Introduction

Section 89 of the Canada Customs and Revenue Agency Act requires that Parliament undertake a review of the legislation five years after its coming into force:

“89. (1) Five years after the coming into force of this section, a comprehensive review and assessment of the provisions and operation of this Act must be undertaken by any committee of the House of Commons, of the Senate or of both Houses of Parliament that is designated or established for that purpose.

(2) The committee designated or established for the purpose of subsection (1) must submit a report to Parliament within a reasonable time after completion of its review and assessment.”

The Canada Customs and Revenue Agency Act was proclaimed on November 1, 1999, so the five year mark was reached on November 1, 2004.

This report is submitted to Parliament in the expectation that the parliamentary committee will wish to review the provisions and operation of the Act with a clear understanding of the legislation and its implementation, along with the consequences the legislation has had for the operations of the Agency and for the quality of its services. The Report is designed to help parliamentarians understand the government’s objectives in putting the Agency in place, the general scheme of the Act, and its accomplishments over the past five years. It does not present any proposals for amendment of the Act since the current provisions have been found to be appropriate for the Agency’s operations during these five years.

It is also important to note that the report deals only with tax administration and benefit programs that are currently the responsibility of the Canada Revenue Agency. When the Agency was created in November 1999, it encompassed both customs and revenue administrations. However, on December 12, 2003, the parts of the Canada Customs and Revenue Agency dedicated to the administration of customs statutes were transferred to the Minister of Public Security and Emergency Planning under the Public Service Rearrangement and Transfer of Duties Act. The decision to separate customs and trade services from the Agency and transfer these functions to the new Canada Border Services Agency was the result of the Government’s commitment to enhanced security through strong border protection. As a consequence, the Agency is now known as the Canada Revenue Agency (CRA). This Report only deals with customs administration to the extent necessary to explain the overall functioning of the Agency since its establishment.