Revenue

Business Plan 2002-05

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TABLE OF CONTENTS

• Accountability Statement

• Introduction

• Ministry's Vision and Mission

• Alberta Revenue Values

• Core Businesses

• Core Businesses, Goals and Key Strategies

  • Core Business #1:  Manage Tax and Revenue Programs Fairly and Efficiently

  • Core Business #2:  Manage and Invest Financial Assets Prudently

  • Core Business #3:  Manage Risk Associated with the Loss of Public Assets

  • Core Business #4:  Regulate Alberta's Capital Market

• Key Performance Measures

• Expense by Core Business

• Ministry Statement of Operations

• Consolidated Net Operating Result

This Business Plan for the three years commencing April 1, 2002 was prepared under my direction in accordance with the Government Accountability Act and the government’s accounting policies. All of the government’s policy decisions as at February 26, 2002 with material economic or fiscal implications of which I am aware have been considered in preparing the Business Plan.

The Ministry’s priorities outlined in the Business Plan were developed in the context of the government’s business and fiscal plans. I am committed to achieving the planned results laid out in this Business Plan.

[original signed]

Greg Melchin, Minister of Revenue
February 26, 2002

INTRODUCTION 

The Ministry of Revenue includes the Department of Revenue and responsibility for the Alberta Securities Commission.

DEPARTMENT OF REVENUE
The Department of Revenue is responsible for managing the investments of the Province of Alberta, developing tax policy within the Province, administering tax programs and minimizing the risk of loss of public assets.

ALBERTA SECURITIES COMMISSION
The Alberta Securities Commission is the regulatory agency responsible for overseeing the capital market in Alberta. 

KEY INITIATIVES
Alberta Revenue continues to work on major initiatives related to the Province's revenue sources. The outcome of these initiatives will have a significant impact on its business over the next three years. These initiatives include:

• considering the recommendations from the Future Summit to ensure that the views of Albertans are heard and acted upon,

• developing and implementing a comprehensive revenue framework for the Province, and

• developing and implementing a comprehensive investment framework for the Province.

MINISTRY'S VISION
A province where government revenue policy and administration reflect the values of Albertans, balance present and future needs, and contribute to a stable environment for the generation of wealth for all Albertans.

MINISTRY'S MISSION
To provide prudent and innovative revenue, investment and risk management and to regulate the capital market in Alberta.

Note: In addition to the Revenue Department, the Ministry of Revenue includes the activities of the Alberta Heritage Savings Trust Fund, Alberta Heritage Foundation for Medical Research Endowment Fund, Alberta Heritage Scholarship Fund, Alberta Risk Management Fund, Alberta Heritage Science and Engineering Research Endowment Fund, and the Alberta Securities Commission. 

Alberta Revenue is committed to operating according to the following values. We will:

• act with integrity and in a fair and impartial manner;

• foster clear, open and courteous communications with clients and the public;

• achieve excellence in customer service;

• nurture a working environment that is characterized by teamwork, collaboration, and open communication; and

• be an innovative and adaptable organization that focuses on continuous improvement in the quality, effectiveness, and efficiency of our services and business processes.

The Ministry of Revenue has the following four core businesses:

1. Manage tax and revenue programs fairly and efficiently.

2. Manage and invest financial assets prudently.

3. Manage risk associated with the loss of public assets.

4. Regulate Alberta's capital market. 

CORE BUSINESSES, GOALS AND KEY STRATEGIES

CORE BUSINESS #1:  MANAGE TAX AND REVENUE PROGRAMS FAIRLY AND EFFICIENTLY

The Revenue Department establishes processes to ensure that Alberta's revenue structure meets the Province's long term needs and contributes to the development of tax and revenue policies and strategies.

The Department also administers tax, revenue and related benefit programs by:

1. registering entities for tax and tax exemption purposes and evaluating and processing tax returns and claims;

2. providing reliable and timely information about tax and revenue programs;

3. monitoring, promoting and, where appropriate, enforcing compliance with tax and revenue legislation and regulations; and 

4. collecting revenue and other amounts owing to the Province and making payments of refunds and rebates.

Link to Government Business Plan:
Goal 7 Alberta will have a prosperous economy.
Goal 12 Alberta will have a financially stable, open and accountable government.

CORE BUSINESS #2: MANAGE AND INVEST FINANCIAL ASSETS PRUDENTLY

The Revenue Department manages approximately $39 billion comprising a number of endowment funds, including the Alberta Heritage Savings Trust Fund, the public sector pension funds and other related funds.

Link to Government Business Plan:
Goal 12 Alberta will have a financially stable, open and accountable government.
 

CORE BUSINESS #3: MANAGE RISK ASSOCIATED WITH THE LOSS OF PUBLIC ASSETS

The Risk Management and Insurance Division (RMI) administers a program to protect, secure and preserve public assets against risk of accidental loss. RMI provides services to client ministries and agencies throughout government to help them identify, measure, control and finance the risk. The program serves all entities subject to the Financial Administration Act.

Link to Government Business Plan:
Goal 12 Alberta will have a financially stable, open and accountable government.
 

CORE BUSINESS #4: REGULATE ALBERTA'S CAPITAL MARKET

The mission of the Alberta Securities Commission is to foster the development of a fair and efficient capital market in Alberta and confidence in that market.

Link to Government Business Plan:
Goal 7 Alberta will have a prosperous economy.

KEY PERFORMANCE MEASURES 

PROVINCIAL TAX LOAD FOR A FAMILY OF FOUR 
This measure compares typical taxes, including provincial income, sales, payroll, fuel and tobacco taxes (excluding federal taxes), and health care insurance premiums payable by a family with two children earning $30,000, $60,000 and $100,000. The target is to have the lowest provincial tax load for a family of four in Canada.

Note: Other provinces’ rates known as of February 26, 2002
Source: Ministry of Finance

PROVINCIAL TAX LOAD ON BUSINESSES
This measure compares provincial tax load on businesses and includes business income taxes, capital taxes, and insurance corporation taxes. The target is to have the lowest provincial tax load on businesses in Canada.

ALBERTA HERITAGE SAVINGS TRUST FUND
The market value rate of return of the Heritage Endowment Fund, which includes income and realized/unrealized capital gains or losses, is targeted to exceed the rate of return of a passively invested benchmark portfolio.

Scotia Capital 91 day T-Bills Index: Reflects the performance of the Canadian money market as measured by investments in 91 day Treasury Bills.

Scotia Capital Universe Bond Index: Covers all marketable Canadian bonds with terms to maturity of more than one year. The purpose of this index is to reflect performance of the broad Canadian bond market in a manner similar to the way the TSE 300 represents the Canadian equity market.

TSE 300 Index: An index of 300 stocks, in fourteen subgroups, listed on the Toronto Stock Exchange designed to represent the Canadian equity market. It is a capitalization-weighted index calculated on a total return basis.

S&P 500 Index: Covers 500 industrial, utility, transportation and financial companies of the US markets, mostly New York Stock Exchange issues. It is a capitalization-weighted index calculated on a total return basis with dividends reinvested.

Morgan Stanley Capital International EAFE Index: An index of over 900 securities listed on the stock exchanges of countries in Europe, Australia and the Far East. The index is calculated on a total return basis, which includes reinvestment of gross dividends before deduction of withholding taxes.

Russell Canadian Property Index: An index comprised of institutionally held real estate investments consisting of over 1,100 properties distributed across Canada.

EXPENSE BY CORE BUSINESS

MINISTRY STATEMENT OF OPERATIONS

CONSOLIDATED NET OPERATING RESULT

Go to: Seniors Business Plan 2002-05

 

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