Thank you very much, Mr. Chairman.
Thank you for giving me this opportunity to bring you up-to-date on the activities at the Canada Customs and Revenue Agency.
It's a pleasure to introduce the deputy commissioner, François Guimont. Also at the table with me are Monsieur Denis Lefebvre, who is the head of customs, and our chief financial officer, Mr. Stephen Rigby.
If there are questions for our other officials, I will introduce them as they come to take their place.
The agency's 2003-04 main estimates of $3,662.300,000 reflect an increase of $298.5 million, or 8.9% over last year's main estimates of $3,363,800,000, in the amount the agency is seeking from Parliament.
Since my appearance before this committee last May, the CCRA has made significant progress on many fronts. Let me say, Mr. Chair, I believe we have a record of achievement. Let me start by updating you on some of the customs programs speeding up the flow of low-risk legitimate trade, while detecting high-risk individuals and illegal contraband. Thanks to our thousands of customs employees, these programs strike a balance between security and facilitation.
We meet with both our American counterparts and industry regularly to continue the development of a smart border. After all, cross-border trade is worth $2 billion a day. It is pretty clear that we need to build bridges, not barriers.
FAST and NEXUS are examples of security programs streamlining border crossings for low-risk commercial shipments and travellers, while enhancing security. Applicants undergo thorough security checks and are pre-screened as secure, low-risk program members in both countries.
Free and Secure Trade, or FAST, allows commercial shipments to clear customs before they arrive at the border. Already, 13 major importers, 200 carriers, and over 10,000 drivers have applied to the FAST program.
NEXUS is tailored for frequent low-risk travellers; and more than 39,000 are already pre-participants. In fact, I saw our most recent note yesterday, showing that just over 40,000 have been approved in the program, and we're processing some 49,000 applications.
Advanced Passenger Information, or API, is now in place at airports for sharing information on potentially high-risk individuals. It includes the pilot testing of joint passenger analysis units, made up of officials from Canada and the United States. Currently operating in Vancouver and Miami, these pilot projects are now beginning their evaluation phase.
We are becoming more technologically advanced in our operations. For example, we us large-scale gamma ray machines to detect contraband, weapons, and other potentially dangerous goods. This is done without opening containers and exposing employees to their contents.
One of the things I am particularly proud of, Mr. Chair and committee members, is the CCRA's government online achievements. Turning to our services, we are all proud of our government's online achievements, but as you may know, Canada was recently rated number one in e-government by Accenture. The CCRA was cited in the study as a leader in e-government innovations and innovative practices. We are in fact a leader in the Government of Canada, and therefore around the world.
We've attempted to create a continuous improvement environment. For example, CCRA continually finds ways to improve our online services and to make them more accessible to Canadians. This year we added new features to the EFILE online program for tax professionals. Now up to 60 returns can be transmitted at once. As well, a program function has been added that provides immediate notification of outstanding balances and other important client information.
As part of our small business information centre, we launched a website for smaller and medium-size importers, with the information and tools they need to comply with customs commercial processes.
As an aside, the scientific research and experimental development program continued to support industrial research and development in the last year. It provided $1.5 billion annually in investment tax credits to Canadian innovators.
Looking ahead, it is reasonable to expect further enhancements to border management.
Now that I've outlined where we've been, I'd like to take a moment to map out where we are going.
The CANPASS-Air program is being implemented at Vancouver International Airport, and then the plan is to roll it out to seven other major Canadian airports later this year. Next, using iris recognition technology, the CANPASS-Air will speed up customs clearance for low-risk, pre-approved travellers. I remind you that CANPASS-Air is one way into Canada. NEXUS-Air is a two-way program, and our hope is to pilot it in Vancouver, going two way between Canada and the United States.
Next April, a 24-hour advance notification rule for marine importation will be implemented. It will require ocean carriers and marine forwarders to submit data to customs 24 hours prior to loading in a foreign port. We also have plans to purchase devices to detect radiation inside marine containers before they are opened or inspected.
We're also committed to enhancing and ensuring the integrity of the tax system, which is part of our mission. On the revenue side, a main priority of the Canada Customs and Revenue Agency is to ensure the integrity of the tax system. When it comes to complying with Canada's tax laws, the vast majority of Canadians voluntarily file their taxes each year. However, there are those who attempt to defraud the government through evading tax, by participating in the underground economy or in illegal tax schemes.
An example of our efforts to combat the underground economy is our partnership with the Canadian Home Builders' Association, called the Get it in Writing campaign. It informs consumers about the risks involved in hiring contractors for residential construction without a legal contract. Should the job be botched or done improperly, these individuals would have no recourse unless they have a contract. That's the message we're giving them, in partnership with the industry. We plan to add more resources and other professionals to our already strong compliance team. In fact, Mr. Chair and members, Canada has one of the best records of compliance of any of the countries in the world.
We will soon be implementing a national standard for reviewing newly created GST accounts within five days of registration. This will assure that the information supplied is validated promptly, and that follow-up action can be taken where necessary.
We will continue to pursue cases of non-compliance in court to ensure that all Canadians pay their fair share—but I also say that we don't want anyone to pay more than his or her fair share. That's why so many Canadians are so pleased to receive tax rebates if they've overpaid during the year in the filing of their taxes.
In conclusion and in summary, a lot of progress has been made in the development of our smart and secure border. The CCRA will continue to work cooperatively with the United States and our many stakeholders.
On the revenue side, I am pleased to report that our services to Canadians are continually improving. I especially want to underline once again our success with government online. The response to our advertising campaign, which I think you all had a chance to see on TV, was excellent. This year, close to 9 million tax returns were filed online.
The CCRA and its dedicated employees are committed to running programs as efficiently and effectively as possible. We're also committed to being transparent and accountable to Canadians through working cooperatively with the Auditor General and reporting annually to Parliament.
I'd like to take a moment and tell you what our mission statement is. Our mission is to promote compliance with Canada's tax, trade, and border legislation and regulations through communication, quality service, and responsible enforcement, thereby contributing to the economy and social well-being of Canadians.
I'd be pleased to answer any questions that committee members might have.
Merci beaucoup.