Canada’s federal tax agency says it is reinstating penalties for failure to report service fees on T4A forms for the current tax year and beyond, in a bid to crack down on driver misclassification and illegal drivers in the trucking industry.
The Dec. 4 announcement from the Canada Revenue Agency (CRA) comes amid a wider push to end so-called “Driver Inc.” practices in the trucking industry at the federal and provincial level. Driver Inc. refers to the practice of hiring novice truck drivers as independent contractors rather than as employees to evade payroll taxes and circumvent minimum wage requirements and benefits.
