OTTAWA, ON, Dec. 4, 2025 /CNW/ - Trucking is vital to connecting Canada's vast and expansive territory and bridging our united economies. But tax non-compliance in the trucking sector has allowed some companies to avoid tax obligations, undercutting compliant competitors and denying workers the benefits and pensions they have earned.
To restore fairness, the Canada Revenue Agency (CRA) is making changes to improve compliance in the trucking industry.
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.
These updated reporting requirements will help improve transparency, strengthen compliance, and ensure both payers and workers are meeting their tax obligations, while supporting fair working conditions and safer roads for all Canadians. They build on the strategic investments announced in Budget 2025, which enhance the CRA's capacity to address non-compliance in the trucking industry.
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.
Quotes
"Driver misclassification undermines workers, distorts competition for honest businesses, and puts safety at risk. By lifting the T4A penalties moratorium, we are reinforcing fairness in the trucking industry, ensuring drivers receive the protections they are owed, and contributing to safer roads for all Canadians, while making sure everyone pays their fair share."
- The Honourable Francois-Philippe Champagne, Minister of Finance and National Revenue
"Canada's supply chains rely on a strong, competitive, and fair trucking industry. Today's announcement is an important step toward ensuring a level playing field for the thousands of operators who keep our economy moving. By supporting greater transparency and compliance, we are helping to build a trucking sector that continues to be safe, more resilient, and better positioned to serve Canadians and our trading partners."
- The Honourable Steven MacKinnon, Minister of Transport and Leader of the Government in the House of Commons
"To build the strongest economy in the G7 we need a strong and skilled workforce. Canadians rely on the work of truck drivers every day to get our goods to market and to keep our economy moving. We are focused on ensuring a level playing field for the trucking industry and its drivers."
- The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario
"By lifting the penalty moratorium on reporting fees for Services (RFS) in the trucking industry, Canada's new government is cracking down on Driver Inc., closing loopholes, making our roads safer, and standing up for businesses and drivers that play by the rules."
- The Honourable Wayne Long, Secretary of State (Canada Revenue Agency and Financial Institutions)
Quick facts
- RFS is the legislated requirement for businesses and organizations to report fees paid to other businesses for services provided. Under the Income Tax Act, payments that exceed $500 in a calendar year must be reported to the CRA in prescribed form, usually the T4A slip.
- In 2011, the CRA introduced a moratorium on assessing penalties for failing to complete box 048, Fees for services, on the T4A slip. This was meant to allow businesses and organizations time to gain familiarity with the RFS requirement and adopt practices to comply.
- To restore fairness to the sector and ensure workers are receiving the benefits they deserve, Budget 2025 proposes $77.0 million over four years, starting in 2026-2027, with ongoing funding of $19.2 million annually, for the CRA to lift the moratorium on the penalties for failure to report fees for service transactions in the trucking industry and to implement a focused program that addresses non-compliance issues related to personal services businesses (PSBs) and RFS.
Contacts
John Fragos
Press Secretary
Office of the Minister of Finance and National Revenue
[email protected]
Luca Bonifacio-Proietto
Press Secretary
Office of the Secretary of State (Canada Revenue Agency and Financial Institutions)
[email protected]
Media Relations
Canada Revenue Agency
613-948-8366
[email protected]
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SOURCE Canada Revenue Agency
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