CRA lifts penalty moratorium to tackle tax non-compliance in trucking sector

The Canada Revenue Agency has lifted a moratorium on penalties for unreported service fees in the trucking sector, a move aimed at addressing tax non-compliance and strengthening fairness in the industry.

Businesses will now face penalties for failing to report payments for services exceeding $500 in a calendar year made to Canadian-controlled private corporations in the trucking industry, starting with the 2025 tax year. The payments must be reported in box 048 of the T4A slip by Feb. 28, 2026.

A business is considered part of the sector if more than half of its primary income comes from trucking activities.

“Driver misclassification undermines workers, distorts competition for honest businesses, and puts safety at risk. By lifting the T4A penalties moratorium, we are reinforcing fairness in the trucking industry, ensuring drivers receive the protections they are owed, and contributing to safer roads for all Canadians, while making sure everyone pays their fair share,” said Francois-Philippe Champagne, minister of finance and national revenue.

According to the government, the updated reporting requirements are intended to improve transparency, strengthen compliance and support fair working conditions, while building on measures announced in Budget 2025 to enhance the CRA’s enforcement capacity. The agency says further guidance will be issued in the coming weeks.

“Canada’s supply chains rely on a strong, competitive, and fair trucking industry. Today’s announcement is an important step toward ensuring a level playing field for the thousands of operators who keep our economy moving,” said Steven MacKinnon, minister of transport and leader of the government in the House of Commons. “By supporting greater transparency and compliance, we are helping to build a trucking sector that continues to be safe, more resilient, and better positioned to serve Canadians and our trading partners.”

“By lifting the penalty moratorium on reporting fees for Services (RFS) in the trucking industry, Canada’s new government is cracking down on Driver Inc., closing loopholes, making our roads safer and standing up for businesses and drivers that play by the rules,” said Wayne Long, secretary of state for the CRA and financial institutions.