CRA & ESDC Clarify Status of Driver Inc & Enforcement to Trucking Industry

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The Canada Revenue Agency (CRA) and Employment and Social Development Canada (ESDC) have clarified how they will treat the practice of so-called Driver Inc. by removing any grey area as it relates to the tax and labour status of incorporated drivers operating company vehicles.

The Driver Inc. model is based on commercial vehicle drivers, who do not own/lease or operate their own vehicle, becoming incorporated and receiving payment from their carrier with no source deductions. This practice opens the door to the possibility of widespread tax manipulation by those engaged in Driver Inc.

Read the full update on The Canadian Trucking Alliances website.