The federal government today followed through on a budget promise to life the moratorium on penalties related for failing to report fees for services via T4A slips for the 2025 tax year and beyond.
Canada Revenue Agency (CRA) announced the change was made “to restore fairness” and “improve compliance in the trucking industry.”
“Tax noncompliance in the trucking sector has allowed some companies to avoid tax obligations, undercutting compliant competitors and denying workers the benefits and pensions they have earned,” CRA said in a release.
The moratorium on T4A-related penalties has been in place since 2011, when it was instituted “to allow businesses and organizations time to gain familiarity with the RFS requirement and adopt practices to comply.”
Trucking companies must report payments for services to Canadian-controlled private corporations in the trucking industry exceeding $500 in the calendar year, using box 048 of the T4A slip by Feb. 28, 2026.
A business is considered to be operating in the trucking industry if more than 50% of its primary source of income is from trucking activities, CRA clarifies.
“Driver misclassification undermines workers, distorts competition for honest businesses, and puts safety at risk,” announced Minister of Finance and National Revenue, Francois-Philippe Champagne. “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.”
