What Has Changed?
On December 4, 2025, the Canada Revenue Agency (CRA) lifted the moratorium on penalties for failing to report “fees for services” payments (over $500 in a calendar year) to Canadian-controlled private corporations (CCPCs) in the trucking industry. These payments must now be reported in Box 048 of the T4A slip. (canada.ca)
The deadline for affected businesses is February 28, 2026. Since that date falls on a Saturday, returns posted or received by March 2, 2026 will be considered on time. This applies for the 2025 tax year and subsequent years. (canada.ca)
Who Is Impacted?
- Businesses in the trucking sector: those whose primary source of income (over 50%) is from trucking. (canada.ca)
- Businesses that make fees for services (RFS) payments exceeding $500 in a calendar year to CCPCs.
- Small and large operations alike—both owners and entities paying for services must comply.
Some Practical Action Steps
| Task | Recommended Action | Why It Matters |
|---|---|---|
| Review Contracts & Service Payments | Check all vendors and contractors for CCPC status and yearly fees; flag those exceeding $500 | Missing this threshold draws penalties under the new rules |
| Update Payroll/Accounting Software | Ensure your systems track RFS amounts and can populate Box 048 on T4A slips | Automated accurate reporting will reduce risk of human error |
| File Ahead for 2025 | Even though deadline is early 2026, prepare now and gather vendor info | Early assembly reduces stress and avoids last-minute rush |
| Secure Legal/Tax Advice | If unsure whether payments should be T4A or done differently (employee vs contractor status), seek professional help | Penalties can be harsh, and worker misclassification is a separate issue |
Potential Penalties & Risks
- Penalties for failure to report Box 048 fees will now apply. The CRA had previously suspended those penalties to allow transition. (canada.ca)
- Misreporting or failing to file can lead to audits, reassessments, or additional administrative costs.
- Worker misclassification remains a risk: if someone actually has employee status but is treated as a contractor, benefits and payroll liabilities may follow.
Case Example
Acme Trucking Ltd. pays $1,200/year to Strong CCPC Inc. for hydraulic maintenance. Prior to penalty lifting, Acme may have omitted reporting this fee. Now, Acme must include that $1,200 in box 048 on its T4A with a T4A slip issued for Strong CCPC. If not, by March 2, 2026, it may face penalties, including late-filing fees.
Why this Matters Beyond the Trucking Industry
While this policy specifically targets trucking, it signals CRA’s intent to tighten report-for-services transparency and close loopholes, especially where worker protections and private corporation transactions are involved. Other sectors may see similar enforcement in coming years.
Bottom Line
The lifting of T4A penalties moratorium in the trucking sector is in effect for 2025 onward. Trucking businesses must ensure they track RFS payments over $500 to CCPCs and report using Box 048 on the T4A slip by February 28, 2026 (or postmarked by March 2, 2026). Getting ahead of these requirements now will reduce your compliance risk and protect both reputation and finances.