The forthcoming budget will allocate funds to combat a tax evasion scheme within the trucking industry known as “Driver Inc.,” estimated to be a $1 billion issue. The government plans to invest $19.2 million annually starting in 2026-27 to address this problem. The Canadian Trucking Alliance (CTA) has been advocating for action on this issue for several years.
Misclassification of drivers as independent contractors instead of employees is at the core of the Driver Inc. scheme, enabling companies to evade payroll taxes. The proposed budget aims to enhance compliance efforts by the Canada Revenue Agency (CRA) to tackle this exploitation and level the playing field for law-abiding companies.
Jobs Minister Patty Hajdu emphasized the impact of misclassification on workers, particularly vulnerable individuals and newcomers to Canada. The allocated funds will support the CRA in enforcing penalties for non-compliance and implementing programs to address reporting discrepancies.
CTA President Stephen Laskowski has been lobbying the government for nearly a decade on this issue, highlighting the escalating crisis of compliance, road safety, and labor law violations associated with Driver Inc. The Bloc Québécois has also pushed for tax reforms to combat this problem, with Transport Minister Steven MacKinnon acknowledging the government’s response to these demands.
While progress has been made, there are calls for further action and a formal inquiry into driver exploitation in the trucking sector. The government has been urged to address the root causes of the issue, including regulatory changes that have facilitated the proliferation of the Driver Inc. scam. Hajdu emphasized the importance of regulations in combating such fraudulent practices.