Right now.
Evidence of meeting #38 for Finance in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was cra.
A recording is available from Parliament.
Evidence of meeting #38 for Finance in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was cra.
A recording is available from Parliament.
5:05 p.m.
Conservative
5:05 p.m.
Conservative
5:05 p.m.
An hon. member
That gives us 12 minutes to get back.
May 28th, 2014 / 5:05 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Thank you, Mr. Chair. I am going to split my time with Mr. Cullen.
I'd like to discuss an article that came out yesterday in La Presse about the tax debt, in other words, unpaid taxes. You probably read it.
Last year, the tax debt was $31 billion, and $29 billion the year before. That represents a $2-billion increase. A CRA spokesperson attributed the increase to the harmononization of the GST and population growth. But the amount owing in 2005-06 was $18.5 billion, which means the tax debt has gone up nearly 80% over 8 or 9 years.
Are the harmonization of the GST and population growth really the only reasons for the increase? Hasn't a staffing shortage made it difficult to stay on top of recovering unpaid taxes before the 10-year limit expires, after which point the money can no longer be collected?
5:05 p.m.
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
Thank you for the question.
I don't know all the details or the reasons. But what I can say is that the overall increase in income is obviously one of those reasons, and the tax debt has gone up as a result.
I can assure you that, every year for the past few years, the CRA has been reallocating funding to strengthen its recovery capacity.
I'd also like to point out that, according to an international study of 10 major countries conducted by Capgemini, the Canada Revenue Agency is among the top two organizations in terms of its ability to recover tax debt as a percentage of income and the cost of collecting every unpaid dollar. The CRA's recovery costs are among the lowest.
We also responded to a debt recovery audit by the Auditor General by changing certain procedures to ensure the portfolio remains at acceptable levels.
5:05 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Thank you, Mr. Huppé.
I'm not questioning the CRA's productivity. I know its productivity numbers are quite good. But the fact remains that we're talking about a rather dramatic increase. Income has indeed gone up since 2005-06, but not as much as unpaid taxes have. Surely, there's a problem somewhere.
Perhaps the CRA's great productivity—and I do think it is good—is due to a lack of staff. If the agency had more staff, it could be more effective, recovering tax debt and ensuring that all Canadians pay their fair share.
5:05 p.m.
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
Forgive me, but I don't have all the information as to the reasons. But I can tell you that income has increased significantly.
We strive to be as effective and efficient as possible with the staff we currently have. As I said earlier, every year for a number of years, we have been reallocating a considerable amount of money to the group in charge of recovery.
5:10 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Thank you very much.
Since we have a limited amount of time, I am going to hand the floor over to Mr. Cullen.
5:10 p.m.
NDP
Nathan Cullen NDP Skeena—Bulkley Valley, BC
Thank you kindly.
In 2013, CRA had 3,000 data breaches. A little less than 1% of those were reported to the Office of the Privacy Commissioner. Why was that number so low?
5:10 p.m.
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
There are different types of data breaches. Obviously not all data breaches are actually privacy breaches. The number you're referring to—around 3,000—is probably 2,983. That came out in a question. Forty-six per cent of those were actually privacy breaches. That's the first part.
The second part is that we have a rigorous process in place whereby we analyze each one of the cases. Depending on the case and the risk it brings to the taxpayer, a decision is made as to whether the taxpayer gets advised and it gets reported.
I don't want to get into details, but there are obvious cases in which there is absolutely no risk.
5:10 p.m.
NDP
Nathan Cullen NDP Skeena—Bulkley Valley, BC
The Auditor General talked about undisputed and unpaid taxes in Canada last year totalling $29 billion. Revenue Canada committed to a national strategy some years ago. Can you give us an update on that? Has that strategy been made public yet?
5:10 p.m.
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
I'm not sure. What I could tell you regarding a national strategy is that it has been put in place. We attack it from what we call a national inventory which is in place. Regardless of where the collection officer, for example, resides, when he starts to work on a new case, he'll get the next best case in terms of the biggest bang for the dollar on a national basis.
5:10 p.m.
NDP
Nathan Cullen NDP Skeena—Bulkley Valley, BC
Sure.
Because our time has been limited here, is it okay if committee members who have further questions submit written ones through you?
5:10 p.m.
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
Absolutely.
5:10 p.m.
NDP
Nathan Cullen NDP Skeena—Bulkley Valley, BC
Thank you.
What is the current status of the special enforcement program that was set up to directly go after organized crime? Does it still exist?
5:10 p.m.
Assistant Commissioner, Compliance Programs Branch, Canada Revenue Agency
Thank you, Mr. Chair, for the question.
The special enforcement program was an area that dealt with assessments coming out of illegal activities. The best example would be grow ops. It doesn't deal with organized crime. Organized crime and actions that come out of that are under our criminal investigations directorate, which still exists and which is in our branch.
We have taken the old special enforcement program and merged that with our other two directorates, for either income tax or GST. The files are still worked on but just by different people.
5:10 p.m.
NDP
Nathan Cullen NDP Skeena—Bulkley Valley, BC
Okay.
I have a question about the complaints process that goes on when someone wishes to register a complaint against a charity. Is that a public process? Do we know how the system works? I assume it's from outside groups, or is it an internal Revenue Canada decision to investigate a charity?
5:10 p.m.
Assistant Commissioner, Canada Revenue Agency
It's an internal decision based on a variety of information sources—letters from MPs, letters from individuals, and other charities.
5:10 p.m.
NDP
Nathan Cullen NDP Skeena—Bulkley Valley, BC
Is that process made public in terms of the complaints that come in to the CRA?
