Mzwandile Poncana
Local Journalism Initiative Reporter
Mississauga.com
The Canada Truck Operators Association (CTOA) warns the federal government’s plan to crack down on tax noncompliance in the industry could backfire, worsening an already fragile supply chain.
CTOA spokesperson Tej Dulat appeared before Brampton council on Nov. 12 to outline challenges facing drivers, owner-operators and small trucking businesses.
He asked the city to recognize the trucking community’s essential economic role, condemn harmful rhetoric and urge senior governments to consult local trucking stakeholders before making policy changes.
During his delegation, Dulat told councillors the industry is being squeezed by a slowing global economy, new U.S. tariffs and rising costs, even as long-haul drivers spend weeks away from their families. He said a growing narrative in national debates has unfairly labelled many independent and incorporated drivers as illegal or cheaters, and is creating fear and uncertainty.
Following the delegation, Coun. Gurpartap Singh Toor moved a motion to refer CTOA’s concerns to city staff. The motion passed unanimously in what Dulat considers a rare acknowledgment of independent drivers’ contributions.
Dulat said more than 60 per cent of the trucking workforce comes from diverse community backgrounds and that negative narratives on social media have unfairly painted these workers in a bad light.
“The Brampton motion sends a strong message: the governments must hear from grassroots, diverse, on-the-ground stakeholders like CTOA before decisions are made,” he said.
Federal enforcement plan
The 2025 federal budget, tabled Nov. 4, allocates $77 million over four years for the CRA to lift its moratorium on penalties for failing to report fees-for-service transactions in trucking and address what critics call an underground Driver Inc. economy, where companies misclassify drivers to avoid taxes, labour standards and safety obligations.
Dulat said the timing is problematic given economic pressures from U.S. tariffs, slowing freight volumes, rising costs and labour shortages.
He said CTOA’s internal discussions with drivers suggest between 23 and 25 per cent of long-haul drivers would consider leaving the profession if forced into a single employment model or overwhelmed by new reporting rules, warning this could mean severe labour shortages, delivery delays and higher costs.
CTOA is calling on Ottawa to apply T4A rules consistently across all industries, conduct an impact assessment on small carriers before rolling out penalties, and provide accessible tools including free digital reporting software, multilingual guidance and a phased rollout period.
Incorporation debate
At the centre of the dispute is whether truck drivers should be treated as employees or as small business owners. Many long-haul drivers set up incorporated companies and are paid as contractors rather than employees on a carrier’s payroll.
Critics label this model “Driver Inc.” when used to misclassify drivers. CTOA maintains that incorporation itself is not illegal, pointing to CRA comments at a November 2025 transport committee meeting stating the real issue is proper tax compliance and education.
“The biggest misunderstanding is the assumption that incorporated drivers are doing something illegal or unethical simply because they are incorporated,” Dulat said.
He said most independent drivers choose incorporation for legitimate reasons including flexibility, the chance to eventually buy their own truck, and a preference for entrepreneurship.
CTOA argues that safety incidents and tax debates are being mixed together in a way that benefits large carriers.
“This issue-mixing has one predictable outcome: it strengthens the biggest players and sidelines everyone else,” he said.
CTOA says enforcement should focus on employers who misclassify drivers into contractor models they did not choose, rather than on all drivers who operate as incorporated businesses.
Safety concerns
Dulat acknowledged calls from Peel families and advocates for stronger enforcement after serious truck-related crashes.
“First, I want to say clearly: when families in Peel call for stronger safety, they are right,” he said.
He said safety should be addressed through training, licensing reforms and enforcement targeting repeat-offender carriers rather than by stigmatizing incorporated drivers.
CTOA supports Ontario’s recent Class A licensing reforms, including mandatory entry-level training and requiring at least one year of Canadian driving experience.
“You cannot fix safety by eliminating entrepreneurship; you fix safety by eliminating unsafe carriers,” Dulat said.
“Brampton’s trucking community and Brampton’s neighbourhoods are not on opposite sides,” Dulat added. “A city with strong planning, fair enforcement and proper infrastructure will have both safe communities and a thriving trucking workforce.”
