TORONTO, Ont. – The Canadian Trucking Alliance (CTA) continues its attack on the “Driver Inc.” payment model, making its case before the House of Commons Standing Committee on Finance.
Driver Inc. refers to an approach that pays drivers as independent contractors, avoiding the source deductions required with employees. The CTA has already been asking the Canada Revenue Agency to clarify its position on the approach.
It isn’t the only tax-related issue being highlighted. Building on a pre-budget submission delivered last month, general tax fairness was also on the agenda.
“U.S. companies are benefiting from growing tax advantages over Canadian counterparts. This has been further widened by the recent corporate tax reductions introduced by President Trump,” said alliance president Stephen Laskowski, calling for re-examined tax rates and accelerated capital cost allowance rates.
The presentation also highlighted the threat of an intensifying driver shortage, with Canada’s for-hire trucking industry expected to be short at least 34,000 drivers by 2024.
“While the driver shortage is clearly affecting Canadian fleet owners, who today look out their windows and see unseated trucks parked along the fence, it will undoubtedly become an issue very soon for the greater Canadian economy as shippers struggle to secure trucking capacity, increasing the cost of transportation services, and inevitably, the price of goods for consumers,” said Jonathan Blackham, director of policy and public affairs.
The alliance is asking for immigration, skills recognition, and government support for training to help.