It’s Time for CRA to Enforce Compliance and End Tax Abuse in Trucking

Via CTA,

Today, the Canadian Trucking Alliance announced a new campaign to increase awareness about the damaging impact from the ongoing inaction on T4A enforcement by the federal government– specifically the ongoing moratorium – for Canadian trucking industry, workers, and the broader economy.

The T4A moratorium and a lack of enforcement has allowed an underground economy to thrive, causing significant losses in tax revenue and jeopardizing the livelihoods of hundreds of thousands of hard-working truck-drivers.

The Canada Revenue Agency (CRA) is currently surveying businesses and organizations to assess their readiness to comply with the reporting fees for service (RFS) requirement. The RFS mandates that payments for services exceeding $500 in a calendar year be reported to the CRA using a T4A slip. However, due to a moratorium on penalties for non-compliance that has been in place since 2010, many businesses have ignored this requirement, resulting in rampant tax evasion and unfair competition within the trucking sector.

Minister Marie-Claude Bibeau and the CRA are contributing to conditions for an underground economy to thrive due to inaction. This negligence is costing Canadians billions in lost tax revenue, which means less funding for essential services like healthcare, infrastructure, and education. It’s time for the CRA to enforce T4A compliance and put an end to this abuse.

Supporters can take action by visiting stoptaxandlabourabuse.ca to learn more and voice their concerns. We encourage you to fill out the CRA survey, as this is a critical step toward holding bad actors accountable and ensuring a level playing field for all trucking companies.

CTA is also encouraging all supporters to share our campaign messaging widely on their social media platforms by tagging @CanRevAgency and @mclaudebibeau. All social media graphics and accompanying text can accessed and downloaded from our campaign toolkit, here.

“For over a decade, the CRA’s moratorium on T4A enforcement has allowed personal service businesses to proliferate, harming compliant businesses and workers alike,” said President Stephen Laskowski from the Canadian Trucking Alliance. “We urge all members of the trucking community to participate in the survey and make their voices heard.”

Quick Facts about Driver Inc:

  • Driver Inc. drivers are misclassified as independent contractors to avoid paying mandatory remittances such as workers’ compensation, overtime, and payroll taxes.

  • Drivers lack essential protections and coverage, such as workers’ compensation, putting them at risk in case of injury or accident.

  • Driver Inc. drivers typically are not given mandatory federal entitlements by their companies, including overtime, vacation pay, severance and 10-paid sick days – which was a centrepiece policy under the Liberal-NDP agreement.

  • Driver Inc. carriers operate with significantly lower payroll costs, up to 35% less, giving them an illegal competitive advantage over compliant carriers.

  • This scheme costs the Canadian government up to $1 billion annually in lost tax revenue, affecting public funding for essential services.

  • Driver Inc. undermines legitimate carriers, compromising safety standards, and affecting the overall integrity of the trucking industry.

Join the Stop Tax and Labour Abuse campaign today to demand action from the federal government. Visit stoptaxandlabourabuse.ca to learn more and take part in the CRA survey and share our campaign on social media with the help of our detailed guide.

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