They represent the CRA’s total obligation to the plan. Current legislation does not require the
CRA to make contributions for any future unfunded liabilities of the plan.
(iii) Severance benefits
Some employees are entitled to severance benefits, as provided for under labour contracts and conditions of
employment. The cost of these benefits is accrued as employees render the services necessary to earn them. These
benefits represent an obligation of the CRA that entails settlement by future payments. The obligation resulting
from the benefits earned by employees is calculated using information derived from the results of the actuarially
determined liability for employee severance benefits for the CRA.
(h) Due from the Consolidated Revenue Fund (CRF)
Amounts due from the CRF are the result of timing differences between when a transaction affects authorities and when
it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the CRA is entitled to
draw from the CRF without further authorities to discharge its liabilities.
(i) Accounts receivable and advances
Accounts receivable and advances are stated at the lower of cost and net recoverable value. An allowance for doubtful
accounts is recorded where recovery is considered uncertain.
(j) Tangible capital assets
All costs of $10,000 or more incurred by the CRA to acquire or develop tangible capital assets are capitalized and
amortized over the useful lives of the assets. Similar items under $10,000 are expensed.
Tangible capital assets are amortized on a straight-line basis over the estimated useful lives of assets as follows:
Asset class Useful life
Machinery, equipment, and furniture 10 years
In-house developed software 5-10 years
Vehicles and other means of transportation 5 years
Information technology equipment 5 years
Purchased software 3 years
Leased tangible capital assets Term of the lease
Assets under construction/development are not amortized until completed and put into operation.
ANNUAL REPORT
2011-2012
CANADA REVENUE AGENCY