The future for CRA electronic services

Electronic services - More ways to serve you!

Canadians are looking for government services that are secure, reliable, and easy to access. To meet these needs, the Government of Canada has committed to having its most commonly used programs and services online by 2005. The Canada Revenue Agency (CRA) already offers an electronic option for all its taxes and is continuing to expand these offerings.

The CRA is uniquely positioned and qualified to advance the Government On-Line initiative. We deal with every Canadian and Canadian business on a regular basis. Canadians trust us to protect their privacy. We have pioneered electronic service delivery and have an extensive partnership network with other federal and provincial departments. We also have an integrated delivery mechanism with the private sector.

Today, Canadians and Canadian businesses can use various secure, automated, self-service channels to meet their tax obligations. Our services are tailored to suit the needs of the communities we deal with every day. Internet users can interact with us directly or link to our Web site from other government sites. We are committed to providing Canadians and Canadian businesses with options when they deal with us. We will make it easier to interact with us electronically, by phone, in person, or by mail. We will respect our vision of "more ways to serve you!"

Revenue administrations around the world face the challenge of transforming services to keep up with changes in technology, business, and management practices, and we have been consistently at the forefront of these efforts. We participate actively in international organizations like the Organisation for Economic Co-operation and Development.

Information relating to the electronic services available for customs, now part of the new Canada Border Services Agency, is described on their Customs online page.

CRA online services are driven by five key principles:

• Client-driven
  
  We will continue to consult on the future of our electronic services and service-improvement strategies.
  
  
• Convenient, accessible, and bilingual
  
  By making our informational electronic services available 24 hours a day, 7 days a week, and most of our transactional services available 21 hours a day, 7 days a week, we will offer more ways to serve Canadians and Canadian businesses.
  
  
• Faster
  
  Electronic services will help speed up our processes by eliminating paper handling and reducing errors.
  
  
• Respectful of privacy and security
  
  We are responsible, under the Income Tax Act and the Excise Tax Act, for protecting the information we hold from unauthorized use and disclosure. We will ensure that the electronic services we offer continue to meet the strict privacy, confidentiality, and security standards that the legislation requires and that Canadians expect from us.
  
  
• Choice
  
  We recognize that while many Canadians welcome the move to electronic services, they also value traditional channels. We will continue to offer a choice: in person, by mail, by phone, or over the Internet.

The future of electronic service delivery

During the last 10 years, we have made great progress in electronic service delivery. But there is much more we can accomplish. We are working to improve our existing electronic online services and to introduce new options. As Canadians and Canadian businesses continue to embrace electronic commerce and seek innovative ways of communicating with their government, we welcome the challenge of doing more of our business online.

To identify the essential elements that must be in place to ensure good performance in the future, and thereby allow us to remain a recognized leader in responsible and fair tax administration, we entered into extensive dialogue with our clients and our employees as part of our Future Directions.

The Future Directions initiative provided Canadians, business clients, and CRA stakeholders with the opportunity to share their perspective in defining our service vision and to contribute to our business transformation agenda. It has ensured that we have a business transformation agenda that enables us to respond to the future expectations and priorities of Canadians effectively and efficiently. Our goal is to make it easier for Canadians to comply with their tax obligations through excellent client-centred service.

One of the key messages from these consultations was that we will need to progressively and thoughtfully shift the way we operate, from traditional methods centred around broad solutions that meet the needs of vast numbers of clients, to more tailor-made, targeted solutions that can more fully and effectively deal with the situation of individual clients and client groups. The strength of this message reinforced our core mission of promoting compliance with Canada's tax laws.

It is not surprising that one of the strategic directions to be emphasized was the need for expanded electronic services. This means that we will continue to apply technology to the full range of our services so that our clients can self-serve where appropriate.

We will do business with Canadians in the way they wish to do business with us. While traditional methods of service will continue to be available, electronic options will grow in popularity. Clients will be able to access information at times that are most convenient to them. We will work to link our electronic services with those of other federal departments and levels of government to deliver practical, single-window services for Canadians and Canadian businesses.

We will present a client-centred online view so that clients can get the answers they need more easily. Most importantly, we will provide electronic service options that will be accessible to clients and allow them to communicate with us and conduct online transactions in a secure environment.

Top of page

Where are we today?

For several years now, Canadians and Canadian businesses have accessed electronic channels to communicate with us. As a result, we have moved from a passive role of providing information to an interactive role of answering questions, handling requests, and providing electronic online services.

We use sophisticated security techniques to protect your personal and financial information and our Web site at all times. Visit The CRA and Internet security page of our Web site for details.

We are committed to respecting the personal privacy of visitors to our Web site. Visitors can browse information, forms, and publications freely without being tracked-personal data is never collected. We use software programs to monitor our Web site to identify any unauthorized attempts to add or change the content of our site or cause damage. We use firewalls to filter communications between outside computers and our computers. We do not attempt to link the address of the computer to the identity of individuals visiting our site unless unauthorized access or an attempt to damage the site has been detected.

We make sure that your personal and financial information is encrypted when transmitted between your computer and our secure Web servers by using the highest form of encryption generally available. This ensures that computer hackers and other Internet users cannot alter or view data being transmitted between you and us. Using very stringent security requirements, this technology allows your online sessions with us to be as secure as with any Canadian bank. As part of our security measures, you must use a browser that meets CRA security standards and settings to do transactions with us. You can test your browser to make sure it meets our standards. If it does not meet our standards, you can get a browser that does by following the instructions in our browser set-up page.

We are the first federal organization to put into action a state-of-the-art electronic security initiative of the Government of Canada, epass Canada.

The CRA online

Providing answers to Canadians through our Web site is the backbone of our online presence, and our home page provides the master key. Whether you are searching by subject or transaction, our Web site can help you find what you need quickly.

Our Web site is designed to help you find answers to your questions quickly and accurately, but you can also get more details by phone, by mail, or in person. Contact information, such as addresses, phone numbers, and fax numbers for CRA tax and charities offices, is also available on the site.

Almost all our forms and publications are available on our Web site. Among the almost 7,000 forms and publications available are the General Income Tax and Benefit Package for 2005, previous years' tax packages, fillable forms, and recently added forms and publications. There is also an online order form you can use to order printed copies of our forms and publications.

An online calculator is available to determine the amount of child and family benefits you may be entitled to receive. These benefits include the Canada Child Tax Benefit (CCTB), the Child Disability Benefit (CDB), and the goods and services tax/harmonized sales tax (GST/HST) credit as well as related provincial and territorial benefits.

Our Web site contains interpretation bulletins and information circulars that provide detailed information on many specialized aspects of the Income Tax Act and the Excise Tax Act. Electronic mailing lists are also available on various subjects, including GST/HST and payroll, to allow Canadians to receive important new information by email. As well, details about our plan for service improvement and our service standards are available as part of our efforts to improve accountability.

The information on our Web site, organized on almost 20,000 Web pages, is designed to help all Canadians deal with CRA matters, whether they are filing tax returns or looking for information on fairness and client rights. Last year, we had a 42% increase in the number of hits on the tax-related part of our Web site. In response to this growing demand for electronic services, we continue to redesign our Web site for easier access.

Electronic options for individuals and recipients of benefits

Canadians can access My Account to get information about their personal tax account or benefit entitlements and to manage their tax affairs online.

With My Account you can see information about your:

• tax refund or balance owing
• direct deposit
• RRSP, Home Buyers' Plan, and Lifelong Learning Plan
• income tax and benefit returns
• account balance and payments on filing
• instalments
• Canada Child Tax Benefit and related provincial and territorial programs payments, account balance, and statement of account
• GST/HST credit and related provincial programs payments, account balance, and statement of account
• addresses and telephone numbers

With My Account you can also manage your personal income tax and benefit account online by:

• changing your return
• changing your address or telephone numbers
• formally disputing your assessment or determination

Canadians can also access the CRA Web site to find general information for individuals on income tax and benefit programs. Answers are available 24 hours a day, 7 days a week.

Individual Canadians can file their income tax return electronically. Last year, Canadians and their representatives filed more than 9 million tax returns electronically. The T1 electronic filing participation rate was close to 50% for most provinces and territories. Options include filing over the Internet using CRA-certified software (NETFILE), filing over the phone (TELEFILE), or filing through a third-party transmitter (EFILE). Information and access to these electronic services is available on our electronic services page.

Using a pre-authorized debit option, Canadians allow us to deduct a predetermined amount from their bank account on a predetermined date to pay their personal income tax instalments and arrears. Individuals and businesses can also pay their taxes electronically through their financial institution's phone or Internet bill-payment services.

Electronic options for businesses

Our TeleReply service allows employers to send us their payroll deductions account "nil" remittance information using a touch-tone phone. They can also file paper returns, use magnetic media, or complete and transmit T4 information returns over the Internet using the Information Returns Electronic Filing system. Businesses can file their information returns over the Internet in one of three ways, depending on the number of slips. For 3 slips or less, they can use T4 Web forms, a filing option consisting of online fillable forms. For up to 70 slips, they can use T4 Desktop Application, a downloadable application, or they can purchase commercial payroll software and submit a file containing their slips directly from the software using T4 Internet File Transfer (XML). Since February 2003, we have been accepting cancellations and amendments in electronic format for information slips.

New businesses can register online for a Business Number, the GST/HST, payroll deductions, import/export, and corporate income tax accounts, as well as for provincial programs in Nova Scotia, New Brunswick, Manitoba, British Columbia, and Ontario. Corporations now have the option of filing their corporation income tax returns electronically over the Internet using Corporation Internet Filing.

With the GST/HST TELEFILE service, businesses can file "nil" and credit returns with a refund balance of $10,000 or less over the phone. All GST/HST registrants can also file their returns and remittance information electronically through an EDI system available through some financial institutions. As of April 2003, qualified registrants across Canada, with the exception of Quebec, can file GST/HST returns with a "nil" or credit balance over the Internet using the GST/HST NETFILE service if the refund balance is $10,000 or less.

Since October 2002, business clients have been able to request certain financial actions electronically, such as a refund, an interest review, a payment search, or the transfer of a credit, 24 hours a day, 7 days a week. They have also been able to request additional remittance forms, statements, and reproductions of previously issued correspondence on their corporation account. Most of these requests are processed automatically and rapidly, directly by our IT systems.

Tax professionals online

Many Canadians choose to hire tax professionals to help them meet their obligations and verify their entitlements. We have created a portal for tax professionals on our Web site to provide them with quick and accurate access to the information they commonly seek.

Co-operation with the provinces and territories

Federal or provincial and territorial departments, child care agencies, and authorized institutions caring for and educating children under the age of 18 can now apply online for the Children's Special Allowances benefit program.

NCBS on the Net is a secure, Internet-based, two-way data exchange and enquiry service that allows real-time access to National Child Benefit Supplement (NCBS) data for co-operating provincial and territorial social assistance departments to determine eligibility and entitlement to social assistance payments.

With the written consent of the person, provincial and territorial departments and social service agencies use the income information we have to verify that person's eligibility and to calculate the amount of assistance for income-tested support programs. A new Internet-based process for providing this income information to authorized offices of a provincial government is a fast, convenient, and secure alternative to other methods. This new process is now in place, and other programs will be added in stages. Canadians will find out whether they are eligible for benefits more quickly and will benefit from a reduced chance that their benefits will be incorrectly calculated.

Charities online

Electronic services are available online for Canadian registered charities and Canadians who want information about Canadian registered charities through the redesigned charities pages of our Web site.

Our Web site includes searchable online lists of all registered charities, charities that were registered within the previous 12 months, and charities whose registered status was revoked within the previous 12 months. These lists are updated weekly. You can also find publicly available parts of charities' annual information returns on these lists, starting with the 2000 tax year.

As a result of the consultations held as part of the Future Directions initiative, a redesigned Form T3010A, Registered Charity Information Return, was introduced in 2003. This new form is shorter and easier to use. A sample is available online. Other services that have been introduced as a result of the consultations include online registration for the Charities Roadshow information sessions, extending the Charities Call Centre's hours of service, and a much faster average turnaround time for processing applications to become a registered charity (from four months to four weeks).

Our Web site now includes policy documents and interpretations on which we base our decisions, service standards, as well as forms, publications, and newsletters. More documents will be posted as they become available.

Top of page

What's coming next?

We are continuing to explore state-of-the-art technology to provide better and faster service to Canadians. We will provide programs and initiatives that strike an optimum balance between responsible enforcement and helping Canadians meet their obligations through client-centred information and education.

Services for Canadians

In a joint effort with Human Resources Development Canada (HRDC), we will continue to explore ways to simplify the process of identifying which seniors are entitled to the Guaranteed Income Supplement (GIS) and of calculating the GIS.

My Account will continue to grow, and you will soon be able to:

• authorize a representative;
• set up a pre-authorized payment plan; and
• arrange for direct deposit.

Services for Canadian businesses

Many Canadian financial institutions offer a bill presentation option. We will allow small employers to use this service to receive their PD7A Remittance Form for payroll source deductions as well as Canada Pension Plan and employment insurance deductions.

An electronic T4 and T5 filing initiative for medium-sized employers has begun. Research on and design of the new filing method is planned for the coming year.

Top of page

What are our long-term plans?

We are continuing our efforts to build a better, more agile, and more innovative administration to take advantage of the business opportunities that are available. This will result in a positive and productive agenda and help create the conditions required for a healthy, vibrant economy.

We already offer an impressive selection of electronic services that we will continue to develop and expand. We strive to offer our clients more and better ways of communicating with us. Following is a glimpse at some of the services we will develop or consider in the future.

Client services

We want to build on the wide range of service options available to our clients when they deal with us in person, over the phone, and over the Internet. We will provide our employees with the electronic tools they need to better respond to enquiries and help Canadians and Canadian businesses self-serve. We also want to move toward integrating our service channels, mainly phone and online service, with the goal of offering an even more effective, client-centred service.

Family and individual benefits

Canadians want to be able to apply or register online for the CCTB or GST/HST credit as well as for related provincial and territorial benefit or credit programs. Building on the information included on My Account, options such as these may be added.

Individual tax

We will aggressively promote and support the growth in electronic filing by individuals. We aim to have 50% of all returns filed electronically next year-up from 43% last year.

As new options and functions are added to My Account, we believe Canadians and tax professionals will benefit from online services that will allow them to set up direct deposit of refunds or benefit payments, submit information, calculate instalments, and request time extensions.

We would also like to give Canadians the tools that would allow them to calculate their instalment payments as well as the rate of repayment for an RRSP, a Lifelong Learning Plan, and a Home Buyers' Plan. In addition, non-residents could benefit from an online system to determine their residency status.

Payments to CRA accounts

More electronic options will be available for making CRA tax payments, including self-serve payments by phone and online.

Registered plans

Access by subscription to a specialized collection of electronic documents relating to registered plans could be very beneficial to Canadians.

Charities

By 2005, all everyday aspects of a charity's dealings with us will be possible through electronic delivery mode. This will allow charities to file an information return or application for charitable status electronically. It will also allow them to find more of the policies and interpretations on which we base our decisions online. We will offer the use of the charities portal to other federal departments and levels of government so that they can make information more easily available to their clients.

Business tax

By 2005, small- and medium-sized enterprises will be able to do all their everyday transactions securely online. We also plan to add general information for large corporations.

We will expand our efforts to simplify and integrate processes, such as the T4 information return and slips and the HRDC Record of Employment, in collaboration with other government departments.

In terms of large businesses, we will develop and implement electronic services that provide the capacity for dynamic, real-time interactions. We will also create a large business portal on our Web site to provide large businesses with an easy and direct mechanism to get the information they need.

Tax professionals

In addition to the information currently available on our Web site, we will offer tax professionals access to the information they need to manage their authorized clients' accounts online, provided their clients have filed electronically.

Rulings

We are working on providing our clients with a Web-based application, giving them access to all types of rulings.

This document is an overview of Government On-Line and the electronic services we provide. For more information, visit www.ccra.gc.ca/eservices/menu-e.html.

We will revise this information and the links provided as we progress towards our goal.