Compliance
Compliance Spotlight: What Trucking Companies Must Know About T4A Fees-for-Services Penalties
In response to Canada’s lifted moratorium, trucking firms face financial risks if they fail to report fees-for-services. Know your obligations under box 048 of T4A slips and avoid costly penalties.
By NomadicTax Research Team • 5-6 min read • February 21, 2026
## Overview of the New Requirement
Starting with the **2025 taxation year**, the Canada Revenue Agency (CRA) has lifted the moratorium on penalties for failing to report **fees for services**—especially within the trucking industry. These payments, exceeding **CAD 500 per calendar year** to Canadian-controlled private corporations, must now be reported in **box 048 of the T4A slip**. Penalties may apply if missed. ([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))
### Who’s Affected?
- Businesses in the trucking sector: more than 50% of primary income coming from trucking. ([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))
- Once you make payments for services to a CCP (Canadian-controlled private corporation) over 500/year, you must issue a slip.
## What You Must Do to Comply
- Review all service contracts with Canadian-controlled contractors. Identify recurring payments.
- Ensure your payroll or accounting system tracks **payments to service providers** separately from wages or supplies.
- Collect tax numbers of service-providing corporations to complete T4A slips accurately.
- File T4A slip with box 048 for fees-for-services by February 28, 2026 (for 2025 slips), or postmarked by March 2 (weekend allowance). ([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))
## Penalties and Enforcement
Previously, there was a moratorium—meaning little or no penalties—on failure to report box 048 in trucking. Now, penalties are back: businesses may be assessed if they don’t comply. These measures come from Budget 2025 strengthening CRA enforcement. ([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))
## Example Case: Small-Fleet Operator
**“Maple Freight Ltd.”** operates a small trucking fleet and contracts with a local repair shop (a Canadian private corporation) for maintenance. If they paid the shop **CAD 1,000** in 2025, they must report that payment on a T4A slip, box 048. Failing to do so could result in penalties when CRA audits submitted T4A slips.
## Best Practices for Staying Ahead
- **Maintain detailed documentation** of service invoices, payments, and contractor information (name, address, private corporation status).
- **Train accounting teams** on classification rules: what counts as fees for services vs. other payments.
- **Run internal reviews or audits** prior to T4A filing season. Ensure all eligible payments are included.
- **Use CRA guidance**: CRA will publish further guidance to clarify definitions and compliance expectations. ([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))
## Final Thoughts
This change underscores the CRA’s growing emphasis on compliance and transparency. Even small firms can face penalties if reporting is not accurate. Plan ahead for February filings, design systems to capture eligible payments, and ensure all contractors are properly documented. Staying compliant not only avoids penalties—it ensures fairness across the industry.