Federal budget promises to lift T4A moratorium in bid to stamp out Driver Inc.

It's already slated not to start until 2026/2027, which I take to mean the 2026 tax year with returns due in 2027. By the time audits start it will be the end of 2027, beginning of 2028. There will likely not be any enforcement action until 2029, and the way the courts run, not likely any significant judicial outcomes until 2032 at the earliest.
All this assumes the November 4 budget passes. If it doesn't, and we go to election, this will never see the light of day.
I don't know about you guys, but joining the Driver Inc. crowd is starting to look pretty good right now !!!
 
T4A will only help if everyone utilizes it. I'm 100% sure that the people who enjoy the exploitation using Driver Inc. will not file T4As until they are enforced.

All this is another requirement on compliant businesses and carriers causing more work and more overhead while the crap non-compliant companies continue to reap the benefits.

The government needs to enforce the non-compliant companies for the rules already in place instead of (re)introducing new ones.
 
  • Like
Reactions: Phantom T and JACKBURTON
Jim L said:
T4A will only help if everyone utilizes it. I'm 100% sure that the people who enjoy the exploitation using Driver Inc. will not file T4As until they are enforced.

All this is another requirement on compliant businesses and carriers causing more work and more overhead while the crap non-compliant companies continue to reap the benefits.

The government needs to enforce the non-compliant companies for the rules already in place instead of (re)introducing new ones.
Click to expand...
You're not wrong, but the system has to start somewhere. However, starting now, or in a year, is far too late. Driver Inc. has too far of a head start. There's literally no stopping it now, regardless of what the government does.
The only way I can see it stopping is if industry itself gets involved, and not the trucking industry ... the manufacturing/shipping industry.
Be real, if the shipping community simply said "no Driver Inc. Fleets", required proof, and enforced the rule, Driver Inc. would curl up and die in a heart beat.
To be fair, the shipping community started this mess in the first place, chasing that ever lower, and lower, and lower transportation rate.
Personally, I think the shipping community should be held accountable and liable ... "You hired XYZ Driver Inc. fleet. Here's your bill for the taxes unpaid.".
Driver Inc. dies right then and there.
 
  • Like
Reactions: Phantom T, Shakey, Bbigrig and 1 other person
Michael Ludwig said:
You're not wrong, but the system has to start somewhere. However, starting now, or in a year, is far too late. Driver Inc. has too far of a head start. There's literally no stopping it now, regardless of what the government does.
Click to expand...
The CRA needs to:
  • Get CRA employees back to work in an office building. Having them work from home in their boxers, hiding behind a laptop screen, with their kids screaming in the background is not conducive of a work environment. They need to get more done.
  • Audit a carrier and review the payment trail from the sale to an actual dispatched trip to actual cash payment. Someone did the work - did they pay via payroll, or did they pay to DRIVER INC? Did it even get paid? If DRIVER INC, where is the invoice? Was HST charged and does the DRIVER INC have an HST account?
  • Audit the DRIVER INC, did they report the sale (invoice to the carrier). Did they capture HST properly. Did they report 100% of the sales?
I am 100% certain, that if you put me in a consultant role at CRA, I could steer 10 auditors through this process with a computer picking out 10 subject carriers and we'd catch a mountain of fraudulent transactions at the carrier level, plus tons of DRIVER INC's with no report of income or HST improprieties. This would even be before the discussion of possible penalties for misclassifying the DRIVER INC. All this could be completed in 3 months or less and we wouldn't need T4a's to do it.

Not to mention, as soon as this happens, the fear of reprisal in an audit will go through the industry like wildfire. Every Driver Inc would be calling their carrier looking to go on payroll immediately. This in turn would drive up payroll remittances further filling the coffers of the government.

Now comes the facetious part...
This alone could lower the Federal deficit by billions. I'd only want to get paid one tenth of one percent of the penalties plus interest the CRA would impose.
I don't see why Carney hasn't called me yet.
 
  • Like
  • Love
Reactions: Shakey, Phantom T, Michael Ludwig and 1 other person
@Jim L et al ...
What if Canada adopted a W-9/1099 style framework for reporting, without the corporate exemption the U.S. has?
Shippers and/or brokers report who they paid.
Carriers report who they paid.
Driver Inc better be able to show that they paid.

EDIT: After rereading Jim L's post, I see that's what he basically said.
 
  • Like
  • Love
Reactions: Shakey and Phantom T
You must log in or register to reply here.
Top Bottom