T4A Enforcement Moratorium Lifted
Published
The Canadian Trucking Alliance (CTA) is applauding the federal government’s decision to lift the T4A enforcement moratorium, a key commitment from Budget 2025 aimed at curbing tax evasion linked to the Driver Inc. and PSB-model schemes. Beginning with the 2025 tax year, trucking
It’s decision time for those who operate in the underground economy
The Canadian Trucking Alliance is lauding the federal government’s swift decision to honour its promise in Budget 2025 to end the moratorium on T4As, ushering in a crucial era of tax compliance for the trucking industry.
“Promises made; promises kept,” said CTA Chair Greg Arndt. “The trucking industry would like to thank Minister of National Revenue François-Philippe Champagne and Secretary of State Wayne Long for their leadership and commitment to deliver this mandate swiftly so enforcement action can take effect and impact the 2025 tax year,” added Arndt.
Lifting the T4A moratorium will allow the government to better track links to the out-of-control PSB-model tax scam in trucking, which has been masquerading as small-business entrepreneurship and allowing thousands of operators to avoid filing taxes and to evade payroll taxes and other obligations.
“This is excellent news for small family businesses and big fleets alike,” said CTA President and CEO Stephen Laskowski. “We have seen unprecedented growth of the predatory use of the Driver Inc model to push law-abiding fleets out of business. This measure will create consequences for those fleets and drivers who choose to break the law, while ensuring those who follow the law can continue investing and growing their businesses to serve the Canadian and international supply chain.
In the CRA’s news release on the lifting of the T4A Enforcement Moratorium, the following key points were noted:
- As of today, the CRA has lifted the moratorium on penalties for failing to report fees for services for the 2025 tax year and subsequent tax years.
- Businesses in this sector will now be assessed penalties if they fail to report payments for services exceeding $500 in a calendar year that are made to a Canadian-controlled private corporation in the trucking industry. These payments must be reported to the CRA in box 048 – fees for services – of the T4A slip by February 28, 2026.
- A business is considered to be operating in the trucking industry if more than 50% of its primary source of income is from trucking activities.
- The CRA will publish further guidance in the coming weeks to help businesses determine whether they are affected and understand how to meet their reporting obligations.
Another key element of protecting the integrity of this measure will be increased enforcement and the rapid establishment of the PSB oversight team, which the budget committed to, says CTA.
“This enforcement team will be critical to restoring fairness throughout the industry. It must prioritize acting on the extensive leads already provided to CRA, as well as those generated through their own investigations,” said Jonathan Blackham, CTA director of Policy and Public Affairs.
To see the Government of Canada’s release, please click here.