Canadian trucking groups sound alarm over ‘tax scam,’ call on CRA to step in
Several teams representing Canadian truckers are calling on the Canada Revenue Agency (CRA) to assist finish what they name a “tax scam” impacting their business, which has been occurring for years, however has reached the “crisis” stage.
The teams stated at a press convention Tuesday they wish to see an finish to the “Driver Inc.” mannequin, which they name a “tax evasion and employee misclassification scam,” and “labour abuse funded by a tax scheme.”
According to the Canadian Trucking Alliance (CTA), the “Driver Inc.” mannequin is when a trucking firm tells its drivers to register as an organization “to sell their driving services to the carrier.”
“What distinguishes these individuals from ‘owner-operators’ is they do not own, lease or operate a vehicle. Instead they drive the carrier’s vehicles and are virtually indistinguishable from an ‘employee’” the CTA says.
The group says the apply permits carriers and drivers to keep away from sure tax obligations. But as a result of these drivers don’t get acknowledged as staff, this has the knock-on results on the business of constructing it tougher for drivers to entry employment insurance coverage, extra time and trip pay, severance, sick days, and medical and dental advantages.
The group elevating considerations — made up of Teamsters Canada, the Canadian Trucking Alliance (CTA), and the Association du Camionnage du Québec (ACQ) — additionally estimates the apply permits carriers and truckers to keep away from paying $1 billion a 12 months in taxes.
“Put into its simplest form, Driver Inc. is a practice of misclassifying drivers of company owned equipment as independent contractors in order to sell their driving services back to that carrier,” defined John McCann, the nationwide freight and tank haul director for Teamsters Canada. “By doing this, those carriers are able to reduce their operational expenses and drastically undercut industry rates by avoiding payment of mandatory employee related service deductions.”
McCann stated one other key problem is the apply provides some carriers an unfair benefit over others, and referred to as it “an abuse of vulnerable workers.”
They’re calling on the CRA to audit carriers and implement enforcement measures for individuals who make use of the Driver Inc. apply.
CTVNews.ca has requested the CRA whether or not it plans to make modifications to assist reduce down on the apply, however has not but acquired a response.
Mariam Abou-Dib, the chief director of Teamsters Canada, stated whereas the federal labour and transport ministries have each been receptive to considerations from the trucking business about Driver Inc., CRA is a “missing partner” in making extra substantive modifications.
Stephen Laskowski, president of the CTA, stated there are a lot of drivers who interact within the apply willingly, whereas for others there’s a lack of awareness from some drivers concerning the larger impacts on the business.
“Regardless, enforcement needs to happen” he stated. “This is a disaster.
