Performance Reporting — Continued

Goal 1 — Maximize voluntary compliance

Voluntary compliance means taxpayers are taking responsibility to pay their obligations without requiring the ministry to pursue payment. Voluntary compliance is the most effective and efficient means of collecting revenue and debt. The ministry measures its success in achieving this goal in a number of ways, including reporting on the percentage change in the number of on-time payments and the number of "visitors" to its Web site. Increases in these areas indicate a greater understanding by taxpayers of their obligations and their understanding of how and where to gain further information.

The three objectives measured under this goal represent a common theme in tax administration. The provision of educational material in printed or electronic form provides the taxpayer with a clear understanding of their obligations, filing due dates, methods of filing and payment and contact information for questions. By providing educational services to taxpayer, the percentage of on-time filing remains very high. In addition, performing audits provides a strong non-compliance deterrent.

Core Business Area	Objectives	Performance Measures	2002/03 Targets	2002/03 Actual	Explanatory Notes
Revenue Programs	Taxpayer and clients obtain accurate and timely information on their obligations	Percentage of on-time payments	85%	85%	Note 1
	Maximize use of new electronic technologies to facilitate ease of transactions	Number of annual visitors to Web sites	320,000	500,000	Note 2
	Simple, transparent mechanisms and incentives to file information reports and make payments	Number of audits performed	145,000	194,104	Note 3

Note 1:	On-time filing percentage means of the number of tax returns issued, 85 per cent were returned on time and no further compliance work was required.
Note 2:	Number of annual visitors to Web sites represents the number of times our Web sites were visited during the reporting period. The reporting service built into the Web sites counts the visits but does not exclude repeated visits nor do they exclude ministry staff visits. This measure should be considered as an output measure of activity.
Note 3:	The ministry has increased the number of audits performed. Audits provide the taxpayer with a clear understanding of their tax obligations and serve as a strong non-compliance deterrent.