ESDC, CRA to exchange data, tackle Driver Inc. enforcement
Employment and Social Development Canada (ESDC) and the Canada Revenue Agency (CRA) have entered into a data-sharing agreement to coordinate enforcement efforts in the federally regulated road transportation sector, focusing on combating the Driver Inc. scheme.
The initiative, included in Budget 2024, aims to strengthen compliance measures introduced in 2022 to address tax avoidance and worker misclassification in the trucking industry.
In the coming months, ESDC and CRA will outline the specific data to be shared between the two agencies, identify any privacy concerns, and establish the legislative framework necessary to implement these agreements. The agreement is expected to enhance ongoing compliance activities and enforcement in the trucking sector.
“With your ongoing support and efforts, we continue our fight against unfair labor practices to help ensure workers receive the protections they are entitled to under the Canada Labor Code, while taking the necessary enforcement actions to ensure both payers and workers meet their tax obligations under the Income Tax Act,” ESDC said in a Sept. 11 announcement.
“This agreement indicates a new level of heightened enforcement among these two key agencies to battle the sprawling underground economy, which is devastating our industry. This is an important step which will help support promises government has made to end the widespread labor and tax abuse in our sector,” said Canadian Trucking Alliance president Stephen Laskowski in a release. “We look forward to seeing this process completed and for these efforts to be deployed in the field to end these unscrupulous practices nation-wide.”
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Is there not a system in place where the Ministry of Finance can trace all HST numbers for fail to file a quarterly return I know numerous companies are paying the drivers HST but the drivers are not filing any reports
Finally… It’s happening more and more. Not that I’m really enjoying that the government is going to collect more taxes. It has absolutely nothing to do with that. What it has to do with is:
As an Honest, hard-working, small fleet owner, FedEx Ground Linehaul contractor, That is running the small business completely by the book and clean ,
it is extremely difficult for us Fleets that employ only drivers on payroll, to actually compete with most small and medium size fleets out there that hire subcontractor drivers. Most drivers up to yesterday at least a year or two ago simply would not bother working for us just because it’s on payroll. It’s changing ,
I feel it. In my view, all the drivers should be either subcontractors or on payroll, not some like this and some like that. Eventually, all the drivers will be on payroll. It’s inevitable, and we will get a proper competitive playing field with the rest of the fleets..
It is very simple solution set min pay rates on a hourly basis with overtime in B C sask and Manitoba to get gov insurance and to run out of those provinces. Require and trucking company that is approved for any drivers and 2 or more foreign mechanics to submit all their drivers names and payroll records for the last 2 years and the numbers of cases of lease ops or drivers inc that have made a complaint or have a unresolved court action. To be a member in the O TA or any the other trucking association in Canada or to be able to send trucks into the U S except by a load permit show the average hourly wage off the elog and proof of medical insurance
We have pushed to get these changes. But we first had to push to get 10 paid sick days and to lower the % of foreign drivers as this part of a 3 sided stool to correct. I am very happy to work with any group to make sure this done correctly