Trucking industry subject to closer scrutiny from tax authorities under new budget

Trucking companies that falsely classify their drivers as self-employed to save on payroll costs will face closer scrutiny from tax authorities, as Ottawa pledges $77-million over four years to curb tax avoidance in the sector.

Tuesday’s federal budget takes aim at a scheme known as “Driver Inc.” in the trucking industry. The business model sees companies lighten their tax burden by treating drivers as independent contractors rather than employees, even when drivers do not own their own trucks and have little control over their working conditions.