Appendix 1. Strategic Context

Vision, Mission and Values

Our Vision

We will be the centre of excellence for revenue and debt collection in government.

Our Mission

We provide fair, efficient and equitable revenue and debt collection which supports public services to meet the needs of British Columbians.

Planning Context

The Ministry has developed its service plan within the context of both internal and external factors that ultimately affect the amount of revenue collected by government.

Context¹

The ability of the Ministry to achieve its goals and objectives is to some extent dependent upon the performance of the provincial economy as a whole. Increases in tax revenues and success in the collection of overdue amounts increase with a vibrant and growing provincial economy. The BC economy grew 1.7 per cent in 2003, slower than the 2.7 per cent expected at the time of last year's budget, according to BC's independent economic forecast council. The Council now expects growth in BC's economy to pick up to 2.9 per cent in 2004. Further information on the BC outlook may be found in the Budget and Three Year Fiscal Plan released with the budget.

Provincial revenues are also affected by changes to taxation policies (tax rate reductions or exemptions). For example, the implementation of competitive personal and corporate taxes, the elimination of the corporate capital tax and creating exemptions from the provincial sales tax for investments in production machinery have reduced revenues owed to government. These changes to tax policy are not determined by the ministry but are part of a broad government commitment to improve the performance of the provincial economy.

Also, the ability of the ministry to realize its mandate to collect all revenues due to government relies upon the ability of service providing ministries and agencies to collect and provide accurate and reliable accounts receivable information to the ministry.

It is expected that low interest rates will continue to contribute to increased consumer spending in the durable goods sectors such as automobile and housing sales. These sales have increased the amount of monies collected through the provincial sales tax and the property transfer tax.

Oil and gas exploration and development have also provided unanticipated higher royalty revenues. These increased revenues have been offset, to some extent, by lower corporate and personal income tax revenue.

Revenues from the forestry industry have increased in recent years primarily due to higher than expected harvest volumes. Harvest volumes under the Small Business Forest Enterprise Program are expected to continue to increase.

Challenges

Much of the Ministry's activities are dependent on events, actions and decisions which occur outside the Ministry. The Ministry does not control the tax or receivable policy decisions which impact compliance or take-up. Similarly, the Ministry does not make decisions regarding eligibility or credit-worthiness. The Ministry is not responsible for program design, or collection of identifying information about the customers and clients of other ministries.

However, all of these factors impact on the amount of revenue and receivables and the quality of information provided to the Ministry, and ultimately, the ease with which the Ministry is able to exercise its mandate. For example, while rate changes often impact compliance with payment of debt obligations, the Ministry does not influence those decisions, which are made in accordance with client ministry public policy objectives. The ministry will, however, continue to partner with ministries and agencies to reduce non-compliance of debt obligations.

Recent changes to the provincial taxation regime including the implementation of competitive personal and corporate taxes, the elimination of the corporate capital tax and creating exemptions from the provincial sales tax for investments in production machinery and equipment are targeted to promote the development of a vibrant provincial economy. However, these changes also reduce the revenues owed to government, which challenges the Ministry to better identify and collect revenues and receivables to support Government objectives.

Highlights of Strategic Shifts and Changes from the Previous Service Plan

The Ministry is on track to achieving the key components outlined in the 2002/03 to 2004/05 Service Plan published last year. A major development from last year is significant progress towards implementing the Revenue Management Project. This project will transform the management and collection of government receivables.

Other major changes from previous service plans are the refinement and development of new measures to better report on Ministry achievements in a clear and transparent manner. It is anticipated that as a result of RMP, there will be further changes in next year's plan, as new data sources and calculations become available. The changes and rationales are described in Appendix 2.

Consistency with Government Strategic Plan

Links to the Government Strategic Plan

The Ministry of Provincial Revenue, through revenue and debt administration and collection, works to support and strengthen key Government goals. The Ministry supports the government goals in the following way:

Goal 1: A strong and vibrant provincial economy.

A thriving private sector economy that creates high-paying job opportunities.

• Reduced regulatory burden in understanding and meeting tax and debt obligations.

The fastest growing technology industry in Canada.

• Development of the Revenue Management Project, which will transform the management of accounts receivable in government to develop an integrated, streamlined business and systems environment which enables consolidation of revenue management, as well as taking advantage of the extensive knowledge and abilities of our chosen private sector partner.

Greater equity and equality for British Columbia in Canada.

• Fair and equitable tax administration and collection which levels the playing field for all British Columbians and businesses operating in British Columbia.
• Represents British Columbia with the Canada Revenue Agency and holds Canada Revenue Agency accountable for tax administration for the Province.

Responsible, accountable management of public resources and tax dollars.

• This year's Service Plan contains clearer and more transparent performance measures and targets to ensure the Ministry is optimizing its resources and maintaining a high level of accountability for how it manages revenue and debt administration and collection.

Goal 2: A supportive social fabric.

• It is the revenue and receivables administered by this Ministry which supports the programs and initiatives that British Columbians value and expect, including a high quality health care system, and a top education system.

Goal 3: Safe, healthy communities and a sustainable environment.

• Reducing overdue accounts receivable ratios and receipt of the revenue due to the government will allow the Province to better support communities and the environment.