Good Practices and Innovations in Public Governance 2003-2011

2010 Category 2: Canada
statistical data and improved models for estimating costs. Other areas for improvement
are currently under study. The methodology has been challenged by some taxpayers,
but the courts have confirmed its validity.
This project is now integrated into the daily operations of Revenu Québec and is part
of the triennial planning for 2009–2012, with profitability targets comparable to
those of previous years. Revenue Québec plans to recover $280 million for the period
2003–2011.
Ensuring Fiscal Equity has paved the way for more use of technologies that revolutionize
the tax audit methods of governments in a sustainable way. Revenu Québec is
now in a position to introduce other programmes that will make use of the impressive
potential of its data warehouse and generate millions of dollars in additional revenue.
For example, Revenu Québec expects to use new technologies to pursue more of the
most serious cases of suspected tax evasion. The tools developed under this project
can also be used for other Revenu Québec activities, such as the proposed Revenue
Optimization programme, which involves tracing the assets of taxpayers with delinquent
accounts. All this will be done with transparency, thoroughness and respect for
privacy in order to constantly enhance public confidence in the tax administration
and to contribute to the continuation of quality public services.
The detection of tax evasion is very complex, and no organisation had ever before
attempted to computerize. For many governments, Revenue Québec has now become
a key model in the fight against tax evasion. Indeed, at the request of several jurisdictions,
Revenue Québec has held formal meetings to present its new audit approach to
Canada’s national government, the provinces of British Columbia and Ontario, and
the governments of Argentina, Australia, France and Madagascar.
Lessons Learned
Six factors were key to the success of this initiative:
• Political will and government cooperation: The government consistently demonstrated
its willingness to deal innovatively with the problem of tax evasion.
This buy-in was vital; with such a major project, ministerial control was essential
to obtain the legislative changes needed.
• Public support: Because setting up a new audit approach also affected citizens,
their support for the project was equally crucial. The various surveys conducted
over the last decade have shown that the population backed the government’s
efforts to ensure equitable distribution of the tax burden among all citizens.
• Respect for privacy: Rigor in the selection of audit records and secure screening
of information were fundamental to maintaining the commitment of the
authorities and the support of citizens.
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