The Canadian Trucking Alliance (CTA) is calling for federal government action against the "$1-billion scam" known as "Driver Inc.," which it identifies as the biggest threat to the industry. This scheme involves trucking companies misclassifying drivers as incorporated workers instead of employees to evade payroll taxes, giving them an unfair market advantage while depriving drivers of labor rights and benefits. Despite government measures in 2021 and 2024 to make misclassification illegal, enforcement remains a major issue, particularly impacting new immigrants.
The $1B scam some say is driving Canada's trucking industry into crisis
CanadaOntarioCanada Revenue AgencyEmployment and Social Development CanadaBusinessTruckingFraud and false statementsTransportation
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TL;DR: Key points with love ❤️The Canadian Trucking Alliance (CTA) is calling for federal government action against the "$1-billion scam" known as "Driver Inc.," which it identifies as the biggest threat to the industry. This scheme involves trucking companies misclassifying drivers as incorporated workers instead of employees to evade payroll taxes, giving them an unfair market advantage while depriving drivers of labor rights and benefits. Despite government measures in 2021 and 2024 to make misclassification illegal, enforcement remains a major issue, particularly impacting new immigrants.
Trending- 1 1994: Mark Seymour took over Kriska Transportation Group.
- 2 2021: Government made it illegal for federally regulated employers to misclassify employees.
- 3 2023: ESDC's dedicated team conducted ~540 inspections and 320 education sessions.
- 4 2024: Prohibition on misclassification strengthened, burden of proof on employers.
- 5 Ongoing: "Driver Inc." scam continues to operate.
- 6 Ongoing: CTA calls for more enforcement.
- 7 Ongoing: CRA working towards lifting moratorium on T4A penalties.
- Estimated $1 billion in lost tax revenue for Canada.
- Drivers lose labor rights (fair pay, overtime, vacation pay, health and safety protections).
- Companies complying with regulations are driven out of business due to unfair competition.
- Potential compromise of safety standards in the trucking industry.
- New immigrants are particularly targeted and exploited.
What: A widespread tax evasion scheme called "Driver Inc." in the Canadian trucking industry, where drivers are misclassified as incorporated workers, leading to lost tax revenue and deprivation of driver rights.
When: Published 2025-06-25T08:00:00Z; the scam is ongoing, with government measures in 2021 and 2024.
Where: Canada (national, Ontario, Prescott, Carleton Place), India (origin of Karanveer Singh).
Why: Companies seek to save money on payroll taxes and gain a competitive advantage, while drivers (especially new immigrants) are vulnerable and desperate for jobs.
How: Trucking companies misclassify drivers as incorporated workers, avoiding employee-related taxes and benefits. Lack of government enforcement allows the practice to persist.