Thank you, Mr. Chair.
Thank you for the invitation to present the agency's 2017-18 supplementary estimates (B) and for the opportunity to address questions, as you say, that could come from a number of different sources, but as foreshadowed would include the eligibility requirements for the disability tax credit.
Through the supplementary estimates, the agency is seeking an increase of $44.9 million in its voted authorities for the following items.
First, the Agency is requesting $43.9 million to implement and administer various measures to continue its efforts to crack down on tax evasion and aggressive tax planning as announced in Budget 2017.
This includes new funding for GST measures aimed at preventing tax evasion and improving tax compliance to increase the number of audits of high-risk businesses. It also includes hiring additional auditors to review electronic funds transfers and to increase the number of large business and income audit teams to eight this fiscal year and up to 16 next fiscal year, targeting additional high-risk taxpayers, including multinationals. It includes as well the expansion of our business intelligence activities.
The $43.9 million we are requesting represents the first of five years under the proposed 2017 budget funding to crack down on tax evasion and aggressive tax planning.
The second item for which the Agency is seeking incremental funding is $1 million related to the Government advertising campaign on the new Canada Caregiver Credit.
The objectives of this campaign are to generate awareness of the new credit and to increase the number of eligible Canadians who claim it on their income tax returns. The campaign will also promote content on the Canada.ca website, which provides information about taxes and benefits.
Following the approval of these supplementary estimates, the agency's revised 2017-18 authorities will total $4.4 billion.
In summary, the resources sought through these estimates will allow the agency to continue to deliver on its mission to administer tax, benefits, and related programs, and to ensure compliance on behalf of governments across Canada.
Mr. Chair, I do thank the Committee for the opportunity to provide information about the administration of the Disability Tax Credit.
I'm very open to responding to questions that follow.
The disability tax credit, or DTC, is a non-refundable tax credit that provides tax relief for people living with disabilities or the family members who support them. The CRA remains committed to ensuring that all Canadians receive all the credits and tax benefits to which they are entitled, including the disability tax credit. The CRA is also responsible for ensuring that this non-refundable tax credit is administered fairly and in accordance with the Income Tax Act. Canadians expect the agency to do its due diligence to ensure that the individuals who receive benefits and credits, including the DTC, meet the requirements set out in the act.
Last year some 770,000 Canadians claimed the credit. The corresponding tax relief provided by the DTC as a result was more than $1.3 billion in 2016-17.
I'm happy to provide information year by year in writing after this meeting. Suffice it to say that we've seen the value and number of credits go up year over year.
As the minister mentioned in her opening remarks, the agency is reinstating the disability advisory committee to ensure that the views of a broad range of stakeholders are considered in the agency's decision-making process. Their perspectives will inform the CRA about how to present information in the DTC application so that it is clear to all applicants.
The CRA has a long history of consulting with Canadians and stakeholders on administering taxes and benefits in general and the DTC in particular. We use the feedback from these consultations to improve the way we administer the program and communicate any changes to Canadians through our outreach efforts.
For example, the agency’s web pages on the DTC feature easy-to-understand videos that outline various scenarios for individuals to determine whether they qualify for the DTC.
Through solid communications, both by listening and explaining, we continue to strive to improve the administration of our tax and benefits system in a manner that is fair and consistent with the relevant legislation. This is part of our broader objective to ensure that Canadians have trust and confidence in the administration of our programs and services.
At this time I would be pleased to answer any questions the committee members may have.
Thank you.