Goals, Objectives, Strategies and Results

This section presents the ministry's goals and outlines how specific objectives, strategies, performance measures and targets will move the ministry toward achievement of these goals. The following diagram demonstrates the linkages between the government strategic goals and the goals, objectives and performance measures of the ministry.

Government Strategic Goals		Ministry Mission The ministry provides fair, efficient and equitable revenue and debt collection that supports public services to meet the needs of British Columbians.
		Ministry Goals		Ministry Objectives		Performance Measures/Indicators
A strong and vibrant provincial economy.		1. Maximize voluntary compliance.				Revenue administered without intervention.
				1. Maximize use of new electronic technologies to facilitate ease of transactions.		Revenue received through electronic payments.
				2. Customers understand their obligations and entitlements, and pay the correct amount on time.		On-time tax payments.
		2. Collection of all outstanding amounts owed to British Columbians.				Incremental revenue.
						Debt collections.
				1. British Columbians receive the revenue they are due.		Number of audits performed.
						Average assessment per audit position.
				2. British Columbians receive the debt recoveries they are due.		Average recovery per tax collection position.
						Percentage of Total Government accounts receivable more than 90 days overdue.
		3. Fair, efficient and equitable administration that meets customers' needs.		1. Improve the tax appeals process for administrative fairness and due process.		Elapsed time from receipt of appeal to final decision.
		4. Continuous performance improvement and accountability.		1. Continuously improve and simplify work processes.		Receipt to deposit turnaround time.
						Cost per transaction.
						Cost to collect $1 of debt.
		5. Highly skilled, motivated and innovative employees.		1. Motivated and innovative employees.		Percentage of employees with Employee Performance and Development Plans.
						Annual employee survey results (training, morale).

Voluntary compliance is the most efficient and effective means of collecting revenue owed to government. Successful revenue collection depends on voluntary payment of financial obligations, balanced by audit, enforcement and collection activities. Improvements in voluntary compliance result in increased revenue available to support government strategic goals and provision of vital government programs. Providing complete, clear, accurate and timely information to customers to help them understand and meet their financial obligations continues to be a priority for ministry educational and outreach efforts. In addition, the ministry is working to make it easier for customers to make payments through electronic means.

Performance Measure:

Ministry revenue administered without intervention: This outcome measure reports on the percentage of ministry revenue that is identified by the ministry or self-assessed by individuals and businesses, without audit intervention. Seemingly minor increases in performance translate into the potential for millions of dollars in voluntary payments. However, this measure is inter-dependent on the measure assessing collection of incremental revenue (refer to p. 12). When more incremental revenues are assessed, voluntary compliance is lower and when voluntary compliance increases, incremental revenues are lower. Predicted increases in voluntary compliance are predicated on decreases in incremental revenues resulting from changing tax regimes and improved revenue management processes.

The ministry is maximizing the use of electronic processes to facilitate payment of monies owed to government. It is expected that voluntary compliance will increase as payment options are expanded. Key strategies include improving online services to businesses and individuals to make it easier to make electronic payments and increasing avenues for customer self-service through online access to information that clarifies tax and debt obligations.

Performance Measure:

Revenue received through electronic payments: This outcome measure is used to track the replacement of physical payments with electronic payments. This measure provides a reasonable indication of the success of e-service initiatives by monitoring the public's use of the suite of electronic options available for tax and other payments.

This objective supports voluntary compliance by identifying and implementing quality customer service initiatives that promote and respond to customers' needs in order to make it easier for individuals and businesses to identify and meet their financial obligations to government. It is expected that voluntary compliance will increase if there is an understanding and acceptance of these obligations. Key strategies include the provision of information sessions, timely statutory interpretation and ruling services, and multi-channel access to educational materials that provide British Columbians with a clear understanding of their obligations, filing due dates, methods of filing and payment, and contact information for questions. In addition, the ministry will continue to simplify and minimize the burden of compliance, and will improve customer service through the development of a single contact centre to handle the majority of customer interactions for tax and other revenue and benefit programs.

Performance Measure:

On-time tax payments: The ministry tracks the remittance of consumption taxes, rural property tax and mineral, oil and gas taxes and royalties, calculating the percentage that are paid on or before their legislated due date. This outcome measure provides a reasonable indication of taxpayers' understanding of their financial obligations and their willingness to comply with them.

The ministry undertakes audit, enforcement and collection activities in order to recover outstanding monies owed to British Columbians, and to promote fairness and equity by leveling the playing field for the majority of taxpayers who are meeting their financial obligations voluntarily. These activities assist in identifying monies owed, ensure amounts owed are collected, deter customers who might otherwise avoid paying, and educate taxpayers and debtors on their obligations. The education of taxpayers and debtors on their obligations and the deterrent effect of audits also contribute to increasing voluntary compliance (Goal 1). Successful audit, enforcement and collection activities ensure that monies owed to British Columbians are identified, recovered and made available to address government strategic priorities and deliver vital public programs.

Performance Measures:

The ministry uses two measures to demonstrate the outcomes of the audit, enforcement and collection work performed by the ministry.

Incremental revenue: This outcome measure reports on the amount of revenue, primarily from taxes, identified as owed to government as a result of ministry intervention. Future years' achievements will decline due to changes in the tax regime (e.g., the phase-out of the Corporation Capital Tax for general corporations) and improvements to billing and collection processes that will increase taxpayers' awareness of their financial obligations which should, in turn, result in increased voluntary compliance.

Debt collections: This outcome measure reports on the amount of debt recovered through the ministry's collection activities. Performance over the next three years will be impacted by more effective business processes supporting the consolidation of debt portfolios, the consistent application of early intervention across collection portfolios and the transfer of debt portfolios from other ministries to the Ministry of Provincial Revenue. Over time, the trend in debt collections will be one of decline as outstanding debt is collected and voluntary compliance increases.

This objective focuses on identifying revenues owed to British Columbians and ensuring that taxpayers understand and meet their financial obligations. The ministry's audit program undertakes compliance and enforcement activities to ensure individuals and businesses are meeting legislated requirements. The ministry focuses efforts in those areas where non-compliance is highest. Audit selection size and content varies from the review of grants, tax expenditure and exemptions and compliance with legislation, to the examination of financial records and legal documents. A substantial amount of revenue is derived from out-of-province audit assessments to ensure that British Columbia businesses are not at a tax disadvantage compared to their out-of-province counterparts operating in the province. Key strategies include adequate resourcing of the tax audit and enforcement functions, continued improvement to the timeliness of assessment practices, and improved collaboration and accountability across jurisdictions to pursue joint tax enforcement activity.

Performance Measures:

The ministry uses two measures to demonstrate its commitment to implementing an audit and enforcement program that supports British Columbians in receiving the revenue they are due. These measures are used to assess overall and average ministry activity for the purposes of setting strategic direction and expenditure/resource allocation, but are not used to monitor individuals' performance.

Number of audits performed: This output measure provides a reasonable indication of the level of effort the ministry is employing to support this objective. The slight decrease in the number of audits to be performed over the three years of this plan reflects the reallocation of some auditors to portfolios requiring increased effort, with the result being fewer audits performed. This reallocation provides an opportunity for auditors to focus on other areas of non-compliance.

Average assessment per audit position: This measure tracks the success of the audit program in identifying monies owed to government.

The ministry undertakes collection activities to obtain repayment of outstanding amounts owed to British Columbians. The ministry's success in collecting outstanding debt reduces overdue receivables and provides funding for government programs. Key strategies include focusing resources on collection activity and continuing to improve revenue recovery tools and approaches.

Performance Measures:

Average recovery per tax collection position: This measure tracks the success of the tax collection program in recovering monies owed to British Columbians and is a reasonable indicator of the level of resources focused on tax collection activity. As voluntary compliance increases over time and outstanding debt is collected, the average recovery per tax collection position will decline. This measure formerly addressed both tax and non-tax collection but has been modified to reflect on the effectiveness of ministry tax collection activities. Performance of the ministry's private sector partner in relation to debt collection is reported as part of the ministry's debt collections target (refer to p. 12).

Total government accounts receivable more than 90 days overdue: This outcome measure reports on the percentage of debt owed to government that is over 90 days past due. As the ministry is not directly responsible for all government receivables, the success it achieves in reducing the overdue debt under its administration contributes to improvement in the overall measure. The ministry is focusing on reducing outstanding receivables and cost effective debt collection (see Goal 4).

The ministry is committed to meeting customers' needs by improving the regulatory and administrative frameworks for tax and debt collection. The ministry will continue to streamline and simplify processes to ease the administrative burden on taxpayers and will review the province's tax system to identify potential reforms that would maintain or enhance British Columbia's tax competitiveness. The ministry will work with a private sector partner to consolidate accounts receivable systems across government to improve revenue and debt administration and management in the province. This includes the consistent application of policies and procedures and the provision of current, accurate information on financial obligations. In addition, the ministry will identify and implement opportunities for deregulation and regulatory reform³ and reduce the time it takes to resolve an appeal by a taxpayer.

This objective reflects the ministry's commitment to provide taxpayers with an impartial, fair and timely resolution to their appeals of tax assessments. Key strategies include identifying and implementing process improvements to reduce the time it takes to produce a tax appeal final decision and monitoring the incoming volume of appeals to ensure the allocation of adequate resources to support timely resolution.

Performance Measure:

Elapsed time from receipt of appeal to final decision: This measure tracks the ministry's success in providing a timely resolution to taxpayer appeals, with the goal being continuous improvement.

The ministry continues to strive for improved performance and customer service. The ministry will encourage creative and innovative solutions that improve operations and enable it to achieve its business objectives.

This objective focuses on providing the maximum benefit to the public through continuous improvement of business processes. A key strategy is to realize business efficiencies through the implementation of an integrated, streamlined business and systems environment that enables consolidated revenue management across government. The ministry will also continue to leverage capacity and economies of scale to increase efficiencies, assess and adopt leading revenue administration and management practices, and compare its performance with other jurisdictional revenue management agencies.

Performance Measures:

Under this objective the ministry has identified performance measures that are reasonable indicators of organizational efficiency. The ministry is committed to improving the performance of billing, receivables and collections functions.

Receipt to deposit turnaround time: The ministry tracks the duration between when a payment is received and when it is deposited to the government's account. Reducing the period of time between the receipt and deposit of funds demonstrates an improvement to the ministry's cash management processes.

Cost per transaction: The ministry is committed to reducing transaction costs. To track progress in this area, the ministry collects transaction cost and volume data and reports on the cost per transaction.

Cost to collect $1 of debt: The ministry is also committed to maintaining efficient processes and procedures to collect debt owed to government. The ministry calculates and reports on the cost to collect $1 of debt.

In order to realize its vision — to be the centre of excellence for revenue and debt collection in government — the ministry relies on the strengths, skills and commitment of its employees. The ministry will continue to support a learning environment with employee development focused on key competencies, leadership development and succession planning. Managing change, and the new roles and responsibilities employees will take on as the ministry enters into a partnership with a private sector firm, will also be a priority. The ministry will continue to assess the level of employee engagement using the results of employee surveys.

This objective reflects the ministry's commitment to fostering a work environment that makes it an employer of choice; attracting, developing and retaining highly skilled, motivated and innovative employees who support the continued achievement of the ministry's goals and business objectives.

A key strategy is to implement a Human Resource Plan (HRP) that supports the strategic direction of the government corporate human resource plan and addresses ministry priorities. As an effective people strategy, the HRP will identify strategies to provide employees with opportunities to develop the knowledge and skills they need to do their work and advance in their careers, build a common understanding of ministry roles, purpose and vision, develop leaders, and encourage an innovative and creative workplace that supports the continued achievement of business objectives in a changing environment.

Performance Measures:

Under this objective the ministry has identified performance measures to assess its effectiveness in developing highly skilled, innovative and motivated employees whose dedication to excellence is the foundation for achievement of business objectives.

Employee Performance and Development Plans: Achieving the ministry vision requires employees to understand how their performance and development contributes to the achievement of ministry service plan goals and objectives. To support this understanding each permanent employee, who has been in their position for six or more months, will have an individualized Employee Performance and Development plan (EPDP).

Training and development: The level of employee satisfaction with training and developmental opportunities is used to assess the ministry's effectiveness in achieving this objective. The goal is to maintain, in a time of significant organizational change, the level of satisfaction achieved in the 2003/04 annual ministry employee survey.

Employee morale: Since the ministry's creation, the high level of employee morale has contributed to the ongoing achievement of ministry performance objectives. The goal is to maintain the high level of morale reported in the 2003/04 annual ministry employee survey.