Goals, Objectives, Strategies and Results

Ministry Goals and their Linkage to the Five Great Goals

This section presents the ministry's goals and outlines how specific objectives, strategies and performance measures will move the ministry toward achievement of these goals.

The ministry contributes to the achievement of the Five Great Goals of the government's strategic plan. The ministry supports the government's goal to create more jobs per capita than anywhere in Canada by fostering the economic prosperity of small business, and implementing a modern regulatory system that makes it easier and more efficient for small business to operate in British Columbia. A modern regulatory system will be responsive to small business and individuals while protecting public health, safety and the environment.

In addition, the ministry manages revenues that fund the delivery of vital public programs and services including, healthcare, education, transportation and social services. These programs all contribute to the achievement of the government's Five Great Goals.

The following diagram demonstrates the linkages between the Five Great Goals and the goals, objectives and performance measures of the ministry.

Performance Plan

The ministry's performance plan describes the strategies that the ministry will employ to achieve its goals and objectives, and sets out the performance measures and targets by which the ministry will measure its success. The ministry will assess performance against established targets to inform decision-making processes, support timely operational changes and communicate progress towards ministry goals.

The ministry reviews performance measures on at least an annual basis to ensure measures continue to provide meaningful information, are representative of performance and reflect ministry priorities. Measures are replaced where and when appropriate, balancing the need for reliable information with reasonable cost. Performance targets are based on past performance trends, government priorities and a focus on continuous improvement balanced by available resources.

Small business is a significant driver of British Columbia's economic growth and is vital to the province's economic success. The ministry is committed to supporting a business climate in British Columbia where small business prospers.

This objective reflects the ministry commitment to implement initiatives that support small business success. A key initiative of the ministry will be to create a Small Business Strategy to enable British Columbia to become the most business friendly jurisdiction in Canada. The Small Business Strategy will include the establishment of a permanent Small Business Roundtable that will provide ongoing advice to government on the issues facing small business.

The ministry's strategies include enhancing the competitive environment for small business by improving coordination of small business activities across government and diversifying economic opportunities for small business in British Columbia by working with partners such as aboriginals, women, youth and ethnic groups. The ministry will participate in federal-provincial policy and program development, and identify and amend legislation, policies and regulations that inhibit small business growth. In addition, the ministry will encourage small business investment by raising the profile of small business opportunities, and will highlight and celebrate the contribution of small business to the economy and communities.

Performance Measure:

Establish a Small Business Roundtable: This measure reflects the importance of consultation to small business success and the ministry's commitment to establish a Small Business Roundtable in a timely manner.

The Regulatory Reform Initiative is a key component of government's strategy to increase British Columbia's economic and business competitiveness. Regulatory reform will minimize unnecessary government involvement in the lives of British Columbians and reduce the cost of doing business in British Columbia. Through a focused and responsible approach to regulatory reform, the province is moving toward a modern streamlined and simplified regulatory system that encourages innovation and opportunity, at the same time, preserving those regulations that are demonstrably effective in protecting public health, safety and the environment.

This objective focuses on increasing the province's economic and business competitiveness by improving the quality of the regulatory regime in British Columbia. Reviews and reforms of legislation, regulations and associated administrative policies are conducted with a view to modernize, streamline, harmonize, and eliminate redundancies. In 2001, Government directed that all new legislation and regulations be developed in compliance with the ten criteria of the Regulatory Reform Policy,¹⁰ which are based on internationally recognized principles of good quality regulatory design. Key strategies include leading regulatory reform throughout government by ensuring continued use of the Regulatory Reform Policy, and building the capacity within the public service for regulatory reform through activities such as developing guidance and resource materials, training, workshops, and conferences to share best practices.

Performance Measure:

Regulatory quality: The quality of new legislation, policies and regulations is measured through the use of a Regulatory Reform Policy checklist that is completed for all new and amended legislation and regulations, and approved by the minister responsible for the change. The criteria and checklist ensure that new requirements contribute to improving the overall regulatory environment in British Columbia.

This objective focuses on the reduction of regulatory burden in order to make it easier, faster and more efficient for individuals and businesses to deal with government. British Columbia's regulatory reform achievements have reduced the regulatory burden and created a more streamlined regulatory environment. This saves British Columbians time and money, and reduces administrative costs for government.

The government's strategy to minimize regulatory burden is to eliminate one regulatory requirement for every new one introduced, while improving regulatory quality.

Performance Measure:

Government-wide regulatory requirements: The ministry tracks the number of regulatory requirements across government to determine regulatory burden. Ministries and agencies are expected to maintain their June 2004 regulatory reduction achievements, with a target of a zero per cent net increase over the next three years.

Voluntary compliance is the most efficient and effective means of administering revenue owed to government. Successful revenue collection depends on the voluntary payment of financial obligations, balanced by audit, enforcement and collection activities. Improvements in voluntary compliance result in increased availability of funds to support government strategic goals and the 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 education 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 with the measure assessing collection of incremental revenue (see page 22). 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. Electronic payment systems are faster, easier to use and more cost effective than manual payment processing systems. It is expected that voluntary compliance will increase as more payment options are made available.

Key strategies include improving online services to businesses and individuals to make it easier to pay electronically, focusing education and awareness programs on areas of lower participation, and identifying and removing barriers, where possible, to the use of electronic payment options.

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.

A key strategy of the ministry is to provide customers with multi-channel access to educational materials that outline their financial obligations, filing due dates, methods of filing and payment, and contact information for questions. The ministry also provides information sessions, and timely statutory tax interpretation and ruling services. In addition, the ministry will examine ways to improve customer service including 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 payments: The ministry tracks the remittance of consumption taxes, property taxes, 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 3). 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:

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 and improvements to billing and collection processes. The latter will increase taxpayers' awareness of their financial obligations and should result in increased voluntary compliance.

Debt collections: This outcome measure reports on the amount of debt recovered through the ministry's collection activities. 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 Small Business and Revenue will impact performance over the next three years. 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 tax audit 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 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. They are not used to monitor individuals' performance.

Number of audits and reviews 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 and reviews to be performed over the three years of this plan is due to the reallocation of some auditors to portfolios requiring increased time and effort. This reallocation provides an opportunity for auditors to focus on other areas of non-compliance.

Average tax assessment per audit position: This measure reports on the average amount of incremental revenue generated by each audit position in the ministry. It provides a reasonable indication of the effectiveness of the audit program in targeting audit and enforcement activities on areas of non-compliance. The identification of incremental revenue supports the collection of all outstanding amounts owed to government.

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

Performance Measures:

The ministry uses two measures to demonstrate its commitment to implementing a collections program that supports British Columbians in receiving the debt recoveries they are due. These measures are used to assess overall and average ministry activity for the purposes of seting strategic direction and expenditure/resource allocation. They are not used to monitor individuals' performance.

Average recovery per tax collection position: This measure reports on the average debt recovery per tax collection position. It provides a reasonable indication of the effectiveness of the collections program in recovering outstanding revenue for government. As voluntary compliance increases over time and 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's tax collection activities. Performance of the ministry's private sector partner in relation to non-tax debt collection is reported as part of the ministry's debt collections result.

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.

The ministry is committed to meeting customers' needs by improving its regulatory and administrative frameworks. This will ease the administrative burden on customers, enhance the business climate within British Columbia and improve ministry efficiency.

The ministry will review the province's tax system to identify potential reforms that would maintain or enhance British Columbia's tax competitiveness. A key initiative of the ministry will be to undertake a comprehensive review of social service tax policies and legislation to develop revenue neutral options for simplifying, streamlining and enhancing fairness.

The ministry, through its alliance with a private sector service provider, will consolidate accounts receivable systems across government, and improve revenue management in the province. This includes the consistent application of policies and procedures, and the provision of current, accurate information on financial obligations that will reduce confusion and increase fairness and equity for customers.

In addition, the ministry will focus on improving business processes to support improved customer service. This includes reducing the time it takes to resolve an appeal by a taxpayer, completing the property assessment Review Panel process by March 31 of each year, and reviewing the property assessment and property appeal process to identify improvements.

This objective reflects the ministry's commitment to provide taxpayers with an impartial, fair and timely resolution to their appeals of tax and property assessments. Key strategies related to the tax appeals process include identifying and implementing process improvements to reduce the time it takes to produce a tax appeal final decision, and ensuring the allocation of adequate resources to support timely resolution. The ministry will review BC Assessment legislation and policies to identify and implement improvements to the property assessment and property appeal processes. The review will focus on improvements to customer service, and streamlining and simplifying assessment and appeal processes.

Performance Measure:

Elapsed time from receipt of tax 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. It will encourage creative and innovative solutions that improve operations and enable it to achieve its business objectives. The ministry is committed to provide its customers and clients with the best service possible. The ministry has two key initiatives related to this Goal:

• Develop performance measures and service standards that address the commitments set out in the Taxpayer Fairness and Service Code. These measures will be introduced in the 2006-07 Service Plan and will define the service standards that British Columbians can expect when dealing with the ministry.
• Implement a new Revenue Management System. This includes the transformation and consolidation of additional revenue management systems from across government into the new centralized system.

This objective focuses on providing the maximum benefit to the public through continuous improvement of business processes. Key strategies include implementing a consolidated revenue management system, continuing to leverage capacity and economies of scale to increase efficiencies, assessing and adopting leading revenue administration and management practices, and comparing the ministry's performance with other jurisdictional revenue management agencies.

Performance Measures:

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:¹¹ 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.