Staying up to date with changes in tax requirements is part of running a business. In the latest development, the Canada Revenue Agency (CRA) is cracking down on the trucking sector for non-compliance with tax laws. In 2011, the Agency introduced a moratorium on assessing penalties for failing to complete box 048, Fees for services (RFS), on the T4A slip. The intent behind the moratorium was to help companies introduce processes to comply with the RFS requirement. However, many trucking companies used the moratorium to avoid taxes. The agency lifted this moratorium on December 4, 2025, to improve compliance and restore fairness for those companies that comply.
Changes In Reporting Requirements For the Trucking Sector
For the 2025 tax year and subsequent tax years, trucking companies have to report any payments above $500 they made for services to a Canadian-controlled private corporation (CCPC) in the trucking industry. A CCPC that earns more than 50% of its income from trucking is considered a trucking company for tax compliance.
The CRA will assess any company that fails to meet the RFS requirement for non-compliance and impose necessary penalties. The Agency will release details of the penalties in due course.
These changes will help the CRA crack down on trucking companies that deliberately misclassify employees as independent contractors to avoid paying benefits and pensions. Lifting the moratorium on T4A penalties will help the CRA ensure that drivers receive the protection they are owed.
What are the Reporting Fees for the Service Requirement
Just as an employer issues a T4 slip to employees stating details of the payments and any deductions, a T4A slip is issued for other payments, such as pension, annuities, self-employed commissions, and fees paid for services. The CRA requires payers to fill in details of the amount they paid in the T4A Slip and give a copy to the CRA and another to the receiver by the end of February.
Since February 28, 2026, is falling on a Saturday, the deadline to submit and distribute the T4A slip is March 2, 2026, the next working day.
The receiver uses the T4A slip to fill their income tax returns. The CRA uses the slip to verify the amount and other information with the income tax returns of the payor and the receiver. Until now, the CRA has not assessed any industry for failing to fill box 48 – fees for services. However, the trucking sector will now be assessed for the same.
Who Should Issue a T4A Slip and When
A payer should issue T4A slip if they deducted tax from the payment, or the cumulative payments throughout the calendar year exceeded $500. However, there are some exceptions, and if your payment is one of them, you need not issue the T4A slip.
The payer can be a business, a charity or non-profit organization, a municipal, provincial, or territorial government, a government department or agency, or a public body working for the government.
The CRA will publish further guidance on which businesses will be affected by the reporting requirement and how they should meet their reporting obligations.
If your business uses trucking services or earns revenue from them, you should keep an eye on the updated guidelines.
The CRA introduces many changes to improve tax compliance. Understanding the implications of these changes to your business is difficult. A professional accountant is well aware of the changes and guidelines CRA publishes from time to time and can help your business stay compliant.
Contact MW&CO in Woodstock to Help You Stay Tax Compliant
At MW&CO, our accountants and bookkeepers can provide services such as tax filing and bookkeeping. To learn more about how MW&CO can provide you with the best accounting and bookkeeping expertise, contact us online or by telephone at 519-539-6109 or toll-free at 1-877-539-6109.