OTTAWA — Finance minister François-Philippe Champagne will use Tuesday’s federal budget to close a tax loophole critics say is exploiting workers and creating unfair labour practices in the trucking industry.

At issue is a business model the Canadian Trucking Alliance refers to as “Driver Inc.”, in which transport companies misclassify drivers as independent contractors rather than employees to save money on payroll taxes.

In a statement issued on Thursday, Champagne’s office said the federal budget will allocate $77 million over the next four years to the Canada Revenue Agency to address the issue.

That includes ending a moratorium on penalties for failing to report fees for service on tax forms that was created as a temporary measure in 2011 but never lifted.

Tax reform to combat the

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