‘Exploitative’ trucker loophole to be addressed in upcoming budget

Trucks enter the United States across the Ambassador Bridge from Windsor, Ontario Thursday, Aug. 7, 2025, in Detroit. (AP Photo/Paul Sancya)

OTTAWA — Finance minister François-Philippe Champagne will use Tuesday’s federal budget to close a tax loophole critics say is exploiting workers and creating unfair labour practices in the trucking industry.

At issue is a business model the Canadian Trucking Alliance refers to as “Driver Inc.”, in which transport companies misclassify drivers as independent contractors rather than employees to save money on payroll taxes.

In a statement issued on Thursday, Champagne’s office said the federal budget will allocate $77 million over the next four years to the Canada Revenue Agency to address the issue.

That includes ending a moratorium on penalties for failing to report fees for service on tax forms that was created as a temporary measure in 2011 but never lifted.

Tax reform to combat the “Driver Inc.” is one of the Bloc Québécois’ 18 recommendations for the upcoming budget.

Jobs Minister Patty Hajdu told the House of Commons transport committee on Thursday the misclassification issue is exploitation, stripping workers of their rights and harming the companies that follow the rules.

This report by The Canadian Press was first published Oct. 31, 2025

Justin Escoto, The Canadian Press