Department of Finance Canada said Budget 2025 would fund new CRA compliance work aimed at the Driver Inc. model in the trucking sector.
The issue is worker classification. Finance Canada said some companies misclassify truck drivers as independent contractors rather than employees.
The department said the practice can undercut compliant businesses and deprive workers of employment-related benefits and pensions.
Budget 2025 would provide $77.0 million over four years, starting in 2026-27, with $19.2 million in ongoing annual funding, for the Canada Revenue Agency to lift the moratorium on penalties for failure to report fees for service transactions in the trucking industry.
The funding would also support a focused program addressing non-compliance related to personal services businesses and reporting fees for services.
The budget would propose amendments to the Income Tax Act and the Excise Tax Act so CRA can share taxpayer and confidential information related to worker classification with Employment and Social Development Canada.
The measure is part of a broader compliance push. It affects trucking businesses, incorporated drivers, and payers because classification and reporting decisions can determine payroll obligations, income reporting, GST/HST treatment, benefits, and penalties.