NEWS RELEASE
MP FOR ALGOMA-MANITOULIN-KAPUSKASING
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“Today, I recognize the hard work of trucking companies and drivers who keep our supply chains and economy moving.
But those companies and employees are coming face to face with an illegal tax scheme that threatens the livelihood of the industry, rights of truckers, and the safety of people on our highways,” said Carol Hughes, MP for Algoma-Manitoulin-Kapuskasing, in the House of Commons today.
She highlighted the danger that Driver Inc., an illegal tax scam designed to make truck drivers register as corporations to avoid paying a significant portion of taxes that also removes standard employee protections and health and safety compliance.
“Driver Inc. is a tax scheme designed to convince employees to register as a corporation. The company then pays the corporation, which is not subject to normal tax deductions. Drivers are not entitled to overtime pay, paid sick days, vacation or severance pay,” Hughes said.
“This illegal tax scheme leaves truckers unprotected in the event of workplace injury and vulnerable to unjust termination.”
While the recent fall economic statement has some measures designed to clamp down on this illegal tax scheme, including funding for Employment and Social Development Canada (ESDC) to take stronger action against non-compliant employers to enforce the Canada Labour Code, more work needs to be done, such as increasing enforcement from Canada Revenue Agency, and closing any tax loopholes that allow Driver Inc. to flourish.
“Legitimate Carriers and labour stand together in condemning this practice that benefits large corporate entities who push the demand for this illegal tax scheme.”
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