Worker who performs services on behalf of their own corporation (personal services business)
Addressing tax non-compliance in the trucking industry
The Canada Revenue Agency (CRA) has lifted the moratorium on the penalties for failure to report fees for service transactions in the trucking industry starting with the 2025 tax year. Trucking businesses will now face penalties if they fail to report payments over $500 in a calendar year made to Canadian-controlled private corporations in the trucking industry. Additionally, Budget 2025 proposes funding for a focused program that addresses non-compliance related to personal services businesses and reporting fees for service. For more information: Compliance requirements for the trucking industry.
If the worker is performing services through their own corporation, special rules may apply to their corporation for income tax purposes. Depending on the situation, if a worker performs services on behalf of their own corporation, the corporation may be considered to be carrying on a personal services business (PSB).