Ottawa To lift T4A Moratorium in Major Step Towards Combating the Underground Economy in Trucking

TORONTO, Oct. 30, 2025 /CNW/ - A major step aimed at curbing the notorious Driver Inc. misclassification scheme fueling the growth of the underground economy in the trucking sector was announced today by Minister of Finance and Revenue, François-Philippe Champagne.

It was announced that Budget 2025 will provide $77 million over four years, starting in 2026-27, with ongoing funding of $19.2 million annually, for the Canada Revenue Agency 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 and reporting fees for service.

In addition, the budget would also propose amending the Income Tax Act and the Excise Tax Act to allow the Canada Revenue Agency to share taxpayer information and confidential information as it relates to the classification of workers with Employment and Social Development Canada. This would provide Employment and Social Development Canada with access to better information, which could allow it to more effectively address the issue of driver misclassification in the trucking industry. 

In the release, the Minister of Finance and National Revenue, François-Philippe Champagne, stated:

"Budget 2025 is cracking down on Driver Inc., closing loopholes, making our roads safer, and standing up for drivers and businesses that play by the rules. We are lifting the moratorium on T4A penalties in the trucking industry as part of a series of targeted measures to combat misclassification. In doing so, we are working to guarantee the benefits workers are entitled to, improve safety for Canadians, and ensure that everyone pays their fair share."

"Today is a substantial day for our industry. We thank Minister Champagne for his leadership, and we look forward to working with government as it follows through on its commitments," said Canadian Trucking Alliance president and CEO Stephen Laskowski. "This move finally gives owners and drivers who obey the law and follow the tax code hope that their businesses and jobs will survive against the surge carriers who operate within the underground economy and who have been undermining legitimate operators for years." 

Lifting the moratorium of T4A enforcement in the trucking industry means that all truck drivers who are not classified as employees by their companies – including owner-operators and incorporated drivers operating as Personal Service Businesses (PSBs) under the so-called Driver Inc. model – will once again receive T4A slips.

Now, when a carrier audited by the CRA is discovered not to have issued T4As to PSBs and contractors, the carrier will face financial consequences for failing to do so. In turn, issuing T4A slips creates a formal record of income the CRA can use to match against what contractors report on their tax returns. Together, this process helps identify and address underreporting or non-reporting of income, making all parties transparent and accountable for their tax obligations.

Opposition to lifting the moratorium has largely focused on the perceived administrative burden it would place on businesses – an argument CTA strongly rejects.

"A lot has changed since the moratorium was introduced in 2011, and the idea that issuing T4As creates a mountain of red tape for small businesses is simply not true in 2025," said Laskowski. "The trucking industry is one of the largest in Canada, and it's made up primarily of small businesses. Both large and small carriers alike have strongly supported this measure. Reintroducing T4As will help many small fleets stay in business, not harm them."

To learn more about why the T4A process is vital to the trucking industry, see CTA's submission to the House of Commons TRAN Committee on this subject.

See CRA's official statement here. 

SOURCE Canadian Trucking Alliance

Media Contact: Marco Beghetto, VP Communications & New Media, [email protected]