The trucking industry is the backbone of Canada’s economy — keeping goods moving, supply chains steady, and businesses connected. Lately, this essential role has increased attention from regulators, including the Canada Revenue Agency (CRA).

Recently, the CRA updated and clarified its tax compliance requirements for trucking businesses — and these changes have important implications for carriers, owner-operators, and incorporated drivers. Whether you’re a fleet owner or a small trucking business, understanding these rules is essential for maintaining compliance and for protecting your business from penalties, financial risk, and possible operational interruptions.

Below is a summary of what the CRA now expects:

Reporting Fees for Services (RFS)

One of the most important updates is the CRA’s requirement for trucking companies to report payments for services made to Canadian controlled private corporations (CCPCs) within the trucking industry.

Here’s what businesses need to know:

1. Reporting Rule for Service Payments

Simply put, if your trucking business pays more than $500 in a calendar year to a CCPC for trucking-related services, those payments must be reported using a box 048: Fees for services on a T4A slip.
This rule applies beginning with the 2025 tax year, and penalties for non-reporting will now be enforced.

2. Who Is Considered Part of the Trucking Industry?

In the eyes of the CRA, a business is considered to be operating in the trucking industry if more than 50% of its income-earning activities come from trucking (i.e. the primary source of incoming is from trucking).
If trucking is not your primary source of income, these specific reporting rules may not apply.

Personal Services Businesses (PSBs): What You Need to Know

The CRA also highlights the importance of identifying when a corporation may be considered a Personal Services Business (a “PSB”), a structure sometimes used when a driver incorporates but still works like an employee.

If your business operates as a PSB, or pays incorporated drivers who may be considered PSBs, different tax obligations and reporting rules apply. The CRA is increasing enforcement related to these arrangements, supported by specific funding outlined in Budget 2025.

Additional Resources

• For more information on a PSB’s tax filing obligations, see the CRA breakdown here: Understand your obligations as a corporation carrying on a PSB or the payer of a PSB – Canada.ca
• For help understanding if a corporation is operating a PSB, the CRA has provided this checklist. A business is a personal services business (PSB) if it meets all 5 conditions noted within the checklist.
• Did you know that the CRA offers a Personal Services Business (PSB) Fact Sheet in multiple languages? Learn more here: Fact sheet – Personal Services Business – Canada.ca

What CRA Compliance Means for Trucking Businesses

For many carriers, these compliance changes represent a significant operational shift. Failure to follow the updated reporting rules can now result in penalties, starting with the 2025 tax year.
To stay compliant, trucking businesses should:

• Review all contractor and service-provider relationships
• Track payments to incorporated drivers and CCPCs carefully
• Ensure all payments above $500 are reported on T4A slips
• Confirm whether your business meets the CRA’s definition of “operating in the trucking industry” (see note above)
• Seek advice from licensed tax professionals familiar with transportation-sector rules

With penalties being reinstated, accurate reporting is more important than ever.

Why This Matters for Decision Makers

For our trucking clients, compliance isn’t just an accounting concern — it’s a risk management issue.
Failure to report and non-compliance with the CRA rules can lead to:

• Unexpected tax assessments
• Disruptions to business operations
• Financial penalties
• Complications when verifying employee vs. contractor status

As always, Staebler Insurance Brokers play a valuable advisory role by helping clients not only insure their critical assets and operational liabilities, but understand all risks to their business, including regulatory and operational risks.

Staying Ahead of CRA Changes

The CRA’s updated trucking-industry requirements mark a new era of enforcement and a good opportunity for businesses to strengthen their financial and operational practices. Staying compliant protects companies from penalties while promoting fairness across the sector.

For carriers and owner-operators, now is the time to:

• Review your reporting practices
• Update internal payroll systems
• Clarify driver relationships
• Seek professional compliance guidance, if needed

This blog is for informational purposes only and is not to be considered professional advice or to be used in substitution of seeking guidance from a licensed professional.

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Staebler Insurance is a general insurance broker specializing in car insurance, home insurance, small business insurance, and commercial insurance. Staebler Insurance Brokers proudly serve Kitchener, Waterloo, Cambridge, Guelph, Stratford, Listowel, Fergus, Elora, Wellington County, Perth County, Waterloo Region, the Greater Toronto Area, Golden Horseshoe, Niagara Region, and all over beautiful Ontario, Canada. Get a Quote to get started today.