Compliance
Compliance Alert: Penalties Return for Trucking Sector T4A Reporting
The CRA is lifting its moratorium on penalties for unreported service fees in trucking businesses—key changes that impact T4A reporting and worker misclassification concerns.
By NomadicTax Research Team • 5-8 min read • February 27, 2026
## What the New Compliance Rules Say
Effective **for the 2025 tax year and beyond**, the Canada Revenue Agency (CRA) has **lifted the moratorium on penalties** for failing to report service fees (box 048) made to Canadian-controlled private corporations in the trucking industry when those payments exceed $500 in a calendar year. ([canada.ca](https://www.canada.ca/en/revenue-agency/news/2025/12/cra-strengthens-compliance-in-trucking-sector-by-lifting-the-moratorium-on-t4a-penalties.html?utm_source=openai))
Definitions to note:
- “Trucking industry” means entities whose **primary income (over 50%) comes from trucking activities**. ([canada.ca](https://www.canada.ca/en/revenue-agency/news/2025/12/cra-strengthens-compliance-in-trucking-sector-by-lifting-the-moratorium-on-t4a-penalties.html?utm_source=openai))
- Payments for services to CCPCs over the $500 threshold must now be included in T4A slips by **February 28, 2026**. If that date falls on a weekend, post-mark or receive by **March 2, 2026**. ([canada.ca](https://www.canada.ca/en/revenue-agency/news/2025/12/cra-strengthens-compliance-in-trucking-sector-by-lifting-the-moratorium-on-t4a-penalties.html?utm_source=openai))
## Why This Change Is Significant
- **Worker rights enforcement**: Reinforces compliance around worker classification and ensures proper reporting of income relevant for CPP, EI, benefits.
- **Level playing field for businesses**: Entities that previously didn’t report are now held to same standards—companies who comply won’t be undercut by unreported competitors.
- **Penalties and risk**: Exposed entities could be retrospective assessed if returns or slips lacking required reports were filed.
## Who Should Be Paying Attention
- Trucking companies functioning via contractors or sub-suppliers who may be CCPCs.
- Fleet operators, logistics firms, transport brokers.
- Bookkeepers, accountants serving clients in the trucking sector.
Review existing contracts: many payments for “services” that were previously overlooked may now require T4A slips.
## Compliance Checklist: What to Do Now
1. **Review all payments to CCPCs**
- Identify service payments to private corporations.
- Total these amounts per recipient—if over $500 annually, they must be reported.
2. **Prepare T4A slips with box 048 entries**
- Ensure slips include *“Fees for Services”* and proper recipient information.
- Watch deadlines: **February 28, 2026**, or **March 2** if statutory holidays/weekends. ([canada.ca](https://www.canada.ca/en/revenue-agency/news/2025/12/cra-strengthens-compliance-in-trucking-sector-by-lifting-the-moratorium-on-t4a-penalties.html?utm_source=openai))
3. **Assess possible exposure and adjust for past periods**
- Although the moratorium has ended, historical non-reporting may be subject to penalties if still within statute. Proactively disclose if needed.
4. **Update internal systems and contracts**
- Set up tracking for payments to ensure payments over $500 are flagged.
- Ensure vendors understand reporting requirements.
## Example Scenario
- **ABC Trucking Co.**, hiring a CCPC as sub-contractor and paying $750/year for repair services. Under new rules, ABC must issue a **T4A slip**, box 048, for that CCPC recipient. If they do not, penalties apply.
- **Logistics Hub Ltd.**, approx 60% of income from shipping and freight: under definition of trucking industry. Services rendered to smaller CCPC vendors must be reported when $500+ per calendar year.
## Risks & Best Practices
| Risk | Mitigation |
|---|---|
| Missing deadlines leading to penalties | Set internal tracking and timelines well in advance, especially for T4A due dates. |
| Service payments mis-classified or left out | Review contract language to clearly define “service” vs “goods”. Document everything. |
| Underestimating exposure | Conduct internal audit of last few years to assess whether non-reported service fees exist. |
**Take-away**: The lifting of the moratorium puts the trucking sector squarely back under payment reporting rules. If your business is trucking-or-service heavy, don’t wait—get systems in place now.