Accounts Receivable and Returns Compliance

Processing fairness requests related to accounts receivable and trust accounts programs

Target:

We aim to meet this standard 90% of the time.

Communication of this Standard:

• This standard is contained in the Agency’s Income Tax Information Circular C98-1R2 dated and revised December 3, 2006

Access Channel: Telephone; Mail/Fax; In Person

Delivery Channel: Mail/Fax

Background: The Agency’s Income Tax Information Circular, C98-1R2, tells taxpayers that they, or their authorized representative, can make a written request to their Tax Services Office/Tax Centre (TSO/TC) requesting that interest and penalties be cancelled or waived, provided the request meets specified criteria. In 2006-2007, over 75,000 written requests for taxpayer relief (i.e., the cancellation or waiving of interest and penalties) were processed Agency-wide. In some offices, taxpayer relief committees are in place to review all initial and secondary relief requests. Secondary requests are those which request a review of an unfavourable decision.

A timeliness service standard is in place for the portion of requests that are processed by the accounts receivable and trust accounts programs. This standard has remained unchanged since its implementation.

Performance: From 2003-2004 to 2005-2006, we estimated our results based on a rotational review of the taxpayer relief program in our TSOs and concluded from that information that we have been able to meet our goal of processing these types of taxpayer relief requests within four to six weeks 90% of the time. However, for the past two years no reliable performance information was available.

Complaint and Redress Mechanisms: If the taxpayer’s request for relief is not given a favourable outcome, the letter telling the taxpayer of the decision sets out the redress mechanism to initiate a review of the CRA’s decision. If advised on a second occasion that the request is denied, the taxpayer is informed of the right to a judicial review of the Agency’s decision(s).

If the service standard of four to six weeks is not met, the taxpayer could complain by phone or writing to the management of the local TSO/TC, or by writing to the Minister. If a taxpayer remains dissatisfied with a service provided by the CRA, he or she has the right to file a formal complaint, first with the CRA Service Complaints function then, if unresolved, with the Taxpayers’ Ombudsman for final and impartial review.

Monitoring: The Taxpayer Services and Debt Management Branch monitors revenue collections programs in the TSOs/TCs on a rotating basis. This means each TSO/TC is monitored approximately once every five years. At the time of the monitoring visits, the entire taxpayer relief program is reviewed, including the office’s progress at attaining the four to six weeks processing timeframe. The results of this review are published in the monitoring report at the conclusion of each TSO/TC visit. Self assessment of monitoring information has been identified as “Fair.”

Satisfaction Surveys: No taxpayer surveys have been conducted.

Future Considerations: The taxpayer relief registry system will undergo a major redesign, initiated by Appeals’ Taxpayer Relief and Service Complaints Directorate (TRSCD), that should be completed by April 6, 2009. With this redesign, it is anticipated TRSCD will be able to provide the reporting methodology for fiscal 2009-2010.