Truckers Beware: CRA Audits Coming

Evelyn Jacks

Effective December 4, 2025, the CRA has officially lifted the moratorium it has extended in the transportation industry and intends on levying penalties for failure to report fees paid for services for the 2025 tax year and subsequent tax years.  Here’s what you need to know:

Specifically, businesses in the trucking sector – those with more than 50% of revenues that come from trucking activities - will now be assessed penalties when they fail to report payments made to a Canadian Controlled Private Corporation (CCPC)  for services exceeding $500 in a calendar year.

T4A Slip Reporting.  These payments must now be reported on a T4A slip in box 048 – fees for services – by February 28, 2026. 

Audits Coming.  The Finance Department allocated $77 Million to reporting enforcement specifically in this industry with the view to enhancing CRA’s capacity to address non-compliance in the trucking industry.

At issue are “misclassified workers” – those who are really in an employer-employee relationship but have incorporated as independent consultants providing services to the trucking companies. 

These consultants have been reporting income on a T2 tax return with full deductions and access to the Small Business Deduction, and therefore lower tax rates.  They are however Personal Services Businesses, by CRA’s definition, not eligible for the SBD and most deductions, plus an additional tax above the top tax rate applied to corporations.

This can dramatically increase the taxes truckers have been paying. In addition, the companies paying the fees have avoided payroll source deductions for CPP, EI and Income Taxes in these relationships.        

Bottom Line.  Tax specialists should be preparing their clients for potential bad news – reduced take home pay and potential audits of their reporting going forward, in the case of truckers providing services.  For companies, new administrative costs in producing T4A slips should be budgeted for and put into action now.