The government says it’s earmarking money in the upcoming budget to crack down on a tax-evasion scheme the trucking industry has long derided as a $1-billion scam.
The Canadian Trucking Alliance (CTA), the voice of the country’s trucking industry, has dubbed it “Driver Inc.”
It occurs when companies try to save money on payroll taxes by incorrectly classifying drivers as independent contractors rather than employees.
As part of the federal budget set to be tabled on Nov. 4, the Carney government is putting $77 million toward the problem over four years starting in 2026-2027, and $19.2 million annually on an ongoing basis.
The money will go toward the Canada Revenue Agency to help strengthen compliance.
“I want to be very clear: misclassification is exploitation. It strips workers of their rights, and it creates an uneven playing field for the many honest companies that follow the rules,” Jobs Minister Patty Hajdu said at a parliamentary committee meeting on Thursday.
“Too often, it is vulnerable workers who are hit the hardest. Many of them are newcomers to Canada who have trusted that the system will protect them.”
The funds will allow the CRA to lift a moratorium on penalties for failing to report fees for service transactions on T4A slips and to implement a program to address non-compliance issues related to personal services businesses and reporting fees for service.
Stephen Laskowski, president and CEO of the Canadian Trucking Alliance, previously told CBC he’s been lobbying the federal government on the issue for a decade.
Earlier this month, Laskowski appeared at a federal transport committee meeting to again make his case.
“The CTA has been sounding the alarm with the federal cabinet and provinces since 2018,” he said.
“The problems identified in 2018 have since been left to grow unchecked, and in 2025 they have evolved into a full-blown crisis of compliance, road safety, drug trafficking, human rights abuses, rampant labour law and tax fraud. It’s been allowed to become out-of-control.”
Tax reform to help address Driver Inc. was one of 18 requests the Bloc Quebecois made of the federal government ahead of this year’s budget.
In his remarks at committee, Transport Minister Steven MacKinnon noted the government announcement directly responded to one of the Bloc’s requests.
In a Thursday news release, Bloc Québécois transport critic Xavier Barsalou-Duval said the party is pleased the Liberals are taking action, though he added there is still work to be done on the issue and called for a formal inquiry into driver exploitation in the trucking industry.