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Driver Inc & PSB – What Every Canadian Truck Driver Must Know in 2025 (And How to Legally Reduce Taxes)
By BS Bookkeeping & Tax Services – Calgary, AB The Driver Inc. model has become increasingly common in Canada, especially in the transportation and trucking industry. Companies often encourage drivers to incorporate themselves and operate as independent contractors instead of employees. While this setup can seem attractive because of lower perceived taxes, it has also raised big red flags with CRA, leading to audits, penalties, and reclassifications. If you're a truck driver in Alberta, BC, or anywhere in Canada, understanding Driver Inc vs PSB is crucial to avoid trouble — and to make sure your tax plan actually saves you money.
11/25/20251 min read
What Is “Driver Inc”?
Driver Inc refers to trucking companies treating drivers as incorporated contractors instead of employees, even though:
✔ They drive company trucks
✔ Use company schedules
✔ Follow employer rules
✔ Do not take real business risk
CRA is aggressively targeting this model because many drivers operating under Driver Inc do not qualify as real independent contractors.
What Is a Personal Services Business (PSB)?
A PSB is a corporation that exists mainly so someone can work like an employee — but through their company.
CRA considers your trucking corporation a PSB if:
You only drive for one company
You work under their direction/control
You use their truck/equipment
You could be seen as an employee without your corporation
If the CRA labels your corporation as a PSB, the consequences can be serious.
The Financial Consequences of PSB Classification
If CRA determines that your trucking corporation is a PSB:
You lose major business deductions:
Fuel expenses
Repairs & maintenance
Cell phone & meals
Travel
Home office
Depreciation (CCA)
Higher tax rate applied:
PSBs are taxed at 33%+, not the small business rate of 9–12%.
Back taxes + penalties:
CRA can reassess previous years, creating thousands of dollars in tax debt.
How We Help Truck Drivers Legally Reduce Taxes
At BS Bookkeeping & Tax Services, we specialize in tax planning for:
Truck Drivers
Owner-Operators
Incorporated Drivers
Contractors in Transportation
We help you by:
🔹 Reviewing your setup to avoid PSB classification
🔹 Maximizing business deductions CRA allows
🔹 Structuring your corporation properly
🔹 GST filing & bookkeeping
🔹 T1 & T2 tax returns
🔹 Year-round support — not just tax season
Is Driver Inc Illegal?
Not always — but if done wrong, it can become extremely costly.
Some drivers qualify as contractors. Some absolutely do not.
If you're unsure, we review your situation and give you the correct setup to keep you safe and compliant.
Real Tax Strategies for Truck Drivers (2025 Update)
We help you implement practical tax-saving strategies, such as:
Per-diem deductions
Proper expense tracking
Maximizing vehicle & logbook credits
Splitting income legally (spouse, family)
CRA-approved corporate structure
Avoiding PSB traps
Monthly bookkeeping plans (T2 FREE at year-end)
🔗 Internal Link to Previous Blog:
Missed our last article?
➡️ “2025 Guide: Corporate vs Sole Proprietor – Which Saves You More Tax?”
(links internally on your website)
📣 Strong Call-to-Action
If you're driving under Driver Inc, or your accountant has never discussed PSB risk, it’s time to get real tax support.
📧 hello@bsbookkeepingtax.com
🌐 www.bsbookkeepingtax.com
BS Bookkeeping & Tax Services – Calgary, AB
Trusted tax experts for Canadian truckers.
