Driver Inc. “is a sham” that “rips off drivers and taxpayers”, says a transportation lawyer with Fernandes Hearn LLP, urging that anyone engaged in the unlawful particle change their ways before Canada Revenue comes knocking on their doors.
The Driver Inc. model is an illegal labour classification mechanism through which many unsafe and noncompliant fleets fuel their growth. It allowing employers to sidestep source deductions and employee drivers to claim business tax benefits they’re not entitled to.
Speaking at the ISB Global Biz and Breakfast this week, Kim Stoll, had some strong advice for truckers operating under Driver Inc, reports Truck News:
“I know it sounds ominous, but (CRA) are coming,” she said of Canada Revenue Agency (CRA). “And rightfully so, because Driver Inc., when set up in that manner is a sham. It rips off drivers and it rips off taxpayers.”
Although CRA has so far not put a lot of effort into enforcement, Stoll thinks that’s about to soon change. “The taxman will come,” she warned.
She urged drivers in that scenario to review the CRA website to determine if they are truly an independent contractor.
Asked if drivers will have any legal recourse against their employer, if they’ve been led to believe this arrangement is legal, Stoll said this:
“We haven’t seen that yet. I’m sure that will come,” she said. “Everybody is responsible for their own activity…You’re responsible for the decisions you make and the contracts you sign.”
But she said drivers could file civil cases against their employers, on the grounds of “undue influence or some sort of employment contract breach.”
Full Truck News story here.