Minister Champagne clamps down on Driver Inc. scheme in Budget 2025
News release
October 30, 2025 – Ottawa, Ontario – Department of Finance Canada
In a rapidly changing and uncertain world, Canada’s new government is focused on what we can control. We are protecting our communities and our country. We are building our economy with major projects and millions more homes. We are empowering Canadians with lower costs and new opportunities to help you get ahead. We cannot control what other nations do, but we can control what we choose to build—and we are building Canada Strong.
Trucking is vital to connecting Canada’s vast and expansive territory and bridging our united economies—but not at the expense of industry standards and tax obligations. Too many trucking companies and the drivers they hire are in non-compliance with tax obligations. Some companies erroneously and deliberately misclassify their truck drivers as independent contractors, instead of on-staff employees. These practices undercut competition in the sector and unevenly punish rule abiding companies and deprive workers of the benefits and pensions they are owed.
To restore fairness to the sector and ensure workers are receiving the benefits they deserve, Budget 2025 will provide $77.0 million over four years, starting in 2026-27, with ongoing funding of $19.2 million annually, for the Canada Revenue Agency to lift the moratorium on the penalties for failure to report fees for service transactions in the trucking industry and to implement a focused program that addresses non-compliance issues related to personal services businesses and reporting fees for service.
The budget would also propose amending the Income Tax Act and the Excise Tax Act to allow the Canada Revenue Agency to share taxpayer information and confidential information as it relates to the classification of workers with Employment and Social Development Canada. This would provide Employment and Social Development Canada with access to better information, which could in turn allow it to more effectively address the issue of driver misclassification in the trucking industry.
Strengthening compliance would address long-standing concerns raised over tax avoidance schemes and ensuring proper contributions to the programs and services that Canadians rely on. Compliance with reporting requirements also helps level the playing field for responsible businesses and protects workers’ rights.
Quotes
“Budget 2025 is cracking down on Driver Inc., closing loopholes, making our roads safer, and standing up for drivers and businesses that play by the rules. We are lifting the moratorium on T4A penalties in the trucking industry as part of a series of targeted measures to combat misclassification. In doing so, we are working to guarantee the benefits workers are entitled to, improve safety for Canadians, and ensure that everyone pays their fair share.”
- The Honourable François-Philippe Champagne, Minister of Finance and National Revenue
“Truckers keep our country and our economy moving. They deserve fair pay and the benefits that come with the vital work they do every day. This is essential to keep Canada’s supply chains strong. This announcement reaffirms our commitment to protect rule-abiding companies and workers, while keeping Canadians safe on our roads.”
- The Honourable Steven MacKinnon, Minister of Transport and Leader of the Government in the House of Commons
“Trucking companies who follow the rules should not be put at a disadvantage to those who do not. With the budget measures we are proposing, we will be levelling the playing field, strengthening tax compliance to ensure everyone pays their fair share in supporting the programs and services Canadians depend on, and supporting access to benefits for workers in a key sector of our economy.”
- The Honourable Wayne Long, Secretary of State (Canada Revenue Agency and Financial Institutions)
“To build the strongest economy in the G7 we need a strong and skilled workforce. Canadians rely on the work of truck drivers every day to get our goods to market and to keep our economy moving. We are taking the next steps to ensure a level playing field for the trucking industry and its drivers."
- The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario
Contacts
Media may contact:
John Fragos
Press Secretary
Office of the Minister of Finance and National Revenue
John.Fragos@fin.gc.ca
Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000
General enquiries
Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca
Stay Connected
- Follow us on Facebook
- Follow us on X – @FinanceCanada
- Follow us on LinkedIn
- Add our RSS feeds to your feed reader