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CRA Lifts T4A Moratorium in Trucking: What Canadian Carriers Must do for 2025

December 22, 2025

At Fulcrum Group, we’re assisting trucking clients navigate the Canada Revenue Agency’s (CRA) major announcement: the moratorium on T4A penalties for “fees for services” reporting has been lifted, effective for the 2025 tax year. This targets non-compliance in the “Driver Inc.” model, where incorporated drivers’ relationship with their client resembles an employee relationship, but the driver incorporates to reduce payroll taxes and benefits expenses. As your local small accounting firm, we’ll guide you through compliance to avoid penalties.

Risks

  • Payors: T4A filing penalties of $100/slip + $30/day (up to $7,500/return) for missing 2025 reports, plus possible retroactive payroll taxes, EI premiums, and WSIB penalties if incorporated drivers are reclassified as employees.
  • Payees (Driver Inc. CCPCs) risk PSB (personal services business) audits disallowing corporate deductions, forcing personal income taxation at higher rates, plus denied EI/pensions/benefits from misclassification—exacerbated by CRA’s focused trucking enforcement program starting 2026.

Who Is Affected?

  • Trucking businesses: Any payer (carrier or fleet operator) where more than 50% of primary income comes from trucking activities.
  •  Payees: Canadian-controlled private corporations (CCPCs) in trucking receiving payments for services. Often “Driver Inc.” entities set up by owner-operators.
  •  Scope: Payments exceeding $500 in a calendar year for services (excluding GST/HST) for each payee, each year.

This aims to restore fairness and ensure compliance in the industry.

When It Applies and to Whom

The change applies starting with the 2025 tax year (January 1–December 31, 2025) and all future years. No grace period remains. It specifically requires reporting payments made to other trucking corporations for services like hauling or subcontracting.

Backed by Budget 2025’s $77M CRA funding for audits, expect increased scrutiny.

Key Deadlines

  • Review payments: compile 2025 records of payments to incorporated drivers/subcontractors.
  • File with CRA: By February 28, 2026 (or postmarked March 2, 2026, as Feb 28 is a Saturday). Use box 048: Fees for services on the T4A slip via My Business Account or payroll software.
  • Issue T4A slips to recipients: By February 28, 2026 (or postmarked March 2, 2026, as Feb 28 is a Saturday) for each individual payee over the $500 payment threshold.
  • Penalties: Immediate for late/missing filings.

Action Steps to Implement Reporting

  • Identify affected payments: Scan ledgers for 2025 service payments >$500 to CCPCs in trucking. (Use vendor details to confirm CCPC status and industry).
    • CCPC status and industry could be confirmed by requesting the articles of incorporation or by using CRA’s business number look-up tool.
  • Gather recipient info: Obtain recipient’s name, address, social insurance number (individual) or business number (corporation), and net payment totals (no GST/HST).
    • Accounting software features can be used to automate tracking and flagging of relevant payments.
  • Prepare T4As: Use CRA’s online portal or our services. Note that electronic filing in mandatory for businesses with more than 5 slips.
  • Distribute and file: Send copies to recipients and file with CRA by Feb 28/Mar 2.
  • Document everything: Keep records for 6 years to defend audits.

Fulcrum Group can handle this end-to-end, including gathering the information and filing, for a smooth year-end close.

Staying Compliant in the Future

  • Track annually: If possible, set up vendor flags in accounting software for trucking CCPCs; automate thresholds.
  • Review contracts: Classify drivers properly. Consider payroll reclassification to avoid PSB audits.
  • Training staff: Regular training for staff members on T4A requirements and ongoing review of vendor contracts to ensure proper classification.
  • Await CRA guidance: Expected soon; we will keep clients updated as new information becomes available.
  • Proactive planning: Monitor Budget 2026 updates and optimize taxes/safety compliance.

Follow the link below for more information regarding compliance in the trucking industry:

https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/requirements-trucking-industry.html

Contact Fulcrum Group today for a trucking compliance review and ensure your business is prepared for the new T4A requirements.

 

Forensic Accounting

August 7, 2024

What is forensic accounting?

Forensic accounting uses accounting, auditing, and investigative skills to examine the finances of a business or individual. Forensic accountants analyze financial information that could be used as legal evidence and often testify in court as a key witness. They must also be able to identify fraud with minimal details, identify the scheme, and use procedures to prove if it exists. The most common industries forensic accountants work in are insurance, financial institutions, and law enforcement agencies.

Duties of a forensic accountant

Some of the responsibilities that fall under the forensic accountant include:

  • Insurance claim investigation: obtain records related to insurance claims and look into whether the payments made by insurance meet policy conditions.
  • Trial testimony: forensic accountants may be asked to appear and testify in court. They find evidence of any fraud, embezzlement, or tax evasion. They may also testify for a plaintiff or defendants.
  • Bookkeeping investigation: includes gathering and analyzing transactions to find any fraudulant or incorrect items. They are looking for any fraud, embezzlement or misappropriation.

How to become a forensic accountant

 The path to becoming a forensic accountant is similar to a traditional accountant. It is still required to complete a bachelor’s degree in accounting. Once that is complete, the candidate must also complete the Chartered Professional Accountant (CPA) program to become designated. Once designated, accountants can complete the Certified in Financial Forensics (CFF) credential. After the CFF credential is completed, they can pursue careers in this field.

Differences in forensic accounting vs traditional accounting

 Both careers require the same education and CPA designation but the duties performed vary.

Traditional accounting analyzes routine transactions, prepares financial information as well as ensures the correct accounting standards and follows regulations. Careers in accounting normally fall within organizations which normally include, audit, tax, financial planning and budgeting.

Forensic accounting takes the financial information to identify and uncover any potential fraud then uses procedures to prove whether or not fraud does exist. Skills that are required to perform these careers include attention to detail, strong investigative skills as well as integrity.

Conclusion

 While the underlying education is the same as becoming a CPA, the major difference between a forensic accountant and a traditional accountant is that they have to conduct investigations to uncover information, identify anything unusual, track and recover fraudulent activities and report their findings in a way that anyone can understand.

References

 https://www.accounting.com/careers/forensic-accountant/

https://www.investopedia.com/terms/f/forensicaccounting.asp

https://financialcrimeacademy.org/forensic-accountant-responsibilities/

https://integrityforensic.com/forensic-accounting-vs-traditional-accounting-whats-the-difference/