Latest news with #T4A
Yahoo
26-06-2025
- Automotive
- Yahoo
Ever heard of Driver Inc.? Canada's trucking industry is calling it a $1B scam
The national voice of the trucking industry in Canada is renewing calls for the federal government to pump the brakes on what it says is a $1-billion scam. The scam, which the Canadian Trucking Alliance (CTA) has coined "Driver Inc.", occurs when companies incorrectly classify drivers as independent contractors, instead of employees to save money on payroll taxes. "We believe that in some parts of Canada at least a third of the companies and the drivers are participating in this, and it's hurting us twofold as a society," said Stephen Laskowski, CTA president and CEO. "Those are taxes that aren't going into our [economy], and on the flip side of it, it's about a 30 per cent advantage in the marketplace." Laskowski described Driver Inc. as a tax evasion scheme and says some trucking companies are purposely misclassifying drivers to save money. He says drivers also lose labour protections including fair pay, overtime and vacation pay, as well as health and safety protections. In 2021, the government made it illegal for federally regulated employers to misclassify employees, and added penalties for non-compliance. In a statement to CBC, Employment and Social Development Canada (ESDC) said that prohibition was strengthened in 2024 by placing the burden on employers to prove a worker is not an employee. However, Laskowski said more needs to be done, identifying Driver Inc. as the biggest current threat to the industry — including the ongoing Canada-U.S. trade war. "We have worked and pleaded with governments to address it, and the reality is they are starting to, but nowhere near to the level that needs to be done. Nowhere near," he said. Companies target newcomers Driver Karanveer Singh agrees there's a lack of enforcement against companies that break the law. Singh came to Canada from India's northern Punjab state as an international student when he was 18 years old. "I'm trying to chase the Canadian dream," he said. But Singh's journey took a detour shortly after he got his commercial trucking licence. He said the first two companies he worked for misclassified him as an incorporated driver, and also never paid him. Singh was able to prove to the Canadian Labour Board that he had been misclassified and the companies were ordered to pay what he was owed. While he was able to collect from one of the companies, Singh said it's unlikely he'll ever see the nearly $40,000 owed by the second company. "Until the government enforces it, it is useless," he said, referring to the court order. "These companies, they know what they are doing…. Most of the time they will find new immigrants, new truck drivers to target because they are so easy to target because every new immigrant is desperate for a job." A difficult problem Part of the CTA's solution involves lifting a moratorium on assessing penalties for failing to complete the fees for service box of the T4A tax slip. Laskowski said that would help the CRA identify and audit companies that rely heavily on incorporated drivers. However, it could also further slow an already sluggish system, according to Ottawa tax lawyer Dean Blachford. "With penalties comes disputes and penalty relief requests that clog up the system even if they are for small amounts," he explained in an email to CBC. "Meanwhile, the companies that are pushing the limits the most with Driver's Inc. still might not comply with the T4A requirement and instead take further evasive means (such as using shell companies) to creditor proof themselves from having to pay the penalty if CRA ever identifies them." In a statement to CBC, the CRA said it's working toward lifting the moratorium before enforcement commences. It also said the agency is not aware of the analysis underlying Laskowski's claim that Driver Inc. has resulted in about $1 billion in lost tax revenue, and "therefore cannot comment." Driving down business The owner of Kriska Transportation Group in Prescott, Ont., is also urging the federal government to act, saying the Driver Inc. model is driving companies that do comply with tax regulations out of business. The unfairness makes owner Mark Seymour's blood pressure rise. "It's widely known, it's not a dirty little secret. It's out of control," he said. Seymour has been in the business more than four decades, taking over Kriska from his late father in 1994. "I have competed as many of us have for many years based on price and service where price should be established from the same ground rules as everyone," he said. "That's paying appropriate taxes, treating people as employees and in the manner that the government would expect." Phil and Francie Langevin own P.A. Langevin Transport in Carleton Place, Ont., and say they, too, worry about the future. "There's so much wrong with this industry right now," Phil Langevin said, adding he suspects the companies that operate under the Driver Inc. model are so focused on profits that they also let safety standards slip. "These issues are falling through the cracks, and the next time you're driving on a highway with a transport truck beside you I want you to look at it and I want you to wonder how safe am I, really," Francie Langevin said. Singh said in his experience, that assessment is true. He recalled being trained by a very inexperienced driver who got them into trouble at the Port Huron border crossing. "He hit the concrete wall over there at the border, and I was so surprised. Like, this is supposed to be my trainer and he just like damaged the truck," Singh said. On his next trip, Singh said he was asked to be the trainer. "They did not [tell] me a single thing and just gave me a new training driver for me to train," he said. "They want their stuff delivered, they want their job done. "I think when these companies are allowed to operate, Canadians are not safe," he said. ESDC said it is taking action, recently entering into an information-sharing agreement with the CRA to help with enforcement and compliance. It also pointed to a dedicated team of inspectors focused exclusively on the road transportation industry across Canada. Since 2023, ESDC said the team has conducted about 540 inspections and held 320 education sessions across the country.
CBC
20-02-2025
- CBC
Financial, medical information stolen during cyber attack on Rainbow District School Board
A major school board in the Sudbury area is offering more details on the severity of a recent cyber attack, and what information was compromised. The Rainbow District School Board,says the cyber criminals responsible for an attack on the board's computer systems earlier this month stole sensitive personal information belonging to staff and students – including social insurance numbers and bank account information belonging to current and former staff members; social insurance numbers belonging to former students who received scholarships; and medical information for current and former students. The data breach affects people who worked for the board as early as 2010 and students who attended a school in the Rainbow District School Board as early as 2011. "We take this matter very seriously and apologize to all those who are affected," the board wrote in a notice posted to its website on Thursday. "We understand this news will be as concerning to you as it is to us and we are deeply sorry." Hackers accessed SINs belonging to scholarship recipients Criminals may have accessed the following information belonging to students, the board said: Personal information, including contact information, birth dates, academic achievement data, Ontario Education Numbers and, in some cases, medical and immigration information for all students who graduated between June 2012 and June 2024. Assessment information, medical diagnoses, health card numbers, behavioral information and information about accommodation and student support needs belonging to current and former students with identified exceptionality who have been enrolled in an Intensive Support Program (ISP) since 2019. Contact information and place of employment information for parents of the above groups. Social insurance numbers for former students who were enrolled in a Rainbow School since 2011 and who received a scholarship and a T4A slip for income tax purposes. In addition, the attack exposed school photos from the 2012-2013 to 2024-2025 school years. However, those photos are not attached to names or other identifying information, the board said. Anyone employed by the school from January 2010 onward is also affected, including full-time, part-time and occasional staff, it said. Hackers accessed the following data: Address and primary phone numbers of staff members from 2010 onward. Social insurance numbers of staff members from 2012 onward. Bank account numbers of staff members from August 2017 onward. Employee ID/compensation and benefit information/Ontario Ministry Educator Number (for teachers only) and police background check information for employees from September 2018 onward. In addition, they may have accessed medical information such as doctor notes, physical abilities forms and leaves of absence forms belonging to staff members from 2022 onward. The Rainbow District School Board has reported the cyber crime to the Greater Sudbury Police Service and the Ontario Provincial Police, the board said. It is offering a two-year TransUnion credit monitoring service, free of charge, to all current and former staff whose personal information was compromised. It's offering the same service to affected scholarship recipients whose social insurance numbers have been compromised and who have reached the age of majority. Former students who wish to sign up for the service should contact cyberincident@ the board said. Staff and former students who believe they have been victims of identity theft related to the incident should email the same address. The president of the Ontario Secondary School Teachers' Federation district serving Espanola, Manitoulin and Sudbury said he's heard from members who are concerned about the breach. But Eric Laberge said some are also experiencing déjà vu. Teachers hit with cyber attack previously "This is something that they – for the most part, especially those that have been hired more than three years ago – have gone through already," Laberge said. "Because there was a cyber incident with our provincial federation." The Rainbow board began experiencingtechnical difficulties with its computer system on Friday, Feb. 7, officials said. Officials took measures to protect the network and the data stored on it, they said, beginning a system-wide shutdown 10 a.m. that day at the Centre for Education and all 38 public schools in Sudbury, Espanola and on Manitoulin Island. By mid-afternoon, the board had confirmed and announced that the technical difficulties were due to a cyber incident.
