Budget Vote Secures Path to CRA & ESDC Enforcement Against Driver Inc Abuse

Source: OTA

This week’s passage of the federal budget marks a pivotal moment in the fight against tax evasion and driver misclassification in Canada’s trucking industry. The measures introduced provide new enforcement tools and renewed hope for truck drivers and compliant carriers long affected by the widespread abuse of the Driver Inc model.

“Budget 2025 makes firm commitments and adopts the strategies needed to allow Employment and Social Development Canada (ESDC) and the Canada Revenue Agency (CRA) to tackle tax and labour non-compliance tied to Driver Inc,” said CTA Chair Greg Arndt. “With the budget now passed, the CTA and provincial associations will work with federal and provincial authorities to ensure these measures have maximum impact for law-abiding carriers and owner-operators.”

The CTA will now begin collaborating with CRA and ESDC on enforcement strategies, including the issuance of T4As, actions related to misclassification, and coordinated efforts with provincial vehicle inspection stations and other provincial agencies. These bodies will work jointly with the federal departments to enforce the law, share information, and educate the industry on new policies.

Arndt emphasized that the upcoming federal transport committee’s report, expected by the end of 2025, will offer recommendations to strengthen federal-provincial cooperation. These will align with anticipated 2026 recommendations from the Council of Ministers and Deputy Ministers Responsible for Transportation and Highway Safety, following the CCMTA-led overhaul of key National Safety Code Standards.

In Ontario, the Ontario Trucking Association (OTA) plans to build on this federal momentum.

“While multi-department safety blitzes in 2025 have increased, they do not match the scale of the safety and compliance issues facing the province,” said OTA Chair Mark Bylsma.

The OTA urges Ontario to open inspection stations 24/7, eliminate the “satisfactory unaudited” CVOR rating, overhaul licensing and training rules, and address the province’s out-of-control municipal truck parking crisis.

“Ontario must acknowledge the seriousness of the truck safety crisis and quickly implement systemic solutions. At a minimum, we need to match the proactive approach demonstrated by the Government of Canada.”