Evidence of meeting #3 for Finance in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was money.
A recording is available from Parliament.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Okay, that's fine. But since you brought it up and given the fact that you were consulted prior...would there not have been any additional estimates required in these estimates for the budget that was tabled?
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
When I say we were consulted, that means a week or two weeks beforehand. Those consultations are conversations, discussions. No hard-core work is done, and no systems changes are done until the budget is tabled and Parliament has had an opportunity to get at it.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Okay, so we'll see them either in the main estimates or in the upcoming supplementaries.
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
You will see them in supplementary estimates later this year and then in the main estimates to the extent there is a follow-on cost.
Conservative
The Chair Conservative James Rajotte
Thank you, Mr. Pacetti.
I have just a couple of questions.
Following up on what Ms. Block and Mr. Mulcair were asking on the financial interoperability and stewardship initiative, just so I can fully understand why this was not budgeted for in previous assessments, why is it in the supplementary estimates (C)?
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
Basically Treasury Board wanted to open the opportunity for departments to put forward any cases they had under the objectives of the FISI program, and they reviewed these over the course of the fall and made decisions on them in December. Given that, it was too late to get them into the main estimates.
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
I believe it was announced in budget 2006.
Conservative
The Chair Conservative James Rajotte
Will this help in terms of tax compliance, tax avoidance issues, some of the issues that Mr. Carrier raised?
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
Speaking frankly and directly, no. It will help us indirectly, because it is going to mean we'll become more effective, more efficient in our administrative systems, and to that end it would allow us to realign some of our budget in the future into other sharp-end programs such as the compliance programs.
Conservative
The Chair Conservative James Rajotte
I have one final question. This committee actually toured the centre in Prince Edward Island, and we did sort of get a sense of how CRA is going much more electronic. I know it is broader than the supplementary estimates (C), but can you speak to that in terms of information that is being collected from Canadians and what your plans are for going more electronic and reducing the amount of paper that CRA is taking in and sending out?
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
I'll start. Perhaps my colleague can finish.
A good example is that 58% of our T1 returns are coming in electronically now. On the T2 returns, our corporate returns, the electronic transmissions are not as high, but the addition a few years ago of the 2D bar code for the T2 returns for anybody using any of the software packages has meant that 90% of our T2 returns are now coming in either electronically or with the bar code.
One example is that we received a submission last week, I was advised, which in the old days would have taken us four and a half days to move from paper to our own systems. With the bar code, they are able to do it in 20 minutes.
These are examples of the move and now we're starting to expand it. We're starting to require organizations sending information to us to send it electronically--not just the taxpayers' returns but the actual information slips. It certainly is the direction we're moving in.
Conservative
The Chair Conservative James Rajotte
Thank you. I certainly appreciate that. We did see that at the centre, and I have to say that in my personal experience I've had a very good experience with CRA in that measure.
Colleagues, I have no further questions.
Do members have further questions?
Monsieur Carrier.
Bloc
Robert Carrier Bloc Alfred-Pellan, QC
I have a short question, Mr. Chair.
It concerns the figures you provided to us about the payments to the provinces under the Softwood Lumber Products Export Charge Act. I assume that these payments are being made in accordance with the softwood lumber agreement with the United States, but I would like you to confirm that for me and also to explain how this works. Does the amount that you are transferring as a payment correspond to the amount that you will be collecting? I'd like you to clarify that for us, while we have you here.
Deputy Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
Mr. Chair, as it relates to the softwood lumber amount, the amount in question that's reflected, the $429 million, is indeed a forecast of the expected payments to the provinces.
However, that said, the actual payment for 2009-10 is expected to be in and around $188 million. The variance is obviously adjusted in our budget in the main estimates. So the number you're quoting in referencing the $429 million is a forecast at the beginning of the year, and I just wanted to ground that forecast with the real number, which is expected to be $188 million. In 2008-09, just as a point of reference, it was $180 million to the provinces.
Bloc
Robert Carrier Bloc Alfred-Pellan, QC
Does this correspond to the amount that you collect from export firms and transfer to the provinces? That's what I would like you to clarify for us.
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
We'll have to get back to you, sir, on the actual amount of money we collected. By the definition of the program, the money we collect, minus some administrative charges, is then sent back out in payments to the provinces, so by definition it has to be larger, but I can give you the exact numbers later. I'll send them through the clerk.
Bloc
Robert Carrier Bloc Alfred-Pellan, QC
Mr. Chair, since we are talking about providing some information, my two earlier questions concerning options to purchase and cigarette smuggling may not have been clear. The departmental officials agreed to provide us with the information we requested. I'd like some confirmation of that. It was not clear. Mr. Wallace indicated that we might discuss these matters later, but it would be better if departmental officials could get this information to us, rather than have another discussion at another meeting. Can we agree on this course of action?
Conservative
The Chair Conservative James Rajotte
Well, we can certainly do that, or certainly I as the chair can submit that to the department and the minister and ask for a full statement. I don't know whether Mr. O'Connor would be able to provide that information. I believe it would be someone else in CRA.
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
That is correct.
Conservative
The Chair Conservative James Rajotte
So as the chair, I will ask for that information on your behalf and on behalf of the committee.
Conservative
The Chair Conservative James Rajotte
Merci.
I want to thank you, gentlemen, for coming in today and appearing on the supplementary estimates (C). I appreciate your attendance here, your presentation, and your responses to our questions.
Thank you very much.