2013-14 Report on Plans and Priorities
Statement of management responsibility
We have prepared the accompanying future-oriented financial statements of the Canada Revenue Agency (CRA) according to the accounting principles consistent with those applied in preparing the financial statements of the Government of Canada. Significant accounting policies are set out in Note 4 to the financial statements. The future-oriented financial statements are submitted for Part III of the Estimates (Report on Plans and Priorities). The information will also be presented in the CRA's Departmental Performance Report to compare with actual results.
Management is responsible for the integrity and objectivity of the information contained in the future-oriented financial statements and for the process of developing assumptions. Assumptions and estimates are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in the CRA's mandate and strategic objectives. Much of the future-oriented financial information is based on these assumptions, best estimates, and judgment and gives due consideration to materiality. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. However, as with all such assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.
The actual results achieved for the fiscal years covered in the accompanying future-oriented financial statements will vary from the information presented and the variations may be material.
Approved by:
Andrew Treusch
Commissioner of Revenue and
Chief Executive Officer
Filipe Dinis
Chief Financial Officer and Assistant Commissioner, Finance and Administration
Ottawa, Ontario
February 1, 2013
Canada Revenue Agency
Future-oriented Financial Statements – Agency Activities
| 2013 | 2014 | |
|---|---|---|
| LIABILITIES | ||
| Accrued salaries | 43,461 | 69,555 |
| Accounts payable and accrued liabilities (Note 6) | 168,029 | 169,682 |
| Vacation pay and compensatory leave | 182,878 | 182,779 |
| Employee severance benefits (Note 7c) | 527,316 | 495,352 |
| Total liabilities | 921,684 | 917,368 |
| Financial assets | ||
| Cash | 85 | 85 |
| Due from the Consolidated Revenue Fund | 172,004 | 182,539 |
| Accounts receivable and advances (Note 8) | 7,515 | 7,677 |
| Total financial assets | 179,604 | 190,301 |
| Agency net debt | 742,080 | 727,067 |
| Non-financial assets | ||
| Prepaid expenses | 13,083 | 13,214 |
| Tangible capital assets (Note 9) | 385,885 | 404,764 |
| Total non-financial assets | 398,968 | 417,978 |
| Agency net financial position | 343,112 | 309,089 |
| Contingent liabilities (Note 13) | ||
| The accompanying notes are an integral part of these future-oriented financial statement. |
| 2013 | 2014 | |
|---|---|---|
| Expenses (Note 10) | ||
| Internal services | 1,370,431 | 1,137,648 |
| Reporting compliance | 1,247,166 | 1,215,133 |
| Assessment of returns and payment processing | 740,233 | 704,900 |
| Accounts receivable and returns compliance | 689,107 | 675,935 |
| Taxpayer and business assistance | 368,433 | 361,730 |
| Appeals | 253,992 | 253,298 |
| Benefit programs | 164,643 | 164,284 |
| Taxpayers' Ombudsman | 3,556 | 3,673 |
| Total expenses | 4,837,561 | 4,516,601 |
| Non-Tax Revenues (Note 11) | ||
| Internal services | 216,026 | 212,026 |
| Reporting compliance | 25,326 | 43,779 |
| Assessment of returns and payment processing | 56,698 | 56,112 |
| Accounts receivable and returns compliance | 158,285 | 160,068 |
| Taxpayer and business assistance | 55,500 | 55,721 |
| Appeals | 18,161 | 18,995 |
| Benefit programs | 42,597 | 38,474 |
| Revenues earned on behalf of Government | (63,865) | (68,209) |
| Total non-tax revenues | 508,728 | 516,966 |
| Net cost of operations before government funding | 4,328,833 | 3,999,635 |
| Government funding | ||
| Net cash to be provided by the Government of Canada | 4,106,076 | 3,601,591 |
| Change in due from the Consolidated Revenue Fund | (3,847) | 10,535 |
| Services to be provided without charge from other government agencies and departments (Note 12) | 428,027 | 421,532 |
| Total government funding | 4,530,256 | 4,033,658 |
| Operating surplus after government funding | (201,423) | (34,023) |
| Agency net financial position - Beginning of year | 544,535 | 343,112 |
| Agency net financial position - End of year | 343,112 | 309,089 |
| The accompanying notes are an integral part of these future-oriented financial statement. |
| 2013 | 2014 | |
|---|---|---|
| Operating surplus after government funding |
(201,423) |
(34,023) |
| Change in tangible capital assets | ||
|
Acquisition of tangible capital assets (Note 9) |
68,520 |
107,759 |
|
Amortization of tangible capital assets (Note 9) |
(79,119) |
(82,793) |
|
Net loss on disposal/write-off of tangible capital assets |
(7,452) |
(6,087) |
|
Total change in tangible capital assets |
(18,051) |
18,879 |
|
Change in prepaid expenses |
130 |
131 |
|
Net decrease in agency net debt |
(219,344) |
(15,013) |
|
Agency net debt - Beginning of year |
961,424 |
742,080 |
|
Agency net debt - End of year |
742,080 |
727,067 |
| The accompanying notes are an integral part of these future-oriented financial statement. |
| 2013 | 2014 | |
|---|---|---|
| OPERATING ACTIVITIES | ||
| Net cost of operations before government funding | 4,328,833 | 3,999,635 |
| Items not affecting cash | ||
| Amortization of tangible capital assets (Note 9) | (79,119) | (82,793) |
| Net loss on disposal/write-off of tangible capital assets | (7,452) | (6,087) |
| Services to be provided without charge from other government agencies and departments (Note 12) | (428,027) | (421,532) |
| Change in financial assets other than due from the Consolidated Revenue Fund | (859) | 162 |
| Change in prepaid expenses | 130 | 131 |
| Change in liabilities | 224,050 | 4,316 |
| Cash used by operating activities | 4,037,556 | 3,493,832 |
| Capital investing activities | ||
| Acquisition of tangible capital assets funded by current year appropriations (Note 5b) | 67,635 | 103,985 |
| Acquisition of tangible capital assets not funded by current year appropriations | 885 | 3,774 |
| Cash used by capital investing activities | 68,520 | 107,759 |
| Net cash to be provided by the Government of Canada | 4,106,076 | 3,601,591 |
| The accompanying notes are an integral part of these future-oriented financial statement. |
Notes to the Future-oriented Financial Statements – Agency Activities
1. Authority and objectives
The Canada Revenue Agency (CRA) is an agent of Her Majesty in right of Canada under the Canada Revenue Agency Act. The CRA is a departmental corporation named in Schedule II of the Financial Administration Act and reports to Parliament through the Minister of National Revenue.
The mandate of the CRA is to support the administration and enforcement of tax legislation as well as other related legislation. The CRA provides support, advice, and services by:
(a) supporting the administration and enforcement of program legislation;
(b) implementing agreements between the Government of Canada or the CRA and the government of a province, territory, or other public body performing a function of government in Canada to carry out an activity or administer a tax or program;
(c) implementing agreements or arrangements between the CRA and departments or agencies of the Government of Canada to carry out an activity or administer a program; and
(d) implementing agreements between the Government of Canada and First Nations governments to administer a tax.
The CRA collects revenues, including income and sales taxes and employment insurance premiums, administers tax legislation, delivers a number of social benefit programs to Canadians for the federal, provincial, territorial, and First Nations governments, and collects amounts, including Canada Pension Plan contributions, for other groups or organizations. It is responsible for administering and enforcing of the following acts or parts of acts: the Air Travellers Security Charge Act, the Canada Revenue Agency Act, the Children's Special Allowances Act, Part V.1 of the Customs Act, section 2 of the Energy Costs Assistance Measures Act, the Excise Act, the Excise Tax Act (including the goods and services tax (GST) and the harmonized sales tax (HST) except for GST/HST on imported goods), the Excise Act, 2001, the Income Tax Act, the Softwood Lumber Products Export Charge Act, 2006, the Universal Child Care Benefit Act, and others including various provincial acts.
In delivering its mandate, the CRA operates under the following program activities:
(a) Internal services: Provides internal services across the CRA, such as human resources management, financial management and information technology, to support the needs of programs and corporate obligations;
(b) Reporting compliance: Verifies complete and accurate disclosure by taxpayers of all required information to establish tax liabilities;
(c) Assessment of returns and payment processing: Processes and validates taxpayer returns; registers, establishes, and maintains taxpayer accounts and; receives payments;
(d) Accounts receivable and returns compliance: Identifies and addresses non-compliance with taxpayer filing and remittance requirements;
(e) Taxpayer and business assistance: Assists taxpayers in meeting their obligations under the self-assessment;
(f) Appeals: Provides a dispute resolution process for taxpayers who disagree with decisions taken by the CRA;
(g) Benefit programs: Provides Canadians certain income-based benefits, credits and other services on behalf of federal, provincial (except Québec), and territorial governments;
(h) Taxpayers' Ombudsman: Addresses requests for reviews made by taxpayers and benefit recipients with respect to service matters.
2. Underlying Assumptions
These future-oriented financial statements have been prepared:
(a) based on information known as at December 31, 2012;
(b) on the basis of government policies, government priorities, and external environment at the time the future-oriented financial information was finalized;
(c) according to the requirements of Treasury Board Accounting Standards which are based on Canadian public sector accounting standards;
(d) on the basis that the resources provided will enable the CRA to deliver the expected results specified in the Report on Plans and Priorities;
(e) on the basis of historical costs.
3. Variations and changes to the forecasted financial Information
While every attempt has been made to accurately forecast final results of 2012-2013 and 2013-2014, actual results are likely to vary from the forecast information presented, and this variation could be material.
The CRA will not be updating the forecasts for any changes to appropriations or forecast financial information made in ensuing supplementary estimates. Variances will be explained in the Departmental Performance Report.
4. Summary of significant accounting policies
For financial reporting purposes, the CRA's activities have been divided into two sets of financial statements: agency activities and administered activities. The Financial Statements - Agency Activities include those operational revenues and expenses which are managed by the CRA and utilized in running the organization. The Financial Statements - Administered Activities include those revenues and expenses that are administered on behalf of the federal, provincial, and territorial governments, First Nations, and other organizations. The purpose of the distinction between agency and administered activities is to facilitate, among other things, the assessment of the administrative efficiency of the CRA in achieving its mandate. No future-oriented financial statements were prepared for administered activities because it is analogous to information presented by the Department of Finance.
These future-oriented financial Statements - Agency Activities have been prepared using accounting principles consistent with those applied in the preparation of the financial statements of the Government of Canada. The accounting principles used are based on Canadian public sector accounting standards. A summary of significant accounting policies follows:
(a) Parliamentary appropriations
The CRA is financed by the Government of Canada through Parliamentary appropriations. Accounting for appropriations provided to the CRA does not parallel financial reporting according to Canadian public sector accounting standards, as they are based in large part on cash flow requirements. Consequently, items recognized in the Future-oriented Statement of Financial Position and the Futures-oriented Statement of Operations and Agency Net Financial Position may be different from those provided through appropriations from Parliament. Note 5(b) provides a high-level reconciliation between the two bases of reporting.
(b) Net cash to be provided by the Government of Canada
The CRA operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the CRA is deposited to the CRF and all cash disbursements made by the CRA are paid from the CRF. The net cash to be provided by government is the difference between all respendable cash receipts and all cash disbursements including transactions with departments and agencies.
(c) Forecasted expenses
Expenses are recognized when goods are received and/or services are rendered.
(d) Services to be provided without charge from other government agencies and departments
Estimates of the cost for services to be provided without charge from other government agencies and departments are included in expenses.
(e) Forecasted revenues
Non-tax revenue is recognized when the services are rendered by the CRA.
Non tax revenues that are not available for spending cannot be used to discharge the CRA's liabilities. While management is expected to maintain accounting control, it has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented in reduction of the CRA's gross revenues.
(f) Vacation pay and compensatory leave
Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment. The liability for vacation pay and compensatory leave is calculated at the salary levels in effect at the end of the year for all unused vacation pay and compensatory leave benefits accruing to employees.
(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 |
Assets under construction/development are not amortized until completed and put into operation.
(k) Contingent liabilities
Contingent liabilities are potential liabilities that may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable, the CRA's best estimate of the contingency is disclosed in the notes to the financial statements.
(l) Measurement uncertainty
The preparation of the future-oriented financial information requires management to make estimates and assumptions that affect the amounts of assets, liabilities, revenues and expenses reported in the future-oriented financial statements. Assumptions are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. Nonetheless, as with all such estimates and assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.
5. Parliamentary appropriations
The CRA receives most of its funding through annual Parliamentary appropriations. Items recognized in the Future-oriented Statement of Financial Position and the Future-oriented Statement of Operations and Agency Net Financial Position in one year may be funded through Parliamentary appropriations in prior, current, or future years. Accordingly, the CRA has different net results of operations for the year on a government funding basis than on an accrual accounting basis. These differences are reconciled below.
a) Reconciliation of Parliamentary appropriations to be provided and used:
| 2013 | 2014 | |
|---|---|---|
| Parliamentary appropriations — to be provided: | ||
| Vote 1 - Operating expenditures, contributions and recoverable expenses on behalf of the Canada Pension Plan and the Employment Insurance Act | 3,507,920 | 3,039,746 |
| Vote 5 - Capital expenditures | 83,433 | 73,082 |
| Spending of revenues received through the conduct of its operations pursuant to section 60(2) of the Canada Revenue Agency Act | 185,679 | 193,779 |
| Statutory expenditures: | ||
| Contributions to employee benefits plans | 456,440 | 442,878 |
| Disbursements to provinces under the Softwood Lumber Products Export Charge Act, 2006 (Footnote 1) | 280,000 | 283,000 |
| Children's Special Allowance payments (Footnote 1) | 233,000 | 238,000 |
| Minister of National Revenue - Salary and motor car allowance | 78 | 79 |
| 4,746,550 | 4,270,564 | |
| Less: | ||
| Appropriations available for future years (Footnote 2) - Vote 5 | (30,992) | (18,972) |
| Expenditures related to Administered Activities (Footnote 1) | (513,000) | (521,000) |
| (543,992) | (539,972) | |
| Total Parliamentary appropriations to be used | 4,202,558 | 3,730,592 |
(Footnote 1) In accordance with the division of activities for financial reporting purposes outlined in Note 4, the payments under the Softwood Lumber Products Export Charge Act, 2006, and the Children's Special Allowances Act are reported as federal administered expenses on the Statement of Administered Expenses and Recoveries of the CRA's Financial Statements - Administered Activities.
(Footnote 2) Pursuant to section 60(1) of the Canada Revenue Agency Act, the balance of money appropriated by Parliament for the use of the CRA that remains unexpended at the end of the fiscal year lapses at the end of the following fiscal year.
b) Reconciliation of net cost of operations before government funding to total Parliamentary appropriations to be used:
| 2013 | 2014 | |
|---|---|---|
| Net cost of operations before government funding | 4,328,833 | 3,999,635 |
| Expenses not requiring use of current year appropriations: | ||
| Amortization of tangible capital assets (Note 9) | (79,119) | (82,793) |
| Loss on disposal/write-off of tangible capital assets | (7,452) | (6,087) |
| Services to be provided without charge from other government agencies and departments (Note 12) | (428,027) | (421,532) |
| Other | (69,956) | (59,243) |
| (584,553) | (569,655) | |
| Changes to non financial assets affecting appropriations: | ||
| Tangible capital assets acquisitions | 67,635 | 103,985 |
| Variation in prepaid expenses | (130) | (131) |
| 67,505 | 103,854 | |
| Changes in future funding requirements: | ||
| Employee severance benefits | 204,997 | 31,964 |
| Salary, vacation pay and compensatory leave | 99 | (28,985) |
| 205,096 | 2,979 | |
| Non-tax revenues available for spending | 185,678 | 193,779 |
| Total Parliamentary appropriations to be used | 4,202,558 | 3,730,592 |
6. Accounts Payable and accrued liabilities
| 2013 | 2014 | |
|---|---|---|
| Accounts Payable and accrued liabilities - Related parties | 44,118 | 44,560 |
| Accounts Payable and accrued liabilities - External | 123,911 | 125,122 |
| 168,029 | 169,682 |
7. Employee future benefits
(a) Pension benefits
The CRA and all eligible employees contribute to the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of two percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to the inflation.
Both the CRA and employees contribute to the Public Service Pension Plan. The yearly expense for the CRA's contributions represents approximately 1.8 times the contributions by employees. The contributions to the Public Service Pension Plan for the forecasted years are expected to be as follows:
| 2013 | 2014 | |
|---|---|---|
| CRA's contributions | 325,898 | 315,982 |
| Employees' contributions | 191,518 |
196,263 |
The CRA's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada.
(b) Health and Dental benefits
The CRA contributes for all eligible employees to the Public Service Health Care Plan and Public Service Dental Care Plan, which are sponsored by the Government of Canada.
The CRA's responsibility with regard to these plans is limited to its contributions (refer to Note 12). Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada.
(c) Severance benefits
The CRA provides severance benefits to its employees based on eligibility, years of service and salary upon termination. These severance benefits are not pre-funded with assets supporting the obligations, resulting in a deficit equal to the accrued benefit obligations. Benefits will be paid from future appropriations. Information about the severance benefits, measured at the time of preparation of these statements, is as follows:
| 2013 | 2014 | |
|---|---|---|
| Employee severance benefits, beginning of year | 732,313 | 527,316 |
| Cost for the year | 13,278 | 3,112 |
| Benefits to be paid during the year | (218,275) | (35,076) |
| Employee severance benefits, end of year | 527,316 |
495,352 |
8. Accounts receivable and advances
| 2013 | 2014 | |
|---|---|---|
| Accounts receivable - Related parties | 3,720 | 3,757 |
| Accounts receivable - External | 554 | 560 |
| Advances to employees | 1,368 | 1,415 |
| Salary overpayments | 2,666 | 2,756 |
| 8,308 | 8,487 | |
| Less: Allowance for doubtful accounts | (793) | (811) |
| Total accounts receivable and advances | 7,515 | 7,677 |
9. Tangible capital assets
| Cost - 2013-2014 | ||||
|---|---|---|---|---|
| Opening balance | Acquisitions | Disposals | Closing balance | |
| Tangible capital Asset Class | ||||
| Machinery, equipment and furniture | 10,551 | 54 | 1,832 | 8,773 |
| Software (purchased and in-house developed and/or in development) | 762,500 | 106,518 | 9,557 | 859,461 |
| Vehicles and other means of transportation | 2,215 | 13 | - | 2,228 |
| Information technology equipment | 18,301 | 1,174 | 2,791 | 16,684 |
| Total | 793,567 | 107,759 | 14,180 |
887,146 |
| Accumulated amortization - 2013-2014 | ||||
|---|---|---|---|---|
| Opening balance | Amortization expense | Disposals | Closing balance | |
| Tangible capital Asset Class | ||||
| Machinery, equipment and furniture | 6,006 | 2,140 | 1,443 | 6,703 |
| Software (purchased and in-house developed and/or in development) | 383,683 | 79,125 | 4,496 | 458,312 |
| Vehicles and other means of transportation | 1,736 | 337 | - | 2,073 |
| Information technology equipment | 16,257 | 1,191 | 2,154 | 15,294 |
| Total | 407,682 | 82,793 | 8,093 |
482,382 |
| 2013 Net book value | 2014 Net book value | |
|---|---|---|
| Tangible capital Asset Class | ||
| Machinery, equipment and furniture | 4,545 | 2,070 |
| Software (purchased and in-house developed and/or in development) | 378,817 | 401,149 |
| Vehicles and other means of transportation | 479 | 155 |
| Information technology equipment | 2,044 | 1,390 |
| Total | 385,885 | 404,764 |
The cost of software in development, which is not amortized, is $188,517,255 as at March 31, 2014 ($130,622,538 as at March 31, 2013).
10. Segmented information - Expenses
The following table presents the expenses by program activity and expense category as described in Note 1 of these Future-oriented financial statements.
| Internal services | Reporting compliance | Assessment of returns and payment processing | Accounts receivable and returns compliance | Taxpayer and business assistance | |
|---|---|---|---|---|---|
| Personnel: | |||||
| Salaries | 497,153 | 742,618 | 332,176 | 399,204 | 219,450 |
| Other allowances and benefits (including employee benefits described in Note 7c) | 187,413 | 281,985 | 123,218 | 157,740 | 86,167 |
| 684,566 | 1,024,603 | 455,394 | 556,944 | 305,617 | |
| Accommodation | 68,232 | 106,804 | 45,583 | 59,450 | 32,553 |
| Professional and business services | 198,001 | 24,507 | 22,769 | 16,375 | 6,958 |
| Transportation and communications | 58,577 | 25,795 | 28,764 | 17,545 | 6,936 |
| Federal sales tax administration costs by the Province of Québec | - | - | 113,000 | - | - |
| Repair and maintenance | 20,802 | 16,699 | 18,628 | 11,360 | 4,490 |
| Amortization of capital assets (Note 9) | 72,120 | 865 | 6,907 | 816 | 602 |
| Equipment purchases | 8,224 | 3,407 | 3,854 | 2,420 | 966 |
| Other services and expenses | 1,659 | 634 | 704 | 430 | 169 |
| Materials and supplies | 12,089 | 5,322 | 5,935 | 3,620 | 1,431 |
| Advertising, information and printing services | 6,819 | 360 | 402 | 245 | 97 |
| Loss on disposal/write-off of capital assets | 2,346 | 32 | 327 | 3,330 | 49 |
| Equipment rentals | 4,213 | 6,105 | 2,633 | 3,400 | 1,862 |
| Total | 1,137,648 | 1,215,133 | 704,900 | 675,935 | 361,730 |
| Appeals | Benefit programs | Taxpayers' Ombudsman | 2014 | 2013 | |
|---|---|---|---|---|---|
| Personnel: | |||||
| Salaries | 106,181 | 86,308 | 1,974 | 2,385,064 | 2,428,130 |
| Other allowances and benefits (including employee benefits described in Note 7c) | 41,248 | 29,900 | 786 | 908,457 | 934,430 |
| 147,429 | 116,208 | 2,760 | 3,293,521 | 3,362,560 | |
| Accommodation | 15,652 | 11,229 | 298 | 339,801 | 337,558 |
| Professional and business services | 51,231 | 10,660 | 205 | 330,706 | 390,814 |
| Transportation and communications | 18,666 | 11,939 | 193 | 168,415 | 203,706 |
| Federal sales tax administration costs by the Province of Québec | - | - | - | 113,000 | 148,326 |
| Repair and maintenance | 12,085 | 7,726 | 125 | 91,915 | 109,509 |
| Amortization of capital assets (Note 9) | 207 | 1,276 | - | 82,793 | 79,119 |
| Equipment purchases | 2,564 | 1,672 | 27 | 23,134 | 52,265 |
| Other services and expenses | 457 | 293 | 5 | 4,351 | 5,052 |
| Materials and supplies | 3,851 | 2,463 | 40 | 34,751 | 41,699 |
| Advertising, information and printing services | 261 | 167 | 3 | 8,354 | 11,917 |
| Loss on disposal/write-off of capital assets | - | 3 | - | 6,087 | 7,452 |
| Equipment rentals | 895 | 648 | 17 | 19,773 | 87,584 |
| Total | 253,298 | 164,284 | 3,673 | 4,516,601 |
4,837,561 |
11. Segmented information- Non-tax revenues
The following table presents the revenues generated by program activity and revenue category as described in Note 1 of these Future-oriented financial statements.
| Internal services | Reporting compliance | Assessment of returns and payment processing | Accounts receivable and returns compliance | Taxpayer and business assistance | |
|---|---|---|---|---|---|
| Non-tax revenues credited to Vote 1 | |||||
| Fees for administering the Employment Insurance Act | 57,672 | - | 11,072 | 74,235 | 28,419 |
| Fees for administering the Canada Pension Plan | 46,994 | - | 15,937 | 60,254 | 15,508 |
| 104,666 | - | 27,009 | 134,489 | 43,927 | |
| Non-tax revenues available for spending | |||||
| Services fees | 62,075 | 128 | 2,152 | 88 | 178 |
| Administration fees - provinces and territories | 35,100 | 34,891 | 15,382 | 812 | 1,913 |
| Miscellaneous respendable revenues | 1,971 | 1,624 | 97 | - | 519 |
| 99,146 | 36,643 | 17,630 | 901 | 2,610 | |
| Non-tax revenues not available for spending | |||||
| Recovery of employee benefit costs relating to non-tax revenues credited to Vote 1 and revenues available for spending | 7,389 | 7,136 | 11,473 | 24,678 | 9,184 |
| Miscellaneous non-tax revenues | 825 | - | - | - | - |
| 8,214 | 7,136 | 11,473 | 24,678 | 9,184 | |
| Total non-tax revenues before revenues earned on behalf of Government | 212,026 | 43,779 | 56,112 | 160,068 | 55,721 |
| Revenues earned on behalf of Government | (8,214) | (7,136) | (11,473) | (24,678) | (9,184) |
| Total non-tax revenues | 203,812 | 36,643 | 44,639 | 135,389 | 46,537 |
| Appeals | Benefit programs | 2014 | 2013 | |
|---|---|---|---|---|
| Non-tax revenues credited to Vote 1 | ||||
| Fees for administering the Employment Insurance Act | 9,654 | 377 | 181,429 | 180,505 |
| Fees for administering the Canada Pension Plan | 3,065 | - | 141,758 | 142,545 |
| 12,719 | 377 | 323,187 | 323,050 | |
| Non-tax revenues available for spending | ||||
| Services fees | - | 258 | 64,879 | 70,267 |
| Administration fees - provinces and territories | 3,046 | 33,535 | 124,679 | 111,087 |
| Miscellaneous respendable revenues | - | 10 | 4,221 | 4,324 |
| 3,046 | 33,803 | 193,779 | 185,678 | |
| Non-tax revenues not available for spending | ||||
| Recovery of employee benefit costs relating to non-tax revenues credited to Vote 1 and revenues available for spending | 2,586 | 4,294 | 66,740 | 62,395 |
| Miscellaneous non-tax revenues | 644 | - | 1,469 | 1,470 |
| 3,230 | 4,294 | 68,209 | 63,865 | |
| Total non-tax revenues before revenues earned on behalf of Government | 18,995 | 38.474 | 585,175 | 572,593 |
| Revenues earned on behalf of Government | (3,230) | (4,294) | (68,209) | (63,865) |
| Total non-tax revenues | 15,765 | 34,180 | 516,966 | 508,728 |
12. Related party transactions
The CRA is related in terms of common ownership to all Government of Canada departments, agencies, and Crown corporations. Transactions with Crown corporations entered into by the CRA are in the normal course of business and on normal trade terms applicable to all individuals and enterprises. Transactions with other Government of Canada departments and agencies are conducted on a cost recovery basis.
The CRA is expected to receive various services without charge from other government agencies and departments in the coming years. The estimated costs for significant services to be provided without charge that have been recorded include:
| 2013 | 2014 | |
|---|---|---|
| Employer's contribution to the employee benefit plan (health and dental) - Treasury Board Secretariat | 215,444 | 211,771 |
| Information technology services - Shared Services Canada | 167,493 | 167,318 |
| Legal services - Justice Canada | 36,850 | 34,644 |
| Payroll services - Public Works and Government Services Canada | 4,320 | 4,142 |
| Audit services - Office of the Auditor General of Canada | 2,490 | 2,430 |
| Workers' compensation benefits - Human Resources and Skills Development Canada | 1,490 | 1,227 |
| Total | 428,027 |
421,532 |
13. Contingent liabilities
The CRA is a defendant in certain cases of pending and threatened litigation which arose in the normal course of operations. The current best estimate of the amount to be paid in respect of the cases identified as likely to be lost has been recorded in Accounts payable and accrued liabilities. All other cases, excluding those assessed as unlikely to be lost, are considered contingent liabilities and the related amounts are disclosed whenever the amount of the contingency can be reasonably estimated. At the time of preparation of these statements, contingent liabilities for claims and pending and threatened litigation have been estimated at $37,772,645.
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