Trucking and Logistics Accounting: Tracking Mileage, Fuel, and Per Diems

Trucking is the lifeblood of Canada’s economy, but running a trucking or logistics business comes with complex accounting challenges. Long hours on the road, cross-border runs, and ever-changing fuel costs mean that tracking every kilometer, receipt, and allowance is critical. This comprehensive guide breaks down the legal and tax framework for Quebec and Canadian truckers – from mileage logs and fuel taxes to meal per diems – and explains how to stay compliant while maximizing your deductions. Whether you’re an incorporated fleet owner in Montreal or a self-employed owner-operator, these insights will help keep your books audit-proof and your business on the right side of CRA and Revenu Québec.

Legal and Regulatory Framework for Trucking Finances

Federal Income Tax Act (ITA) and Quebec Taxation Act: These laws govern how trucking income and expenses are reported. The ITA stipulates what business expenses are deductible and limits certain write-offs (for example, meals are normally only 50% deductible as personal expenses are generally not allowedtaxinterpretations.com). Notably, long-haul truck drivers enjoy a special ITA provision allowing 80% of meal costs to be deducted during eligible trips, recognizing the unique travel demands of the industry. The Quebec Taxation Act aligns with federal rules for provincial tax purposes, and trucking businesses must adhere to both federal and provincial definitions of taxable income and allowable deductions.

Excise Tax Act (ETA) and Quebec Sales Tax (QST): The ETA governs GST/HST on goods and services, including freight and logistics services, and it allows trucking businesses to claim input tax credits (ITCs) on business purchases like fuel, repairs, and equipment. In Quebec, the QST system parallels GST – trucking companies must register and charge QST on local services and can claim input tax refunds on expenses. Nearly all freight transportation within Canada is taxable under GST/HST/QST rules (with the exception of certain international or interline movements), so compliance with sales tax collection and remittance is a must. Failure to remit these taxes can even trigger personal liability for company directors under ETA s.323 and Quebec’s Tax Administration Act.

International Fuel Tax Agreement (IFTA): Trucking operations that travel outside Quebec fall under IFTA, a cross-border fuel tax framework. Quebec is a member jurisdiction of IFTA, meaning carriers do not have to file separate fuel tax returns for each province or state – instead, they file one quarterly return in their base jurisdiction (e.g. Revenu Québec for a Montreal-based fleet) covering all miles and fuel. IFTA mandates that qualified motor carriers track mileage in each jurisdiction and fuel purchases, then reconcile the tax owed or credit due across jurisdictions. This ensures fuel taxes are properly allocated to the provinces and states where the fuel was consumed. Keeping precise records of distance and fuel is not optional – IFTA rules require accurate odometer readings, route logs, and fuel receipts for each quarter. Carriers must also display IFTA licenses and decals on their trucks. Non-compliance with IFTA (such as late filings or poor records) can lead to hefty penalties or even suspension of your IFTA license, underscoring that fuel tax tracking is as important as income tax reporting.

Logbook and Hours-of-Service Regulations: While primarily safety regulations (under Transport Canada’s Commercial Hours-of-Service rules and Quebec’s Highway Safety Code), logbook requirements have a direct impact on accounting and tax compliance. Electronic Logging Device (ELD) mandates mean most Canadian long-haul truckers now use electronic logs to record driving hours, stops, and distances. These logs serve a dual purpose: they keep you compliant with transport regulations and act as supporting evidence for your travel expenses and per diem claims. The Canada Revenue Agency (CRA) specifically requires logbooks or similar records to prove you were away long enough and far enough to qualify for the long-haul meal deduction. In other words, your ELD or logbook is a critical accounting document. Regulations stipulate that a long-haul trip involves travel at least 160 km from your home terminal and an absence of at least 24 hours. Logs must capture dates, locations, distances, and times – any gap or inconsistency can undermine your tax claims. It’s not just about safety; it’s about dollars and cents at tax time.

By understanding this legal and regulatory framework – from the Income Tax Act↗ and Excise Tax Act↗ to Revenu Québec↗ rules and IFTA obligations – trucking entrepreneurs can navigate compliance with confidence. Every delivered load and every liter of fuel sits within a web of rules, but with the right processes you can steer through them and keep your operation profitable.

Owner and Director Liability in Trucking Businesses

Incorporating your trucking business offers liability protection – but it isn’t a shield against tax obligations. Both owners and directors in the trucking industry must be aware of personal exposure if taxes or filings are mishandled. Under the Income Tax Act and Taxation Act, a corporation is a separate entity responsible for its own tax debts; however, tax authorities can and do hold individuals accountable in specific cases.

Personal Liability for Unpaid Taxes: Company directors can be held personally liable for certain tax debts of the corporation, especially unremitted source deductions and sales taxes. The ITA s.227.1 makes directors personally liable for a company’s unremitted payroll withholdings (income tax, CPP/QPP, EI), and ETA s.323 does the same for unremitted GST/HST. Quebec’s laws similarly hold directors liable for unpaid QST and provincial source deductions. This means if your incorporated trucking company falls behind on, say, employee income tax withholdings or the GST/QST collected on freight bills, CRA and RQ can collect the amount from you personally – seizing personal bank accounts or assets if necessary. These penalties can equal 100% of the tax owing, plus interest. In one recent case, a Montreal trucking company owner only learned of a six-figure director’s liability assessment when his personal accounts were frozen by Revenu Québec – a scenario to avoid at all costs.

Directors have a possible defense by demonstrating “due diligence” – essentially proving that they took all reasonable steps to prevent the tax default. But in practice, once a business’s tax debt exists, the onus is on the director to show they were proactive (e.g. making sure remittances were up to date or acting quickly to fix lapses). Resigning from a directorship doesn’t immediately absolve you either; under federal law (CBCA s.119), a director remains at risk for up to two years after leaving, and in Quebec up to six years, for liabilities that arose while they were at the helm. Bottom line: If you sign on as a director of a trucking company – even your own one-truck corporation – you are expected to ensure compliance with tax remittances, or potentially pay out of pocket.

Owner-Operators and Sole Proprietors: If you run as a sole proprietor (unincorporated), you and the business are the same legal person – which means unlimited liability. All business debts, from bank loans to tax arrears, are your personal responsibility. CRA can garnish your personal income or seize assets to satisfy tax debts incurred by your trucking operations just as easily as if those debts were personal. In addition, sole proprietors lack the ability to pay themselves a tax-free per diem allowance (more on that later) – you must deduct actual expenses on your return and bear the compliance burden directly. Many owner-operators eventually incorporate for both tax flexibility and to get that corporate liability buffer. However, incorporation comes with compliance responsibilities: as the owner-director of your new company, you must make payroll remittances for yourself and any employees, charge and remit GST/QST once you cross $30,000 in revenues, and file corporate tax returns. If you skip these, the liabilities circle right back to you personally despite having a company.

“Driver Inc.” and Misclassification Risks: A notable issue in the trucking sector is the Driver Inc. model, where carriers encourage drivers to incorporate themselves rather than be employees. While not illegal per serevenuquebec.ca, this practice shifts the employer’s tax burdens onto the driver’s corporation. If you operate under a “Driver Inc.” arrangement, be aware that both CRA and Revenu Québec may scrutinize your setup. They can deem your one-person corporation to be a personal services business (PSB) – essentially saying it’s a shell to avoid employee status. If that happens, the tax consequences are severe: a PSB cannot claim the small-business tax rate and loses most deductions (it can deduct basically only the owner’s salary and a few benefits). For example, if you drive exclusively for one carrier who dispatches you, provides the trailer, and controls your work like an employer, your corporation could be denied expense deductions for fuel, meals, cell phone, etc. and taxed at full corporate rate (currently 38% federal in a PSB scenario) on net income. Moreover, misclassifying an employee as an “independent” corporation can lead to retroactive assessments for unpaid CPP/QPP contributions, EI, and even vacation pay or workers’ comp premiums. The courts look at the reality: if you incur no business risk, own no truck, and essentially have a job with one company, incorporation won’t fool them. The key message: Incorporation is a powerful tool for true owner-operators, but it’s not a magic wand – use it legitimately, with multiple clients or assets, or risk both tax and labor law backlash.

Other Liability Considerations: Trucking company owners also face potential liability in areas like environmental fines (e.g. fuel spills), highway traffic violations, or cargo claims. While insurance is the first line of defense, maintaining the corporate veil (through proper bookkeeping and legal separation of personal and business affairs) is crucial to avoid “piercing” – where a court might hold an owner personally liable for company actions if corporate formalities are ignored. Always separate your personal finances from the business: have distinct bank accounts, keep proper records, and follow corporate laws (like annual filings). Remember that if you personally guarantee a truck lease or loan – a common requirement for small trucking startups – you are on the hook if the company can’t pay. In summary, being your own boss in trucking means wearing two hats: you’re the driver earning income, but also the accountant/CEO ensuring taxes and obligations are met. Neglecting the latter can put your house, savings, and livelihood at risk. When in doubt, consult a CPA or legal advisor to understand your exposure and put protections in place.

Jurisprudence: Key Tax Court Decisions for Trucking and Logistics

Over the years, numerous court cases have defined how truckers’ expenses and liabilities are treated. Understanding this jurisprudence helps you appreciate what flies (and what doesn’t) with CRA and Revenu Québec. Here are some landmark decisions and legal battles that impact trucking and logistics accounting:

• Per Diem Class Action (2007): In the mid-2000s, a group of long-haul truck drivers spearheaded a class-action lawsuit arguing they should be allowed to deduct meal expenses at the same flat daily rate given to federal government employees (around $73 per day at the time). This case, led by a B.C. lawyer, made it through multiple courts but was ultimately dismissed by the Supreme Court of Canada. The courts held that tax deductions and employer allowances are not equivalent – just because government workers receive a per diem doesn’t entitle truckers to the same without employer reimbursement. This effectively shut down the idea that truck drivers could unilaterally claim a high fixed daily amount. The outcome reinforced that truckers must abide by the Income Tax Act limits (50% or 80% of reasonable expenses), unless an employer provides an allowance. The silver lining? It highlighted the strategy that an incorporated owner-operator can have their corporation pay them a reasonable per diem as a nontaxable benefit (more on that in the Salary vs Dividends section).

• Tax Court on Reasonable Meal Expenses (2012): While the class action failed, individual truckers have won victories by demonstrating the reasonableness of their claims. In one Tax Court case, a long-haul driver’s meal expense deductions were initially cut by CRA from $40/day to the “guide” amount of $33/day (CRA’s simplified rate at the time for North America). The judge ruled in the driver’s favor, noting that federal civil servants were allowed $48/day and that $40 was entirely reasonable for a trucker in the U.S. given higher costs. The court essentially said CRA’s guideline is not a hard cap – if you can justify higher costs (especially when working in the U.S. with higher meal prices or exchange rates) and you have strong documentation (logs, receipts), you can claim more. This set a precedent that courts will side with truckers who exceed the standard per diem, provided the claim is supported and reasonable. It’s a reminder that keeping detailed records can literally pay off in a court appeal.

• Meals are Inherently Personal (FCA, 1998 – Scott v. Canada): In this Federal Court of Appeal case, a foot courier (not a trucker, but analogous in terms of trying to claim extra food) argued that due to the physical nature of his job he needed an extra meal each day and tried to deduct a flat $8 for extra food plus $3 for drinks dailytaxinterpretations.com. The court upheld the longstanding principle: food and drink are personal expenses unless falling under specific provisions of the tax lawtaxinterpretations.com. Justice Iacobucci in Symes (cited in Scott) put it clearly – a need that exists apart from business (like basic nourishment) is personal, even if it helps you perform your work bettertaxinterpretations.com. This case reinforced why truckers normally get only a 50% deduction for meals – we all have to eat, job or not. The only reason truck drivers have an 80% exception is because Parliament created one for long-haul situations. The takeaway is that courts will not extend deductions beyond what legislation explicitly allows. So, if you’re trying any aggressive claims (say, writing off lavish restaurant outings as “business meetings” or deducting all groceries on the road), know that the jurisprudence is not on your side. Stick to the well-trodden path – or risk an ugly day in Tax Court.

• Driver vs Contractor – Personal Services Business Risk: While not one specific case, a series of rulings have tackled the “Driver Inc.” issue. Courts use multi-factor tests to determine if an incorporated driver is actually an employee. For instance, factors like who owns the truck, who takes on financial risk, and the exclusivity of the relationship are examined. In several judgments, corporations set up by drivers were denied the Small Business Deduction because the facts showed an employer-employee relationship in all but name. For example, if a trucking company provides the truck and pays operating costs (fuel, maintenance), and the driver’s “corporation” basically just passes through their wages, the Tax Court will deem it a Personal Services Business (PSB). One high-profile enforcement involved CRA identifying dozens of such driver corporations in a single audit and assessing them as PSBs, resulting in significant tax bills since their income was then taxed at the full corporate rate and prior expense deductions were disallowed. The legal trend is clear: simply incorporating is not a free pass – the substance of the working relationship prevails. Transport companies and drivers should heed this jurisprudence and ensure that if a driver is incorporated, they truly operate like an independent business (own or lease equipment, have multiple clients or the freedom to obtain them, take on risk like deadhead miles or maintenance costs, etc.). Otherwise, both parties could face tax and legal consequences (including Employment Standards actions for unpaid benefits).

• Director Liability Cases: In the realm of owner liability, cases like Buckingham v. The Queen (2011) have underscored that directors are on the hook for company tax debts unless they actively did everything possible to prevent the failure. And Wheeldon (1999) clarified CRA must show you were a director at the time and didn’t exercise due diligence – simply being a figurehead won’t excuse you. These aren’t trucking-specific, but they apply to trucking company owners who often wear the director hat. The message from jurisprudence is that courts support CRA’s aggressive stance on holding directors liable; however, they will also uphold a due diligence defense if you can document that you tried to keep the company compliant (for example, if you were misled by a partner or had illness or other valid reasons, backed by evidence).

In summary, the courts have generally affirmed the strict rules but have also provided relief when taxpayers present solid evidence and logical arguments. For trucking professionals, the jurisprudence teaches a dual lesson: be conservative and by-the-book in what you claim, but be meticulous in your recordkeeping so you can defend every claim you do make. If pushed to an audit or appeal, reasonableness and documentation carry a lot of weight with judges, sometimes even trumping CRA’s published guidelines.

CRA and RQ Audit Risks in the Trucking Industry

The trucking industry is a prime target for tax audits. Both the Canada Revenue Agency (CRA) and Revenu Québec (RQ) keep a close eye on transport businesses – from single owner-operators to large fleets – because of the high potential for expense claims and cross-border transactions. Knowing what triggers audits (and how to avoid those red flags) can save you from costly reassessments. Here are some common audit risks and pitfalls unique to trucking and logistics:

• Mileage and Logbook Discrepancies: As a trucker, your logbook is your first line of defense in an audit – and conversely, a top target for auditors. CRA will cross-verify your fuel receipts, delivery records, and logbook entries to ensure they all align. If your logs show you in Montreal on a certain date but you claimed meals for a trip to Texas, expect an audit query. Electronic Logging Device (ELD) data has made it easier for auditors to spot inconsistencies; they may request GPS records or ELD printouts. In short, any logbook tampering or gaps (missing days, unexplained odometer jumps) are huge audit red flags. RQ auditors similarly use Quebec’s stringent recordkeeping rules to deny expenses that aren’t backed by proper logs. Best practice: keep your logs accurate to the minute, and retain them for the required period (at least 6–7 years for tax).

• Missing or Insufficient Receipts: The phrase “no receipt, no deduction” holds especially true in trucking. Common audit finding number one: meal expenses without receipts. Owner-operators often rely on the simplified meal allowance, which doesn’t require receipts for each meal, but you must still have a record of days and trips for which you claimed the per diem. If you attempt to claim actual expenses, you need every single receipt neatly filed. Auditors routinely deny or reduce claims for “Monday to Friday $69/day” type meal claims if you cannot produce logs to prove you were on the road those days. Likewise, fuel and maintenance expenses are scrutinized. A “fuel” expense without a gas station receipt (or missing key info like the vendor GST number) can lead to denied input tax credits and deductions. Many truckers pay cash for occasional services (tire repair, truck wash) – but without an invoice, CRA may disallow it. Also, be cautious with credit card statements alone; they may not satisfy CRA unless they detail what was purchased. Audit risk: HIGH if you are claiming large expenses but have a shoebox of incomplete records. Auditors know life on the road is hectic, so they love to exploit sloppy recordkeeping.

• Excessive Meal Claims or Per Diems: CRA has detailed stats on what long-haul drivers typically claim for meals. If you are consistently claiming the maximum per diem ($69/day, 80% deductible) for every single day you’re away, or if you claim significantly more meals than days worked, expect questions. Revenu Québec also looks at provincial TL2 forms (or TP-66 in Quebec) to ensure the number of trips matches the deductions taken. Another risk: claiming the 80% deduction when you don’t qualify (e.g., your trips were under 24 hours or under 160 km). Auditors will look at dispatch logs to see if your trips truly meet the “eligible travel period” definition. If not, they’ll roll your meals back to 50% deductible – plus charge interest on the extra tax you should have paid. Tip: If you’re a local or short-haul driver, don’t try to piggyback on the long-haul rules. It’s an easy catch for CRA.

• High Fuel Expenses Relative to Mileage: Fuel is typically a trucking company’s #1 expense – but it should be proportional to miles driven and the type of truck. CRA and RQ often run analytics comparing your fuel claims to your reported mileage (from logs or IFTA reports) and even to industry norms. If your fuel cost per km is out of whack, it raises suspicion. Sometimes there’s a legit reason (idling in winter, heavy loads, older truck), but you need to be able to explain it. A common audit discovery is that some fuel put in the truck was used personally (say you fueled the truck and then used it for a weekend trip – that portion is not deductible). Auditors may also check if you’re claiming fuel for non-trucking vehicles. We’ve seen cases where an owner had a pickup truck and a rig and was buying diesel for both on the business card – CRA disallowed the pickup’s fuel since it wasn’t used primarily for commercial runs. Maintain a fuel log that ties to each trip’s mileage and watch out for claiming fuel during periods the truck was down or you were on vacation – yes, auditors look for that!

• GST/QST Input Tax Credit Errors: Because trucking businesses often have significant input tax credits (ITCs/ITRs) – fuel, repairs, lease payments on a $200,000 rig, etc. – they are ripe for sales tax audits. CRA’s GST auditors love the trucking sector, and RQ is aggressive on QST audits as well. Specific risks include: claiming ITCs on expenses that are not actually business-related, claiming GST on fuel purchased in the U.S. (where no GST applies), or claiming credits without proper invoices. Remember, an ITC requires a valid tax invoice: for expenses over $150, the invoice must have the supplier’s GST/QST registration number and your business name, among other details. Many small repair shops or truck stops provide handwritten receipts that lack this info, and CRA will deny those credits. Additionally, if you run multiple companies (e.g., a holding company owns the truck and leases it to an operating company), be careful that only the entity that paid for the expense and is using it in commercial activities claims the ITC – we often see holdcos mistakenly claiming ITCs while not actually carrying on taxable activities (a big no-no). Lastly, large refunds (say you bought a new truck and are claiming $30k in GST back) are almost guaranteed to trigger a review before CRA issues the money, so have your documentation ready (bill of sale, financing documents, proof of payment).

• Unreported Revenue and Cash Transactions: While much of trucking is above-board (freight invoices paid via cheque or EFT), there are still grey areas – for instance, loading/unloading fees in cash, extra stop fees, or doing the odd cash delivery on the side. CRA’s auditors may compare your logbook to your invoicing. If your logs show 250 trips but you only issued invoices for 200, they’ll ask about the other 50. Revenu Québec is notorious for closely examining bank deposits versus reported sales, especially if you’re depositing customer cheques into personal accounts or mixing funds. Any hint of unreported income (even by accident) can expand a limited audit into a full-blown net worth audit. Also, with electronic freight brokerage platforms, CRA can sometimes obtain third-party records (for example, if you hauled loads through a load board or broker, CRA can match those 1099 forms or broker payment records to what you reported). Pro tip: Report all your gross income. The tax saved by omitting a few runs is never worth the potential penalties and headaches if discovered. Both CRA and RQ can levy gross negligence penalties or even pursue fraud charges for deliberate underreporting.

• Large Repairs and Maintenance Deductions: Given the cost of truck parts and service, it’s not unusual for a single-owner rig to incur $50,000+ in maintenance in a bad year (engine overhaul, new transmission, etc.). But auditors will flag if your repairs seem disproportionately high. They might suspect you are expensing capital improvements (that should be depreciated as assets) or that you might be double-claiming (e.g., expensing a repair that was covered by warranty or insurance). Always keep detailed repair orders. If you replaced an engine, that’s likely a capital expense to be added to the truck’s capital cost (though under accelerated depreciation rules you might write it off quickly anyway). Another frequent error is expensing personal vehicle costs as if they were part of the trucking business – e.g., repairing your family car at the same garage as the truck and lumping it in. If audited, those will be separated and disallowed. Also, if you claim tire replacements every year far above normal, expect a question (unless you truly run extremely high mileage or harsh routes). Auditors often have industry guides; if you claim $100k repairs on a single truck that usually averages $20k, they’ll dig in.

• IFTA and Cross-Border Issues: Auditors in Quebec and CRA can also collaborate with the Ministry of Transport or US IRS on cross-border issues. One specific risk: if you don’t file IFTA returns or file them late, it not only incurs fuel tax penalties but also puts you on the radar for a tax audit. IFTA requires quarterly returns even if you had no mileage (a zero return). A pattern of late IFTA filings (or, worse, not filing at all) can lead to an audit where they estimate your fuel usage and mileage – often not in your favor. Similarly, if your IFTA reports show a certain mileage but your tax return shows a different mileage for the year, CRA may question the discrepancy. Another cross-border area: US income tax – generally, Canadian truckers who just drive in the US and come back don’t owe US income tax, but if you end up doing interstate work under a US DOT number or through a US agent, there might be US state taxes to consider. Ensure you clarify with a tax professional if you have any US-sourced trucking income. From the Canadian side, hauling freight to or from the US is zero-rated for GST/HST purposes (international transport), which is good (no GST to charge), but you need to maintain paperwork proving the cross-border nature of the haul in case CRA asks. Failing to do so could result in CRA assessing GST on what should have been a zero-rated route because you lacked evidence of delivery outside Canada.

In summary, the CRA and Revenu Québec approach trucking audits with a fine-toothed comb, cross-referencing multiple sources of data (logs, fuel cards, freight bills, IFTA, GPS) to sniff out anything amiss. Common errors that trigger audits include: missing meal receipts or logs, implausible fuel versus mileage figures, claiming personal expenses as business (meals for your spouse, fuel for your pickup, etc.), not charging GST/QST when required, or continual late filing of returns. The best defense is preparation – maintain immaculate records, be consistent in your reporting, and work with a CPA to review your filings if you’re unsure. When you have your “ducks in a row,” even if you do get audited, it becomes a simple exercise of providing the documents and watching the auditor close the file with no changes. It’s all about staying off the radar – and if on the radar, having nothing to hide.

Late Filing Penalties and Consequences

In the fast-paced world of trucking, it’s easy to let paperwork deadlines slip. Unfortunately, late filing can sting badly in the form of penalties and interest – and truckers have more filings to worry about than most businesses (think: income tax, GST/QST, IFTA, IRP, payroll, etc.). Here’s a rundown of key deadlines and what happens if you miss them:

• Personal Income Tax (Sole Proprietors): If you’re an unincorporated owner-operator, you have until June 15 to file your personal tax return in Canada (since you have self-employment income). However, any balance owing is due by April 30. Filing even one day late past the deadline (if you owe tax) triggers a 5% late-filing penalty on the balance owing, plus 1% of the balance per full month late (up to 12 months) at the federal level, and Quebec applies its own penalties similarly. For example, if you owed $10,000 and file in July, that’s an initial $500 penalty plus 1% per month (so roughly $100 for each month after April). On top of that, CRA and RQ charge daily interest (around 7% annually, compounded daily) on overdue taxes and on the penalties. If you were late in filing for a previous year as well, the penalty doubles to 10% + 2% per month on federal side – ouch. Tip: Even if you can’t pay right away, file on time to avoid the late-filing penalty, and then arrange a payment plan for the balance.

• Corporate Income Tax: Incorporated trucking companies must file a T2 return within 6 months of their fiscal year-end. For most, that means by June 30 (if year-end December 31). Any tax owing is due within 2 months of year-end (3 months for eligible small CCPCs). The late-filing penalty for corporations starts at 5% of the unpaid tax plus 1% per month, similar to personal. However, one wrinkle: if your corporation was eligible for the small business tax rate and you file the return late, you can lose the Quebec small business deduction for that year, which significantly hikes the provincial tax rate. Quebec has a strict rule that an otherwise eligible corporation forfeits the reduced rate in any month the return is over-due. This essentially penalizes you twice for late filing (penalty + higher tax rate). Federal doesn’t have an equivalent rule, but it’s reason enough to never be late with a Quebec corporate return.

• GST/HST and QST Returns: As a trucking business, you likely file GST/HST and QST either quarterly or annually, depending on your revenue. Missing a filing or payment here is serious because, as discussed, directors can be personally assessed. The standard penalty for late GST filings is 1% of the amount owing plus 25% of the 1% multiplied by the number of months the return is late (up to 12). Practically, if you owed $5,000 GST and filed 5 months late, the penalty would be 1% of $5,000 ($50) + 25% of $50 * 5 months = $50 + $62.50 = $112.50, plus interest. That may not sound huge, but remember that not filing at all is even worse – CRA can arbitrarily assess you. For QST, Revenu Québec’s penalties are on a similar scale. If you find yourself unable to compile the figures in time, at minimum make the payment by the due date based on an estimate to reduce penalties, then file as soon as possible.

• IFTA Quarterly Reports: IFTA returns are due four times a year (April 30, July 31, Oct 31, Jan 31). Many a trucker has learned the hard way that IFTA late penalties are steep: a flat $50 or 10% of the tax due, whichever is higher, for filing even one day late. So if you owe only $100 in fuel tax but you’re late, the penalty is $50 (which is 50% of your tax!). If you owed $1,000, the penalty is $100. In addition, interest accrues on any unpaid tax at about 0.4167% per month (5% annually) per IFTA rules. Critically, if you don’t file at all, IFTA can actually revoke your license – meaning you’ll be driving illegally in other jurisdictions. They will also eventually issue an assessment (often over-estimating miles and under-estimating fuel to maximize the tax due) and send collections after you. If you realize you missed a deadline, file ASAP – IFTA penalties don’t max out, and each quarter is a separate violation. Revenu Québec, as the administering body, will also require you to post a bond or pay off everything before reinstating a suspended IFTA license. The IFTA audit penalties can be even more severe if an auditor finds you kept poor records or underreported – fines up to $5,000 and potential criminal charges for fraud if intent is shown. In short: set reminders for IFTA deadlines and never ignore them, even if you had zero travel one quarter (you must file a nil return).

• IRP (International Registration Plan): Similar to IFTA, if you’re apportioning your vehicle plates across jurisdictions, you have renewal filings and periodic mileage reporting. Missing an IRP renewal can put you out-of-service if caught. While IRP is more of a registration system than a tax, late renewals usually incur late fees and you can’t operate legally until paid.

• Payroll Remittances and T4s: If you have a corporation and pay yourself (or other drivers) wages, you need to remit source deductions either monthly or quarterly. CRA charges a late remittance penalty on payroll withholdings that starts at 3% (1-3 days late), 5% (4-5 days), 7% (6-7 days), or 10% (more than 7 days or repeated lateness) of the amount due. That’s per occurrence. So being a week late on a $5,000 payroll remittance could cost $500 in penalties. Filing the T4 slips late (due the end of February) also attracts a penalty ranging from $100 up to $1,500 depending on how many slips and how late. For small operations, the penalty might be on the lower end, but it’s easily avoided by staying on schedule. Remember: if you’re a one-man corporation, it’s tempting to not bother with payroll and just take draws or dividends – but if you want to contribute to CPP or use the per diem allowance strategy properly, you likely need to issue yourself a T4. So then you must meet these deadlines.

Consequences of Chronic Late Filing: Beyond the dollar penalties, repeatedly filing late puts you on the tax authorities’ radar. CRA uses risk scoring – a habit of delinquency can trigger closer scrutiny or even audits, under the assumption that disorganized books might hide other issues. Revenu Québec can also withdraw privileges like your Quarterly filing status (forcing you into monthly filings to keep a closer watch on you). In egregious cases, they can demand you post security (a cash deposit) for GST/QST if they feel collection is at risk. Worst case, persistent failure to file can result in legal action – under the law, not filing a tax return when owing tax is actually an offense that can lead to prosecution (fines or jail in extreme cases, though rare for small businesses).

Practical Tips: Mark all your key deadlines on a calendar (financial quarter ends, tax due dates). Many truckers on the road use accounting services or bookkeepers specifically to avoid missing deadlines – it can be money well spent. Also consider early filing: for example, if your fiscal year ends Dec 31, you don’t have to wait till June to file corporate taxes – doing it by March or April gives you one less thing to worry about (and if expecting a refund, faster cash). Use CRA’s online services or RQ’s Mon Dossier to monitor your accounts – they often show if something is outstanding. And if you do miss a deadline, act quickly: every additional month adds to penalties, and at some point the file might transfer to collections or legal enforcement. By staying compliant with filing requirements, you keep your freedom to operate – and you can focus on hauling loads, not dealing with government agents at your door.

Industry Operational Realities and Their Accounting Impact

The trucking and logistics industry isn’t a typical desk-bound business, and its on-the-road realities directly shape how you need to manage your accounting and tax compliance. Understanding these operational factors will help you implement practical systems that work for you, the busy trucker or fleet manager, rather than against you. Let’s look at some day-to-day industry realities and the implications for your books:

1. Life on the Road – Decentralized Recordkeeping: Unlike a retail shop or an office, a trucking business is inherently mobile. You (or your drivers) are on the highway 10-12 hours a day, often far from home. This makes keeping track of paperwork a real challenge. Meals, fuel fills, repairs – you accumulate a trail of receipts across the map. The reality is that without a solid system, receipts get lost, logs get sloppy, and transactions get missed. Successful owner-operators often develop habits like using a dedicated credit card for all truck expenses, with an app to snap photos of receipts on the go. Many use trucking expense management apps or even just accordion folders in the truck cab sorted by category (fuel, meals, tolls, etc.). The ELD or logbook can often record notes or images – utilize that for noting expenses tied to each trip. Also consider the timing: truckers might fuel at 3 AM or cross a border on a weekend; you can’t rely on contacting your accountant immediately. Instead, set aside time each week (perhaps on a 34-hour reset or a weekend off) to organize that week’s records and enter them into a spreadsheet or software. Operational reality: If you don’t proactively capture records while on the move, reconstructing them later is extremely difficult. Embrace technology and routine to bring some “office order” to the highway chaos.

2. Long Hours and Fatigue – Risk of Errors: Truckers work long, tiring hours. After driving 1,000 km in a day, no one is excited to do bookkeeping at night. This leads to a common reality: many drivers put off their recordkeeping for months, especially if they’re single-owner operations. By the time they sort receipts, some are faded or lost, and entries are forgotten. Fatigue also means you might make mistakes – like logging the wrong mileage or forgetting to log a cash expense. The implication is to simplify and automate wherever possible. For instance, use a fuel card that provides an electronic statement breaking down all fuel stops – that alone can save you from manual tracking (and it’s great audit evidence). Use GPS or ELD exports to automatically compile mileage by state for IFTA. If you’re too tired or busy, consider outsourcing the basics – there are bookkeeping services that specialize in trucking, where you can literally mail them an envelope of receipts and logs, and they’ll handle the data entry. It’s an added cost, but it can pay for itself by ensuring nothing critical falls through the cracks. Remember, CRA doesn’t accept “I was busy driving” as an excuse for missing information.

3. Cash Flow Crunch and Irregular Revenue: Trucking income can be lumpy and often slow-paying. You might have months of high revenue followed by a slow season, and shippers or brokers can take 30-60 days (or more) to pay invoices. Meanwhile, fuel and repairs are daily expenses, and payroll or personal bills don’t wait. This feast-or-famine cash flow means truckers sometimes rob Peter to pay Paul – for instance, using GST collected from clients to buy fuel, intending to catch up later. It’s a dangerous game: when GST/QST remittance time comes, you might find yourself short. Also, the timing of income can push you into a higher tax bracket unexpectedly for the year, then a slump could mean a low-income year. Tax planning and budgeting are crucial. Set aside a portion of each payout in a separate savings account for taxes (some set aside ~20-25% of each deposit for income tax and 5% for GST if applicable). Also, consider aligning your fiscal year-end with a slow period – for example, many trucking companies choose December 31 or June 30 year-ends. If your big money comes in the summer construction season, a June 30 year-end might mean your peak cash is captured in one fiscal year and the slowdown in the next, smoothing taxes. On the other hand, a Dec 31 year-end means you might be flush with holiday-season work revenue but also have high year-end maintenance costs to deduct. Think about what aligns with your operation. Additionally, because fuel prices and repair needs are unpredictable, maintain a contingency fund. From an accounting perspective, this can be a retained earnings reserve in a corporation or simply a business savings for a sole prop. It helps you avoid skipping tax payments during crunches.

4. Cross-Border Operations and Multi-Jurisdiction Compliance: Many Quebec trucking companies regularly cross into Ontario or the U.S. This means dealing with different tax regimes and rules. For instance, toll receipts on New York Thruway or Ohio Turnpike – are they deductible? (Yes, they’re a business expense; and GST doesn’t apply on U.S. tolls but you can deduct the full cost.) What about state fuel and sales taxes you pay in the U.S.? Those aren’t recoverable like GST, they are just part of your expense. However, you must still convert all U.S. expenses to CAD using an acceptable exchange rate (CRA typically accepts the Bank of Canada quarterly or annual average rate, or actual credit card rates). If you earn any US-source freight income (beyond just through Canada-based brokers), you might need to file a U.S. tax return or at least a treaty-based exemption – check with a tax advisor if you regularly haul intrastate loads in the U.S. Also, crossing into multiple provinces triggers place-of-supply rules for sales tax: if you invoice a customer for hauling from Quebec to Ontario, you should charge GST (5%) and not QST (since the service is zero-rated QST for interprovincial transport, and HST doesn’t apply because origin is QC). If that sounded complicated, it is – fortunately, most freight is simply GST 5% in Canada (and QST 9.975% if origin and destination both in Quebec). But keep an eye on interprovincial jobs and ensure you apply the correct taxes. From an operational view, IFTA and IRP reporting are continuous burdens – the reality is you must collect mileage data and fuel data in real time. It’s nearly impossible to recreate later (imagine trying to recall which route you took through New Brunswick six months ago). So, the operational solution is to integrate compliance into your routine: for example, many drivers keep a notebook or electronic log where they jot down odometer readings at each provincial/state border, which greatly eases IFTA reports. In short, crossing borders means double the compliance: tax and regulatory. But with good systems (ELDs, fuel cards, dispatch software that tracks mileage), you can handle it without losing your mind.

5. High Capital Costs and Financing: Trucks, trailers, reefers – these are big-ticket items. A new highway tractor can cost $180,000 or more; even a used one might be $80k+. Most trucking businesses rely on financing or leasing for equipment. The accounting reality is that you’ll have loan payments or lease payments as a major monthly expense. Understanding how those work on your books is key. Loan principal payments are not deductible (only the interest is, along with depreciation on the asset). Lease payments, on the other hand, are fully deductible as an expense if it’s an operating lease. However, high lease payments could trigger CRA to see it as a financing arrangement if the lease is for essentially the full value of the truck over its life. Work with your CPA to ensure leases are structured and reported properly. Also, many lenders require quarterly financial statements – an operational headache because it forces you to keep books up to date. On the positive side, financing a truck means you may be able to use accelerated Capital Cost Allowance (CCA) to write off a good chunk of the asset cost in the first year (the government has often provided enhanced CCA for equipment to stimulate investment). Operationally, this means timing your purchases can be a tax strategy: e.g., buying a truck in December versus January can allow some depreciation in the earlier tax year. But you must balance that with cash flow and business need. Additionally, the reliance on financing means you must keep a close eye on debt covenants (if any) and ensure timely payments – one missed truck payment can cascade (late fees, risk of repossession, etc.). So build those payments into your budgeting as fixed costs. Many truckers treat their loan or lease payment as essentially a “cost of doing business” like fuel and pay it before drawing any personal income.

6. Maintenance Cycles and Downtime: Trucks need regular maintenance and occasionally major overhauls. Industry reality: you will have unscheduled downtime. Breakdowns not only cost for repairs but also lost revenue while the truck is in the shop. It’s wise to have a maintenance reserve fund. Accounting-wise, large repairs can sometimes be capitalized (if they significantly extend the life of the asset), but generally most maintenance is expensed. The unpredictability of these costs means your profit can swing dramatically year to year. One year you might have no major repairs, next year you blow an engine for $40k. Tax planning perspective: you might use a good year to invest in preventive maintenance or even prepay some expenses (tires, parts) to level out your taxable income. Also, keep documentation of any warranty reimbursements – if a repair was claimed as an expense and then the manufacturer reimbursed you under warranty, that reimbursement is income (or reduces your expense) in the year received. Operationally, many trucking firms schedule major maintenance in the off-season (for example, a construction-oriented dump truck might do an engine rebuild in winter). Align this with your fiscal year if possible – e.g., if your slow season is Nov-Feb, having a year-end in that window could cluster the big expenses in one tax year.

7. Driver Turnover and Payroll: If you operate a fleet or even have one employee driver, you know driver turnover is high in this industry. This has an accounting impact: hiring and layoffs mean Records of Employment, final pay calculations including accumulated vacation, etc. It also means any sign-on bonuses or referral bonuses are deductible expenses (and maybe should be amortized if they cover a period of work). Keep good records of advances to drivers for trips, and reconcile them against their expense reports – one common mess in trucking companies is not tracking driver advances properly, leading to confusion over whether an expense was company-paid or driver-paid. Also, consider the tax implications of benefits: if you provide motels or meal per diems to company drivers, are those within CRA allowances or do they become taxable benefits? Generally, a reasonable travel allowance (like a fixed cents/km or per day for meals that is within CRA limits) can be tax-free for the driver and fully deductible to you, the employer. But if you get too generous or don’t substantiate it, CRA could disallow your deduction or even taxable benefit the driver. The reality of constant hiring means make sure each new driver fills out TD1 forms (federal and provincial) so you deduct the right taxes. And if you use “contractors” (not employees) as drivers, refer to the earlier discussion – ensure they truly are independent, or you might face payroll audits reclassifying them.

8. Technology Integration: Modern trucking is increasingly tech-driven. ELDs, fleet management software, fuel optimization tools, dash cams, etc. This generates a lot of data that, if harnessed, can make accounting easier. For instance, some telematics systems can produce an “IFTA report” automatically by tracking miles by jurisdiction – eliminating manual calculations. Embrace these if available; they save time and reduce errors. On the flip side, technology costs money – subscription fees for software, upgrades for ELD hardware – which are deductible, but you should budget for them. Cybersecurity and data backup become an issue too: losing your electronic logs or invoice records in a computer crash could be catastrophic for an audit, so invest in proper backups or cloud systems. The industry reality is that successful trucking businesses in 2025 are as much data businesses as they are transport businesses. Those who use data (to monitor fuel economy, driver performance, routing efficiency) often see lower costs and have better documentation. If you’re old-school and prefer paper, that’s fine, but consider gradually introducing tech for critical areas like compliance and billing – it can actually free up your time in the long run (less time doing paperwork means more time on the road earning).

9. Regulatory Compliance Overlap: A trucking operation deals with multiple regulatory bodies: DOT/MTO for safety, CBSA/US CBP for customs, CRA/RQ for taxes, provincial transport ministries for permits, etc. Often, compliance in one area helps in another. Example: logbooks (safety) support your meal claims (tax). Vehicle inspection reports (which note odometer readings) can be evidence in an audit about mileage. Bills of lading prove delivery locations (supporting zero-rated GST on international shipments). So, don’t silo your compliance efforts. Keep your safety, customs, and financial records in sync. In an audit, providing a unified story – where logbook, bill of lading, fuel receipt, and invoice all tell the same story for a trip – makes the auditor’s job easy (and results in no change). Industry life is such that you’re always dealing with some paperwork; leverage it for multiple purposes. Also, be aware of operational mandates like ELD (now required in Canada for federal routes): they can actually make compliance easier by standardizing records.

In essence, the gritty realities of trucking – the long hours, the border crossings, the big rigs and big bills – all translate into a unique accounting ecosystem. The key is to implement processes that mesh with those realities. Acknowledge that you’re not a neat nine-to-five office – so use tools and strategies that fit a trucker’s life. This might mean hiring a bookkeeper to work in the background while you’re on the road, or using your rest breaks to photograph receipts rather than keeping a handwritten ledger. The more your accounting can run on autopilot in sync with your operations, the more time you have to focus on driving and business growth, with confidence that compliance is handled.

Best Practices for Mileage Tracking, Per Diems, and Fuel – A CPA’s Advice

Having covered the pitfalls and requirements, let’s switch gears to a positive outlook: What are the best practices that successful trucking businesses use to stay on top of their accounting and taxes? As a CPA firm deeply involved with Montreal’s trucking and logistics sector, we at Mackisen have developed a toolkit of best practices that make a world of difference for compliance and profitability. Here’s a checklist of tried-and-true strategies:

✓ Maintain Detailed Logbooks and ELD Reports: Your logbook is gold when it comes to substantiating mileage, travel days, and eligibility for deductions. Best practice is to go beyond the minimum – don’t just log start/end and hours. Record locations for each break, odometer readings at each state/province line, and notes if any personal detours occur. With ELDs, learn how to annotate personal conveyance vs. business use properly. As a rule, ensure every claim on your tax return can be tied to a log entry. For example, if you claim 250 days of meals, you should have 250 days marked in logs as on the road. A neatly kept logbook (with electronic backups) impresses auditors and often stops questions in their tracks. Pro Tip: Some drivers keep a parallel expense diary – a small notebook where they jot down daily expenses next to their log entries (e.g. “Day 5: Calgary – bought 300L diesel $X, Lunch $Y”). This cross-reference can be extremely helpful later when matching receipts to trips.

✓ Leverage Technology for Tracking: In the 2020s, the best practice is “automate and integrate”. Use a dedicated trucking accounting software or at least a well-set-up QuickBooks with categories tailored to trucking (fuel, maintenance, meals, etc.). Many software solutions can import data from your fuel card or ELD automatically. For example, Motive (formerly KeepTruckin) and other ELD providers have add-ons that generate IFTA reports, and fuel card companies like EFS provide transaction downloads. By integrating these, you reduce manual data entry (which means fewer errors). Another best practice is using scanning apps for receipts – something like Expensify or even just CamScanner – so you have a digital copy of every receipt that can’t fade or get lost. Store these in cloud folders by month. Not only does this save physical space, but in an audit you can quickly retrieve documents. Remember, CRA accepts digital copies of receipts as long as they are legible and contain all info. Some companies even go further: installing telematics that track fuel usage (by monitoring engine data) to double-check fuel purchases versus consumption – this can flag theft or leaks and also impresses an auditor that you’re tightly controlled. In short, let technology handle the grunt work of tracking and math, freeing you to focus on the business.

✓ Separate Personal and Business Finances Completely: This is a fundamental best practice for any business, but especially in trucking where the temptation to blur lines is high (e.g. buying personal groceries at the truck stop along with fuel on one receipt). Have a dedicated business bank account and credit card. Pay all truck-related expenses from that account, and deposit all freight income into it. Pay yourself a salary or draw to your personal account for living expenses. This creates a clear audit trail. If you must use cash on the road (some small shops only take cash), consider taking a float out from your business account and keep a petty cash log to reconcile it. Mixing personal and business transactions not only risks losing deductions (auditors will snip out anything that looks personal), but also complicates bookkeeping. An owner-operator who runs their finances cleanly like a separate business tends to save money in accounting fees and avoids errors. One specific tip: if you do occasionally use a personal card for a business expense (or vice versa), account for it properly – e.g., record it as a payable reimbursement. But strive to keep such instances rare.

✓ Use the CRA Per Diem Simplified Method (Where Appropriate): For meal expenses, the simplified method (per diem) is often a trucker’s best friend. Instead of hoarding piles of meal receipts (that may be scrutinized for reasonableness anyway), you can claim a flat $23 per meal, up to 3 meals a day (so $69/day) – and long-haul drivers then deduct 80% of that. This method drastically cuts paperwork. It’s widely accepted in CRA audits because it’s standardized. Best practice: still keep a log of the days you were on the road and eligible (the TL2 or a diary signed by your employer if you’re a driver, or your own statement if self-employed). Don’t abuse it by claiming days you were home. The per diem covers meals and incidental snacks; you can’t claim extra coffee runs on top of it. For most drivers, this method captures the maximum allowed without hassle. However, if you have unusually high meal costs (maybe you run in the far north or in very expensive cities frequently), evaluate the detailed method occasionally – it might yield more, but then you must keep all receipts and be prepared for CRA to question if a $50 steak dinner was “reasonable.” Often, consistency is best: pick a method and use it throughout the year. Pro tip: Even with per diem, keep evidence of being away (fuel receipts in other cities, hotel receipts, etc.) to corroborate your travel.

✓ Keep All Supporting Receipts for Fuel, Repairs, and Lodging: This sounds obvious, but we must emphasize it – keep every receipt and invoice related to your truck. Fuel receipts should be the detailed ones showing liters, price per liter, location, date, and taxes (GST/HST/QST). For repairs, make sure the invoice describes what was done (parts/labor) and ideally the truck or VIN. Lodging (hotel) receipts need to show the name of the establishment, the date, and amount – if you pay cash for a shower or parking at a truck stop, ask for a receipt (most will give a small slip). This also includes less thought-of items: permits, scale tickets, tolls, emergency on-road purchases (like a hose or oil at a gas station). Each little expense adds up, and collectively they can be significant. Beyond keeping them, organize them – many successful operations use monthly envelopes or files. Some scan and categorize by type (fuel vs maintenance vs other). The goal is that if an audit letter comes, you can retrieve the support for any number on your tax return within minutes. Auditors have little patience for “I have it somewhere in a box”. A pro tip on fuel: if you use a fuel card, the monthly statement plus the individual receipts together make a bulletproof record. Also, record odometer readings on each fuel receipt – it helps show that fuel went into the truck (and matches your mileage). This level of detail can prevent CRA from trying to disallow fuel as “personal” or “excessive”. Remember, under the Excise Tax Act you’re required to keep books and records for at least 6 years after the tax year, so have a long-term storage solution (physical or digital).

✓ Implement an Audit Trail for Mileage and Fuel (IFTA Best Practices): We strongly advise having a system that links miles traveled to fuel consumed. This is not just for IFTA; it also helps ensure your expense claims make sense. One best practice is to calculate your truck’s fuel economy (e.g., 7 miles per gallon or 40 L/100km) each quarter. Then check: does the fuel you claimed roughly match the distance in your logs given that MPG? If you claimed 50,000 km and $40,000 in fuel, does that equate to a reasonable L/100km? If there’s a big mismatch, find out why (perhaps there were idling losses, or maybe you lost some receipts, etc.). IFTA requires you to keep detailed distance records – many truckers use GPS or ELD reports now instead of manual trip sheets. Best practice: never estimate or guess mileage on your IFTA return. That can trigger an audit which, if you fail, can mean fines or even loss of your license. Instead, record every trip’s distance by jurisdiction either using tech or with disciplined manual logs. For fuel, make sure every gallon/liter purchased is recorded in your IFTA worksheets. Also, reconcile your fuel purchases in CAD for accounting vs. in gallons for IFTA – they should correlate. Many fleets have an internal audit each quarter: they’ll sample a trip and follow it from dispatch -> logbook -> IFTA report -> fuel receipt -> invoice -> accounting entry to ensure everything lines up. While that level of diligence might be hard for a single owner-operator, the concept is the same. Keep things consistent and cross-checked.

✓ Use Capital Cost Allowance (CCA) Strategically: Depreciation (CCA in tax terms) on your truck, trailer, and other equipment is a big tax shield. Best practice is to plan your asset purchases with tax in mind. For example, Canada has offered accelerated depreciation on certain classes of equipment (including trucks and zero-emission vehicles) in recent years. If you buy a new tractor that qualifies, you might write off a huge portion of it in the first year. Coordinate such big moves with your tax advisor to avoid under or over-claiming. Another practice is to time the sale of old equipment carefully. If you sell a truck and will have a taxable capital gain (or recaptured depreciation), maybe do it in a year where you have other offsets (like a new purchase or a lower income year). Also, keep an inventory of all your asset purchases – even smaller ones like a $2,000 trailer upgrade or a laptop for the business – and apply CCA each year. Don’t neglect to claim depreciation out of laziness, because you’d be leaving money on the table (unless you’re intentionally not claiming to save deductions for future years, which is a strategy if you think your income will rise). Essentially, treat your equipment roster like a portfolio that you manage for optimal tax outcomes. We often prepare a multi-year projection for clients showing how CCA will play out if they add X truck or sell Y trailer, which helps them budget and decide. Doing this turns what could be a surprise tax bill into a planned part of business growth.

✓ Optimize Your Salary/Dividend Mix (for Incorporated Owners): If you’re running an incorporated trucking business, one of the best practices is to annually review how you pay yourself – salary vs dividends vs a mix. Why is this in an accounting best practices list? Because it can significantly affect both your personal taxes and the corporation’s situation. Paying a modest salary up to the CPP max (around $66,000 in 2025) gives you RRSP room and contributes to CPP (which is a form of retirement saving), while taking the rest as dividends can often minimize overall tax. A case study: say your company made good profit and you, as the owner, want $100k out. Maybe you pay yourself a salary of $60k and take $40k as dividends. This way, you get a T4 and keep CRA happy on reasonable payroll (possibly justifying that per diem allowance we mention below), and the dividends (eligible or non-eligible depending on the situation) might be taxed at a lower rate personally. Each year’s situation can differ, especially with changing tax rates. Best practice is to sit down at year-end (or better, before year-end) with your CPA to “shareholder remuneration planning”. Consider also if you have a spouse: could they be paid a salary for administrative work or be a shareholder receiving dividends (mind the Tax on Split Income rules, but many owner-operator spouses genuinely contribute, managing books or logistics)? Splitting income within what’s allowed can save a lot. Another angle: as an owner-operator, you might choose to pay yourself a per diem allowance from the corporation instead of claiming meal expenses personally. Done correctly, a reasonable travel allowance is tax-free to you and deductible to the corporation, which is a double win. For example, your company could adopt a policy to pay you $60 per day on long hauls. Over 250 days, that’s $15,000 you receive tax-free, and the company writes it off. It effectively allows you to draw money without payroll taxes (no income tax or CPP on it) while still respecting CRA’s reasonable rates. Just ensure to document it like an expense report, and that it’s only for days you’re away (not every day of the year). Many savvy incorporated truckers use this tactic and thereby reduce the need for high salary – which saves on personal tax and CPP contributions. Of course, don’t zero out your salary too much – you might want enough to maximize RRSP or to show income for loan purposes. It’s a balancing act, hence a yearly planning session is key.

✓ Plan for Retirement and Succession: It might seem far off, but trucking is physically demanding and has a relatively earlier retirement age than some careers. From a financial standpoint, think about your end game. Best practice is to use RRSPs and TFSAs if you have the contribution room (particularly if you paid yourself salary which generates RRSP room). These are protected from creditors in many cases and give you a nest egg beyond the business. Also, consider the Quebec Pension Plan (QPP/CPP) – as an incorporated driver, if you opt to pay yourself only dividends, you won’t contribute to CPP. Some do this to save money, but remember it also means no CPP income later. Some owners thus choose to pay themselves at least the Year’s Maximum Pensionable Earnings in salary to maximize CPP credits, treating CPP as part of their retirement plan. Another item: succession planning. If you plan to eventually sell your truck or company, keep your financial statements clean and formal. The best practice is to have at least a Notice-to-Reader (compiled) financial statement each year, or even reviewed statements if your operation is sizable. This builds credibility for potential buyers or for financing if you want to expand. If you might pass the business to your children, look into setting up a holding company or family trust in advance, which can help with a tax-free rollover of shares or multiplying the lifetime capital gains exemption when you sell shares (currently over $971k of business value can be sold tax-free if conditions are met). These are advanced moves, but mentioning them to your CPA a good 5-10 years before you retire is wise, so you can structure things optimally.

✓ Engage Professional Help When Needed: Lastly, a top best practice is knowing when to get help. The trucking industry is tough; you’re already doing dispatch, driving, maintenance, customer service – wearing many hats. A good CPA or bookkeeping service can take the load of tax compliance off your shoulders. They’ll ensure you don’t miss deadlines, maximize all deductions, and stay updated on new tax rules (for example, any new credits or grants for going green, which are emerging). Consider at least having an accountant do a year-end review of your books and prepare your tax returns, even if you handle monthly stuff. They might catch errors or opportunities you missed. Also, when facing an audit, never go it alone – involve your CPA or a tax lawyer early. CRA auditors are trained professionals; having your own professional to interface with them can make the audit smoother and protect you from saying or providing the wrong thing. Think of it like having a lawyer in a legal fight – an accountant in a tax matter is your representative and shield. In Quebec, where tax can be complex with dual systems, this is even more important. Many Montreal CPA firms (like us) specialize in helping PMEs navigate RQ vs CRA differences. It might cost some fees, but the savings in tax or penalties – and peace of mind – often far exceed that.

Implementing these best practices may sound like a lot, but you don’t have to do it all overnight. Gradually incorporate them into your operations. Each one you adopt is like adding another layer of armor to your business – protecting you from audits, saving money, and freeing up your time. In the end, an organized, proactive trucking business is a more profitable and sustainable one. Your routes may be long and unpredictable, but your accounting doesn’t have to be!

Common Errors in Trucking Accounting (and How to Avoid Them)

Even with the best intentions, trucking entrepreneurs often fall into similar traps when managing their books and taxes. Let’s shine a light on those common errors so you can steer clear. If you find yourself saying, “I’ve done that,” don’t worry – recognizing the mistake is the first step to fixing it. Here are the frequent missteps in trucking and logistics accounting:

Error 1: Failing to Track Personal Use of the Truck or Pickup: This one is pervasive. You have a heavy truck for business – you figure it’s 100% business, right? But maybe occasionally you drive it home unloaded, or use your pickup truck (if you have one in the business) for weekend family trips. Many owner-operators write off 100% of vehicle expenses without considering personal use. The error is twofold: if it’s a heavy truck (tractor-trailer), CRA generally expects it’s mostly business, but even then, technically personal kms (home-to-terminal, or bobtailing to run errands) are non-deductible. For a pickup or smaller truck that doubles as personal wheels, the expectation is you prorate expenses based on mileage. Ignoring this can lead to an auditor arbitrarily assessing, say, 20% of your truck expenses as personal (we’ve seen it happen). Solution: Maintain a log of personal vs business kilometers for any vehicle that has mixed use. For a semi, this might just mean noting the odometer at year-end and explaining any periods it wasn’t used for work. For a pickup, perhaps keep a log for a sample period to establish a pattern (e.g., 80% business, 20% personal) and then apply that percentage to expenses. It’s not fun, but it’s better than CRA guessing and potentially denying a chunk of your fuel, insurance, and depreciation claims. Also, if your corporation owns the vehicle and you use it personally, remember there could be a taxable standby charge or benefit unless personal use is minimal – talk to your accountant about structuring this (sometimes it’s better for you personally to own a commuter vehicle and charge the company when used for work, rather than vice versa).

Error 2: Overstating Mileage or Forgetting “Off-duty” Days: In pursuit of maximizing per diems or vehicle expense claims, some truckers inadvertently (or deliberately) overstate their work days or mileage. For example, claiming meal allowances for 365 days a year (impossible, since even the hardest road warrior has some home time), or inflating mileage on IFTA reports to reduce fuel tax owed (which can backfire if fuel purchases don’t support it). Conversely, some forget to exclude purely off-duty personal travel from their logs when calculating business use. Solution: Stay honest and accurate. It’s far better to claim a bit less but be bulletproof in an audit, than to claim more and get caught and penalized. Use electronic tools to calculate mileage – they’re less prone to “fudging” than manual logs. With per diems, only claim the days you were truly away beyond the 24h threshold. If you had a two-week vacation off the road, do not claim meals for that period (sounds obvious, but when doing taxes the days can blur together if not careful). Auditors are adept at comparing your fuel purchases or dispatch records to claimed mileage; any glaring inconsistency is an error that could lead to deeper investigation. Essentially, don’t let tax-minimization eagerness lead you into recording errors. Keep it factual – if the numbers seem low, look for legitimate ways to improve (maybe you missed some expenses) rather than fabricating.

Error 3: Misplacing or Not Requesting Receipts: We mentioned keeping all receipts as a best practice; the flip side is the error of not having receipts at all. Some truckers either lose them, or don’t bother to get one for small expenses. Common culprits: parking fees, scale tickets, coffee and snacks (if you try to claim them outside per diem), ATM fees when withdrawing cash on the road, or paying lump-sum to a mechanic friend without an invoice. CRA can disallow any expense without a proper receipt – even if it’s obvious you incurred it. We’ve seen drivers lose thousands in deductions because they couldn’t produce a $15 receipt for each shower on a long trip (50 showers at $15 is $750 – 80% deductible, that’s $600 expense, maybe $180 tax saved – not negligible!). Solution: Develop the habit: “No receipt, no pay.” If someone wants cash (e.g., a roadside repair), insist on a handwritten invoice or at least a signed note on paper detailing the amount, date, and service. Use a phone app to snap photos of parking meter payments or toll transponder records. Many toll highways (407 in Ontario, for example) issue statements online – make sure to download those. If a receipt is illegible (thermal paper can fade or be smudged), note the details on it while fresh or get a duplicate. It’s tedious, yes, but far less painful than losing the deduction later. If worst comes to worst and you don’t have a receipt, you might still claim the expense, but be aware it’s vulnerable – at least keep some secondary evidence (like a log note “paid $10 cash for parking at customer site – no receipt given” with date/time). It’s up to auditor discretion then, but better than nothing.

Error 4: Mixing Up USD and CAD, or GST Included vs. Not: Many Canadian truckers earn revenue in USD or incur lots of USD expenses, but a common accounting mistake is failing to convert to Canadian dollars properly. For instance, you might record that $500 repair in North Dakota as “500” in your books, but that’s USD – in CAD it might be $675. This can throw off your accounting and lead to under-claiming expenses (bad for you) or over-claiming (which CRA won’t like either). Similarly, some make errors with GST/QST on receipts. For example, a truck part bought in Alberta has 5% GST (which you can claim) but no QST, whereas in Ontario it has 13% HST (which you claim federally, none provincially). If you’re not careful, you might mistakenly claim provincial QST on an Ontario purchase (not allowed, since HST covers it), or forget to claim GST on a US import if you paid it at the border (e.g., on tires imported). Solution: When recording transactions, always note the currency and tax. A good practice is to enter all amounts in CAD – use the exchange rate from your credit card statement or Bank of Canada average for that date. Some accounting software can handle multi-currency – use that feature so it auto-converts. For taxes, learn to read receipts: if it’s HST, there won’t be separate GST/QST lines. If it’s GST only (out of province purchase), no QST to claim. If it’s QST only (rare, maybe if you buy used goods from a small supplier who only charges QST?), handle accordingly. And remember, US purchases generally have no GST at point of sale, but if goods are brought into Canada (like truck parts or a truck itself), you likely paid GST at customs – don’t forget to claim that using the import documentation. This is detail-oriented work, and many errors happen when owners do their own bookkeeping without fully understanding sales tax intricacies. If in doubt, a one-time consult with a CPA can set you straight on how to handle these. A little training or even a custom chart from your accountant (“GST vs HST vs QST handling for my expenses”) can save a ton of confusion.

Error 5: Treating Drivers as Contractors Without Proper Structure: If you have other drivers running under your authority (say you expanded to a small fleet and hired a couple of drivers), you might be tempted to call them “owner-operators” and give them a Form 1099 (if US) or T4A for Canada, avoiding payroll. Misclassifying employees as independent contractors is a major error in many industries, trucking included. We discussed Driver Inc. from the driver’s perspective; from the fleet owner’s perspective, if you engage drivers and don’t deduct payroll taxes when you should, you could face a payroll audit. CRA and RQ will apply a similar test of control and ownership: if the driver doesn’t own the truck, can’t subcontract, basically works full-time for you, they’re likely your employee. The error is failing to set this up properly – either you should put them on payroll, or ensure they have their own corporation/authority and you have a clear contract that passes the tests (which still may not save you). Solution: When expanding, consult on worker classification. Sometimes the easiest answer is to pay them as employees with a bonus structure to mimic the contractor pay. Yes, you’ll have to pay CPP/QPP and perhaps offer benefits or WCB, but you avoid potential fines and back taxes. If you do the contractor route, insist they incorporate (if allowed) and perhaps even get their own WSIB/CSST coverage and GST registration – this helps evidence their independent business. Regardless, have a written contract. And run the numbers: if CRA reclassifies your $50,000/year contractor as an employee after two years, you could owe roughly $5k CPP, $1k EI, plus potentially tax if they didn’t pay (which they probably did, but still) plus penalties for not filing T4s, etc. It adds up. So avoid that by doing it right from the start.

Error 6: Ignoring Provincial Differences (Quebec vs. Federal): Quebec has its own tax agency and its own forms (like TP-66 for meals, MRQ audits for QST). A common error for Quebec-based truckers is to focus only on CRA rules and neglect RQ nuances. For example, you might diligently follow CRA’s TL2 process for meals but forget that you should also complete a TP-66 for the Quebec return – if not, RQ might disallow the deduction on the provincial side. Or you might register for GST but forget to register for QST when required (since the threshold is the same $30k, usually simultaneous, but some miss it). Another one: claiming input tax credits on QST in the federal return by mistake – QST credits have to be claimed in the provincial return. Solution: Treat Quebec as an equal player. File all the parallel forms (or use professional software that generates both federal and Quebec forms). Keep an eye on Revenu Québec’s communications; they sometimes have special interpretations or audit focuses. For instance, RQ has been aggressive on verifying that transport businesses applying the meal allowance meet the criteria, often matching TL2 info to what employers state. Also note differences like Quebec’s fuel tax programs or credits – there have been rebates for off-road diesel or for fuel-efficient equipment that are provincial. Work with professionals familiar with Quebec rules. Montreal-based firms (like Mackisen!) are used to this dual system and can ensure you’re not compliant in one jurisdiction but offside in the other.

Error 7: Not Keeping Up with Industry-Specific Tax Changes: Tax rules aren’t static. For example, the allowable meal rate has increased periodically (e.g., going from $17 to $23 per meal over time) and the deductible portion for long-haul went from 75% to 80%. If you weren’t paying attention, you might still be using old rates, under-claiming and losing out. Or consider carbon tax rebates or new credits for anti-idling technology – if you buy an auxiliary power unit (APU) for your truck, there might be a rebate program or a write-off incentive that an unaware trucker could miss. Solution: Stay informed. Subscribe to industry news (publications like Today’s Trucking or Truck News often highlight budget changes affecting drivers). CRA’s website has a page for “Transportation Employees” – check it annually to see if anything changed (meal rates, etc.). Also, consult your accountant each year about “what’s new.” For instance, if the government announces a new investment tax credit for zero-emission trucks or a grant for training new drivers, find out if you can benefit. The error is thinking tax rules that applied when you started your business 10 years ago are the same today. They might not be, and both missing opportunities or failing to comply with new obligations (like the ELD mandate which, while safety-related, has tax impacts in recordkeeping) can hurt you.

Error 8: Poor Communication with Your Accountant/Bookkeeper: Lastly, an error we see is that clients don’t communicate key info to their financial helpers. For example, not telling your accountant that you changed trucks (bought a new one, sold the old) so the asset schedule is wrong. Or not explaining that you started hauling into a new state (which might trigger some state tax or at least needs to be included in IFTA). Some owner-operators also fail to share that they incorporated mid-year or changed their corporate structure – and they might continue to use the wrong method for expenses (we’ve seen folks still deducting meals personally when they had the company pay them an allowance, effectively double-dipping accidentally). Solution: Keep your accountant in the loop. A quick email or call when a significant business change happens can save a ton of cleanup later. Treat them as part of your team; if you’re getting a loan and need financials, give them a heads up. If you take on a partner or investor, definitely involve them. It’s easier to adjust bookkeeping practices in real-time than retroactively fix a year’s worth of entries. Remember, you’re paying for their advice, so use it. No one likes surprises on April 30th.

To sum up, these common errors are all avoidable with a bit of care and systems. The cost of mistakes in trucking accounting can be high – either in lost deductions or penalties. But by learning from others’ mistakes (and maybe your own past ones), you can tighten up your ship. As the saying goes, “An ounce of prevention is worth a pound of cure.” Nowhere is that truer than in taxes. So, audit-proof your habits, double-check your work (or have someone do it), and keep your business between the lines. If you do veer off, correct it fast – the longer an error goes unaddressed, the harder it is to fix.

Salary vs. Dividends: Paying Yourself in a Tax-Efficient Way

For incorporated trucking entrepreneurs, one perennial question is how to pay yourself from your company’s profits. The choice usually boils down to salary (or wages/bonus) versus dividends (draws from after-tax profits). Each has pros and cons, and the optimal answer can depend on your personal situation, income level, and goals. Let’s break down the considerations for truck company owners in Quebec and Canada:

Salary (or Wages): When you pay yourself a salary from your corporation, you’re treating yourself like an employee of your company. That salary is deductible to the corporation (reducing corporate profit and corporate tax), and it’s taxable to you personally as employment income. You’ll have to remit source deductions (income tax, CPP/QPP, EI if applicable – though as an owner you might be EI-exempt). Why choose salary?

• RRSP Room and Benefits: Salary generates RRSP contribution room, at 18% of earned income. If you want to invest in RRSPs for retirement or income splitting later, you need salary (dividends don’t create RRSP room). Also, as a salaried person, you contribute to CPP/QPP, building entitlement to a pension at 65. Some see CPP as a reasonably good, inflation-indexed investment; others see it as a tax – but it’s something to consider. Additionally, in Quebec, having T4 income can entitle you to certain worker credits or help with loans (banks like to see steady income).

• Consistency and Simplicity: A set salary (say you pay yourself $1,000 weekly) is predictable and makes it easy to automate personal finances. It’s also straightforward for accounting – the company withholds and remits taxes, and at year-end you get a T4. The corporate tax is lower because you deducted the salary, so ideally the corporation might end up with little taxable income if you withdrew most profits as salary.

• Per Diem Allowances: As mentioned earlier, one nuance for trucking is that if you want to use the TL2 meal claim (the long-haul meal deduction), you typically have to be an employee receiving a T4. Owner-operators who are incorporated often pay themselves a modest salary and have the corporation issue a T2200 (Declaration of Conditions of Employment) so they can personally claim meals and lodging on TL2. Alternatively, the corporation can pay you a non-taxable meal allowance (which is effectively a salary substitute for meals). But either way, it’s under the rubric of you being an employee. Sole shareholders paying only dividends technically aren’t employees, and CRA could challenge a TL2 in that case. So salary solidifies your ability to use those additional deductions or allowances properly.

• Reducing Corporate Tax to Access Small Business Deduction Fully: In Canada, the first $500k of active business income is taxed at a low rate (~12.2% in Quebec combined federal/provincial in 2025 for CCPCs). If your company makes well above that, taking salary out (which reduces income) can help keep the corp income in that bracket. However, in trucking, most small companies don’t exceed $500k profit unless it’s a bigger fleet. So this is more a point for very profitable operations – they might bonus down profits to $500k to maximize the small business rate and avoid the higher general corporate tax.

On the flip side, salary has some downsides: you have to pay CPP/QPP contributions (in 2025, that’s about 11.5% combined on earnings up to ~$66k; the company and you each pay half). That’s thousands of dollars which, while it goes toward your pension, is a cash cost now. Also, salary means personal tax upfront – you’ll pay income tax on that salary in the current year (though if your income isn’t high, it might be reasonable due to graduated rates). Administration is another: you need to run payroll, file T4s, etc., which is a bit of work.

Dividends: Dividends are payments to you as a shareholder from the company’s after-tax profits. The corporation will first pay its small business tax (~12.2% on the first half-million of profit in QC). When you take a dividend, you get a T5 slip, and you’ll pay personal tax on it, but with a credit for the corporate tax already paid (the dividend tax credit). Why choose dividends?

• Lower Personal Tax Rate (in some cases): Eligible dividends (from profits taxed at the general rate, not small biz rate) and non-eligible dividends (from small biz income) receive preferential tax treatment for individuals. For moderate incomes, dividends can be very tax-efficient. For example, a non-eligible dividend of say $40k might incur less personal tax than a $40k salary because the dividend is “grossed-up” and taxed, then a credit is given. Especially if you have no other income, you can actually receive some dividends tax-free or at very low tax rates (the exact amount varies by province; in QC, a bit of taxes kick in sooner than some provinces due to the way credits work, but it’s still advantageous).

• No CPP Contributions: Dividends are not subject to CPP/QPP or EI. This means if you take $50k as a dividend vs salary, neither you nor the company pays CPP on it, saving ~11% or about $5,500 that would have gone into CPP. You don’t get the CPP credits, but you might value the cash more to invest on your own or to cover current needs.

• Flexibility and Simplicity: Declaring a dividend is simpler administratively – no monthly remittances, no payroll slips (except the T5 at year-end). You can wait until year-end, see how much profit the company has, and then declare a dividend to flush it out or to give yourself what you need. You can also better manage your personal tax bracket: for instance, maybe you keep your dividends such that your total personal income stays in the lower tax bracket. With salary, once it’s paid, it’s fixed, but dividends can be adjusted with more real-time knowledge of the year’s results.

• Income Splitting (Spouse/Family): If your spouse or adult children are shareholders (and not caught by TOSI rules), paying dividends to them can split income. The Tax on Split Income (TOSI) rules introduced in 2018 make it tricky, but not impossible. If family members are meaningfully involved in the business (say your spouse does dispatch or admin), or if you’re 65+, you can usually split dividends with a spouse with no issue. Also, if a family member contributed capital or took risk in the business, dividends to them might be allowed. Dividends allow such splitting without having to put them on payroll. Many small corporations have both spouses as shareholders and can pay each up to the lower bracket, resulting in significant tax savings as a family. (Always get professional advice here – mis-applying TOSI can lead to dividends being taxed at top rates as punitive measure).

• Retained Earnings Growth and Deferral: One strategy is to leave some profit in the company (paying the low corporate tax) and not take it out personally. This defers personal tax and allows the company to reinvest or save for a new truck, etc. If you only need, say, $50k to live, and the company made $100k, you could leave $50k inside, pay 12% on it ($6k) and no personal tax until you eventually take it. That $50k can be used to put a down payment on another truck or as a rainy-day fund. Salary can’t really do that – if the company paid you the $50k, you’d be taxed personally on it that year. Dividends (or simply not paying out) enable deferral. Eventually, when you do take it out, you’ll pay the personal tax, but maybe by then you’re in a lower bracket (say you retire and sell trucks, then take dividends in retirement when you have little other income). Or if you never need it personally, you might even pass the company (with its retained earnings) to your heirs or use it for other investments.

The downsides of dividends: They don’t build RRSP room or contribute to CPP. If you rely on CPP in retirement, not paying in could reduce that income (though you can compensate by investing the saved CPP money). Also, if you want to show higher employment income for certain loans or for the CERB/CRB kind of benefits (in 2020 some programs looked at employment income), dividends sometimes don’t count. Another consideration: in Quebec, dividends are taxed a bit higher relative to other provinces because Quebec’s dividend tax credit is structured differently. So some Quebec small business owners lean slightly more towards salary than their counterparts in say Ontario, but it’s still case-by-case.

A Hybrid Approach (Often Best): In practice, many trucking business owners do a mix: a baseline salary to cover personal needs, maximize CPP/RRSP if desired, and allow meal/travel expense claims, and then dividends for anything beyond that. For example, you might take a salary of $60,000 (ensuring max CPP contribution and some RRSP room) and then if the company has extra profit, declare a dividend of, say, $20,000 at year-end. This way, you cover both bases. Our earlier trucknews example actually advocated incorporating and paying a low salary plus a per diem allowance; effectively the per diem was like a replacement for part of the salary, delivered tax-free.

Using such strategies, an incorporated owner-operator can significantly reduce taxes. One must be mindful though: documentation and reasonableness. If you pay yourself a very low salary but have a fancy lifestyle funded by the company, CRA might scrutinize for shareholder benefits (taking company money without declaring it). Always formally declare dividends when you take money out if it’s not salary. Keep board minutes or a simple signed resolution for dividends – or at least a memo. It shows intent and proper corporate process.

Quebec-Specific Twist – Salary vs. Dividends: Quebec personal tax rates are high, but Quebec also gives some special deductions (like the small business deduction for certain business income earned by individuals – not likely applicable here). A notable twist: Quebec has labor standards and CSST (workers’ comp) – as an owner you might exempt yourself, but if you take salary you may be subject to some labor-related charges (though usually owners can opt out of CNESST). Dividends wouldn’t count in those. Minor point, but sometimes considered.

Numbers Illustration: Suppose your trucking company makes $100,000 before paying you. Here’s a rough idea:

• If you pay yourself $100,000 salary, the company profit becomes $0 (so no corporate tax). You personally pay, say, ~$26k federal+QC tax (2025 rates) on that salary (assuming basic credits), and about $5k in CPP contributions (split between you and company). You end up with around $69k net. You have RRSP room of $18k for next year. The company has no retained profit (but it did pay CPP employer of ~$2.5k and maybe EI if not opted out).

• If you instead take no salary, the company pays small biz tax ~12.2% on $100k = $12,200. Leaves $87,800 after tax in company. If you then take all of that as a non-eligible dividend, you personally pay perhaps around $18k tax on it (just an estimate; actual depends on bracket and credits). You net maybe $69k as well after all taxes. Interestingly, both paths gave similar net cash in this simple scenario (because tax integration is designed to equalize roughly). But in the dividend route, you also left some tax paid at corporate level. If you didn’t need the full $100k, you could take less and defer tax on remainder. With salary, taking less just leaves profit to be taxed in company anyway but at 12%. Often the difference is in the fringes: CPP paid vs RRSP gained, etc.

One more scenario: pay part salary, part dividend. Pay $50k salary -> personal tax maybe $11k and CPP $~3k, net $36k. Company now has $50k profit left -> corp tax $6,100, left $43,900. Pay that as dividend -> personal tax maybe $9k. Net from dividend ~$34,900. Total net to you ~$70,900. Combined tax+CPP ~$29,100 (which matches roughly the earlier totals). But now you have RRSP room $9k and some CPP credits.

As you can see, tax integration works – you won’t usually dramatically change the net spend by CRA/RQ, but you can tweak it to your advantage. If you highly value RRSP/CPP, lean salary. If you want immediate cash flexibility or to reinvest in business, lean dividends and corporate retention.

Also consider provincial health contributions or other fees – e.g., Quebec has a health services fund (but that’s on payroll of employees – owner salary might be exempt if only employee? For very small payroll, HQ has a low rate or exemption). Dividends avoid that anyway.

In summary, for most small incorporated truckers, an optimal strategy might be:

• Pay yourself enough salary to use per diem allowances (if you prefer that route) and maybe contribute to CPP for future or RRSP. Often this might be around the $50-60k mark.

• Take additional profits as dividends especially if it would otherwise push you into a higher personal tax bracket.

• If your spouse helps in the business, consider a reasonable salary for them or make them a shareholder for dividends (ensuring compliance with tax rules).

• Revisit yearly as profits change or personal needs change (e.g., if one year you plan to buy a house, you might want a higher T4 income to show the bank, so you adjust accordingly).

• Keep a cushion in the company for emergencies – don’t automatically drain every dollar; that cushion gets taxed low inside and can be a lifesaver if you have a bad year or major repair.

One last note: If your company ever might be sold, having some retained earnings can be okay (buyers often effectively pay you for that equity anyway in purchase price), but too much passive income could jeopardize the small business deduction eligibility (federal rules reduce the small biz limit if passive income > $50k). Typically, a one-truck operation doesn’t generate much passive income (interest, etc.), but if you accumulate a lot and invest it, watch for that rule.

In conclusion, salary vs dividends is not one-size-fits-all. It’s a planning decision that should be revisited regularly. The good news is, with proactive planning, you can legitimately minimize taxes and maximize the money you keep. And if doing this analysis makes your head spin (understandable!), that’s where a CPA’s guidance pays off – we crunch the numbers and present the options so you can make an informed decision that suits your financial goals.

Holding Company Strategies for Trucking Businesses

Many savvy business owners in the trucking industry use holding companies (holdcos) as part of their corporate structure. At first blush, incorporating one company is complicated enough – so why would someone have two (a holding and an operating company)? There are several strategic reasons, from asset protection to tax optimization. Let’s explore how a holding company setup can benefit a trucking business, and the considerations to keep in mind:

What’s a Holding Company? It’s basically a corporation that owns assets or shares of other companies but doesn’t actively operate a business itself (or operates very little). In a typical trucking scenario, you might have Operating Co (OpCo) which runs the trucks, enters contracts, generates revenue and expenses. Then you have Holding Co (HoldCo) which could own the shares of OpCo, and possibly own certain assets (like the trucks or real estate) and lease them to OpCo.

Benefits of a Holding Company:

• Asset Protection and Liability Isolation: Trucking is a business with substantial risk – accidents, cargo claims, lawsuits can happen. If your operating company is ever sued or faces creditors (say a huge claim beyond insurance, or it goes bankrupt due to a downturn), assets held in a separate holding company are generally safe from those OpCo creditors. A common strategy is to have HoldCo own valuable assets (e.g., the trucks, trailers, depot/garage property) and lease them to OpCo for its operations. OpCo then might own very little itself (maybe just some working capital). In case of a liability, the OpCo can be the “sacrificial” entity – it might go under, but the assets remain with HoldCo, which can then potentially start a new OpCo and continue business. For example, if a catastrophic accident leads to a lawsuit exceeding insurance, the operating company could be on the hook, but if it doesn’t own the trucks or property (those are in HoldCo), creditors can’t seize those from HoldCo (assuming everything was structured and run properly respecting corporate separateness). Important: this isn’t about evading legitimate claims (you should always have ample insurance), but about not keeping all your eggs in one basket.

• Tax-Free Flow of Dividends (Corporate “Pipeline”): In Canada, dividends between connected Canadian corporations are generally tax-free thanks to something called the “part IV tax” system (essentially, the holdco gets a refund for any tax on inter-corporate dividends). What this means is that OpCo can pay its after-tax profits up to HoldCo without triggering personal tax. So, imagine OpCo made $200k profit. It pays 12% small biz tax ($24k) and has $176k after tax. If you don’t need all that personally, you can dividend, say, $150k up to the HoldCo (no tax on that movement). Now HoldCo has $150k cash that’s already taxed at the low rate, sitting pretty. You personally still only get what you need (maybe you take some out of HoldCo now or later). This achieves a further deferral: normally, if OpCo paid you that $150k, you’d pay personal tax immediately. By moving it to HoldCo, you lock in the small business tax rate and postpone personal tax indefinitely until you choose to withdraw from HoldCo. Meanwhile, HoldCo can use that money to invest – maybe buy stocks, or better, reinvest in the business (like buying another truck which it then leases to OpCo). This is a key tax strategy: retain & invest profits in a holdco to grow your wealth with only ~12% initial tax rather than 50% if you took it personally. Over years, this can make a huge difference (compounding more pre-tax dollars). Do watch for the passive income rule: if HoldCo generates a lot of investment income, it can grind down OpCo’s small biz deduction limit, but that’s a problem at higher levels ($50k+ investment income).

• Estate Planning and Continuity: If you plan to pass the business to your children or sell it eventually, a holdco can help. For example, you might have your HoldCo owned by you and your spouse (or a family trust) so that OpCo’s growth accrues there, and you can do estate freezes, etc., more flexibly. Also, if you have multiple OpCos (say you expand into a related business, or separate divisions like one OpCo for trucking, one for warehousing), a HoldCo can own them all, consolidating your empire. It’s easier to manage cash among them via the holdco. If one OpCo is flush with cash, it can dividend up to HoldCo which can then loan or invest in another OpCo that needs funds – internally, tax-free, rather than paying out to you then reinvesting.

• Flexibility in Sale or Transfer: Suppose one day you want to sell the trucking business. If HoldCo owns OpCo shares, you could potentially sell the shares of OpCo to a buyer and the proceeds go into HoldCo (and possibly you can use your lifetime capital gains exemption on the sale of OpCo shares, assuming it qualified as a small business corporation). You could then keep the after-tax proceeds in HoldCo rather than personally. Why? Maybe to reinvest in another business or investment, again deferring personal tax or multiplying CGE if structured among family. Alternatively, if you have a partner, and you each have your own holdco owning shares of the OpCo, then if one of you wants out, that holdco can sell its OpCo shares to the other person’s holdco or an outside buyer, rather than individuals exchanging shares – it’s often cleaner.

• Holding Investments or Real Estate: Often trucking companies buy a yard, garage, or office. It’s common to put real estate in a separate holdco (or a sister company) and have OpCo pay rent. This way, if the operating business falters or is sold, you still have the real estate safe and separate (and you can lease it to someone else). Real estate tends to appreciate and has different tax treatment (it could taint the small biz status of OpCo if too much passive asset), so isolating it is beneficial. Similarly, if you have surplus cash that you invest in stocks/bonds, doing that inside OpCo can cause issues (passive income) – better to upstream that cash to HoldCo and let HoldCo hold the portfolio. Then OpCo remains a pure active business for tax purposes and is less likely to lose small business status.

Example Setup: You are “Joe Trucker Inc.” (OpCo) doing the hauling. You form “Joe Holdings Inc.” (HoldCo). HoldCo subscribes for shares of OpCo (either when starting, or you can do a reorg to have HoldCo buy your shares via a share exchange – typically with a sec.85 rollover). Now OpCo is a subsidiary of HoldCo, and you own HoldCo. You then decide to have HoldCo own the physical truck. Perhaps HoldCo buys the truck and leases it to OpCo for a monthly lease payment. OpCo deducts lease expense; HoldCo reports lease income (which is active business income if structured right, say HoldCo is also providing management services – careful, pure rental might be passive unless you do it in a certain way). Alternatively, maybe the truck stays in OpCo (for simplicity with IFTA, insurance, etc.), and you mainly use HoldCo to accumulate profits via dividends. Either way, each year OpCo might dividend most of its profit to HoldCo after paying the low tax. You then decide how much to take from HoldCo as personal dividends or salary (HoldCo could even employ you and pay salary if desired).

Things to Watch Out:

• Costs and Complexity: Two corporations mean two annual filings, two sets of financial statements, possibly two GST/QST accounts if both are active. This is more admin and professional fees. Usually justified only if tax savings or risk mitigation outweighs that. Many single-truck operators might not need a holdco unless they’re retaining earnings substantially or have risky expansion plans. But as soon as you accumulate significant profits or assets, a holdco makes more sense.

• Loans and Guarantees: Often, banks financing a truck or line of credit might want the holdco to guarantee the opco or vice versa, which can blur the separation a bit (and in worst case, a guarantee means holdco’s assets are at risk because it guaranteed opco’s debt). Try to avoid cross-guarantees that defeat the purpose of separation. Some structure so that holdco is the one borrowing and buying assets then leasing to opco; depends on credit and situation.

• Inter-company transactions must be at fair terms: If holdco leases a truck or property to opco, do it at a reasonable market rate with proper documentation. If it’s too informal, CRA could question the deductibility or deem some benefit. Also, ensure any dividends up to holdco are properly declared (minuted) to be tax-free inter-corporate (must own >10% voting and value to be connected, which in these setups it usually does).

• Personal Services Business trap: If you, as an individual, are providing your driving services through a corporation to one client, and then you have a holdco, it doesn’t escape the PSB classification. In other words, a holdco won’t rescue a Driver Inc situation if the underlying relationship is employer-employee-esque. The presence of holdco is more for businesses that truly have an active business.

• Passive income in HoldCo: As mentioned, if HoldCo just holds investments, and the passive income > $50k/year, OpCo’s small biz deduction limit can be reduced (if they are “associated” which they are). For example, if HoldCo has $100k of interest income, it could cut OpCo’s small business limit down by $25k (for every $1 over $50k, $5 reduction). But passive income that is incidental likely won’t reach that unless a lot of money is accumulated.

• GST/QST on intercompany: If holdco charges management fees or leases to opco, it may need to charge GST/QST unless an election is made if they’re in a closely related group. There is a specific election (RC4616) that, if filed, allows no GST on intercompany services between certain corps (called section 156 election for GST/HST). Quebec likely has an analogous for QST. Many forget this and either don’t charge when they should or vice versa. Consult on that if doing intercompany charges.

• Salary vs Dividends to HoldCo Owners: If you have a holdco, you will likely take dividends from it (since one reason to hold money in holdco is to delay personal tax until needed). Just remember that eventually when you want to enjoy the money personally, you’ll pay the piper. But you can time it in retirement or low-income years. Some even plan to move to a lower-tax province in retirement and then take dividends then. It’s possible (e.g., accumulate in Quebec corp, then later you move to NB or something and pay personal tax at that province’s rate when distributing – though inter-provincial matters can be complex).

In essence, a holding company is like a “vault” where you can stash the treasures (profits, trucks, properties) of your trucking business, safe from the storms that might hit the operating side. It introduces more moving parts, but for many, the peace of mind and tax flexibility are worth it. As a best practice, discuss with a CPA or tax lawyer before setting it up – to ensure the structure is done correctly (rollovers, share classes, etc.), and that it indeed aligns with your goals (there’s no point having one if you always withdraw all profits personally anyway – the benefits materialize when you start leaving significant funds in the corporate sphere or have multiple ventures).

A quick case study: One of our Montreal trucking clients had built up $500k in savings inside his company over years. He was one bad lawsuit away from losing that war chest if an accident had occurred. We helped him set up a holdco, roll the savings and some trucks into it, and now his operating company runs lean. He sleeps better knowing that if the worst happens on the road, his years of profits are not all on the line. Plus, he’s using the holdco funds to invest in some rental properties, diversifying his income – all while deferring a huge chunk of personal tax. That’s the kind of strategic advantage a holdco can offer.

Financing and Grants for Trucking Companies

Trucking is a capital-intensive industry, and accessing financing and taking advantage of grants can be the key to growth (or survival in tough times). In Quebec and across Canada, there are numerous programs and institutions ready to assist transportation businesses – if you know where to look. Let’s drive through the landscape of financing options, government grants, and subsidies relevant to trucking and logistics companies:

1. Traditional Financing – Banks and Equipment Loans: Most trucking businesses start with a loan or lease for their first truck. Major banks (RBC, BMO, etc.) and specialized equipment lenders (like those tied to manufacturers – e.g., Volvo Financial, Daimler Truck Financial) offer truck loans/leases. Typically, they’ll finance a percentage of the truck’s cost (e.g., 80%) and the truck itself is collateral. Interest rates depend on your credit and the asset. It’s crucial to have your financial statements or at least a solid business plan when seeking financing. As a PME (small business) in Montreal, you might tap institutions like Banque Nationale or Desjardins that have local SME programs. Another route is the Canada Small Business Financing Program (CSBFP) – a federal program where banks lend to small businesses and the government guarantees a portion. Trucks and equipment are eligible assets under this program. For example, you could finance up to $350,000 under CSBFP for equipment (recently increased limits may allow more). The benefit is the bank may be more willing to lend knowing the loan is gov’t-guaranteed. It comes with a registration fee and slightly higher rate perhaps, but can enable newer businesses to get credit they otherwise might not.

2. Government Grants and Subsidies (Federal): The push for sustainable and efficient transportation has led to multiple federal grant programs. A big one is Natural Resources Canada’s Green Freight Program. This program provides cost-sharing for projects that reduce fuel consumption and GHG emissions. For instance, it can fund up to 50% of the cost of retrofit technologies (like aerodynamic devices, anti-idling solutions, trailer skirting) and even help purchase alternative fuel or electric trucks with significant grants. It also funds fleet energy assessments. A company could get, say, $20,000 toward installing telematics and driver training for fuel efficiency or $50,000+ for trialing electric trucks. There’s also the federal Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) program, which offers point-of-sale rebates for electric or hydrogen trucks – amounts can range widely ($10k for smaller trucks up to $150k for big electric rigs in some cases). If you’re thinking of greening your fleet, stacking these incentives can drastically cut costs.

Another federal angle is BDC (Business Development Bank of Canada) – while not a grant, BDC provides financing to SMEs often when charter banks won’t. They understand industry challenges and may offer loans for expansion, working capital, even bridge financing during slow periods. They often have higher interest but flexible terms. BDC has also run programs specific to pandemic recovery or oil price crises to help trucking/logistics firms retool.

3. Quebec Provincial Programs: Quebec is known to strongly support sustainable transport. The Programme Écocamionnage (Eco-Trucking Program) is a flagship provincial grant initiative that provides funds for projects improving environmental performance of freight transport. As of 2025, it was refunded with $145 million. Through Écocamionnage, trucking companies can get reimbursed for a portion of costs for things like upgrading to electric trucks, installing aerodynamic improvements, using telematics, or training in eco-driving. The program might cover, for example, 30-50% of the cost of aerodynamic retrofits or anti-idling equipment, and larger amounts for adopting electric or LNG/CNG truckshellodarwin.com. It often has various streams for SMEs vs larger firms. Given Montreal’s emphasis on reducing emissions, taking advantage of this not only saves money but positions your company as a green leader, possibly attracting clients who have sustainability mandates.

Quebec also has Innovation and Productivity grants (sometimes under programs like PME en action, etc.) which might help if you implement new tech (say an AI-based route optimization software). There are regional economic development funds if you operate in certain regions or corridors, and sometimes wage subsidies for hiring drivers or apprentices to combat the labor shortage (Quebec has had programs to pay a portion of salary for young or new drivers during training). For instance, an “Employment Pathway” type grant was mentioned in Alberta; Quebec may have analogous initiatives through Emploi-Québec.

Don't forget Revenu Québec tax credits: while not direct grants, there’s a refundable tax credit for on-the-job training periods (if you train students, etc.), and historically, credits for purchasing or leasing new clean energy vehicles. Check if the province currently offers a QST rebate on electric heavy vehicles (it has for cars, not sure for trucks yet, but possibly through Transition Énergétique Québec or other agencies).

4. Montreal and Local Support: For Montreal-based businesses, the city’s PME MTL network offers both grants and loans to startups and growing businesses. They have various funds; one example: PME MTL Grant for new businesses (which could give a $5k-$15k non-repayable contribution for startup costs if you meet criteria). They also offer loan funds, and specialized programs for youth entrepreneurs, immigrants, etc. If you’re a smaller trucking or delivery company, such community-based funding can give you a leg up. There are also sometimes Green innovation competitions or awards that a trucking company with a novel approach could win funding from (e.g., Montreal had a Sustainable Mobility grant challenge at times).

5. Industry and Private Grants: Some industry associations provide financial support for training or safety improvements. For example, there might be a Quebec Trucking Association (ACQ) program or scholarship that reimburses part of driver training costs if you hire new drivers. Also, large shippers or manufacturers sometimes partner on upgrade programs (e.g., a major retailer might offer an incentive to carriers to use electric trucks on their contract). Keep ears open through industry networks.

An interesting one: the Scale AI supercluster (based in Montreal) provides co-funding for projects that use AI in supply chain/logistics. If a logistics company partners with a tech provider on an AI project (like optimizing loads or maintenance prediction), Scale AI can fund a chunk of it (up to 50%). Trucking firms that innovate with AI could tap into that.

6. Special Financing Programs: Aside from grants, note things like Leasing vs. Buying strategies – leasing companies can sometimes be more lenient (since they own the asset). Merchant cash advances or invoice factoring are common in trucking: if cash flow is tight because customers pay in 60 days, you might sell your invoices to a factor (they give ~90% now, rest later minus fee). It’s expensive money, but it’s an option to avoid missing fuel payments or payroll. Better is to secure a line of credit using accounts receivable as collateral – that’s something to negotiate with banks when you have steady revenue.

Also consider insurance premium financing (so you don’t have to pay your hefty insurance in one go annually) – many insurers offer monthly plans or third-party financing to spread it out.

7. Grants for Workforce and Safety: There are often small grants for safety upgrades (e.g., maybe a WSIB/WCB rebate for implementing a new safety program or installing certain safety equipment). In Canada, we also had the Employer Hiring Incentives post-pandemic, and some targeted at transportation sector because of driver shortages. If you hire apprentices (like mechanics) there are federal tax credits, and if you engage in the apprenticeship program for truck drivers (some provinces considering “Truck driver as an apprenticeship trade”), keep an eye out.

8. Environmental Credits and Carbon Markets: As regulations push for lower emissions, there may be credit systems. For example, Quebec’s cap-and-trade might indirectly create funds that go into programs like Écocamionnage. Also, the federal carbon tax has rebates for some interprovincial fuel usage for trucking (e.g., the federal Fuel Charge system and related relief for farmers, fishers, maybe remote trucking). Not exactly a grant, but be sure to claim any fuel tax rebates or exemptions you qualify for (e.g., in some provinces reefer fuel or off-road equipment fuel can get rebates, though highway trucking fuel generally not). But interjurisdictional transport often means you don’t pay carbon charge on fuel if going out of province or you might claim some back via IFTA settlements.

Staying Informed: Best practice is to periodically scan for new programs. For instance, budgets (both federal and Quebec) often introduce or extend programs. In Sept 2025, the feds announced funding for diversity in trucking (e.g., $500k project to support inclusion of women drivers). Quebec might have initiatives for training more truckers (maybe paying part of the cost of obtaining a Class 1 licence). Always check government portals or with industry associations.

Applying for Grants: When you go for a grant, treat it like a business proposal. You usually need to provide a project plan, costs, and expected outcomes (fuel saved, emissions reduced, jobs created, etc.). And they often pay after you incur costs or on milestones. Work with your CPA to ensure you can manage the cash flow and reporting (many grants require you to submit expense proof to get reimbursed). Also, note that some grants are taxable income for the business (they reduce the expense or count as income), so don’t double dip (e.g., if you get a 50% grant for a new $100k electric truck, you should only capitalize $50k for tax or include the grant in income).

TL;DR of key opportunities:

• Federal: Green Freight Program (up to 50% off eco-upgrades), zero-emission vehicle rebates (up to 50-100k+ per truck depending on type), BDC loans.

• Quebec: Écocamionnage (tens of thousands available for green tech and training), other MTQ/Transport Quebec funds, possibly regional development loans, Hydro Quebec or energy-efficiency incentives if electrifying fleet.

• SME grants: PME MTL startup grants, youth entrepreneurship grants, etc., which can give that initial push or help buy that first trailer.

• Training subsidies: Emploi-Québec often has programs for employer who train new workers, maybe covering part of wages for a period.

• Don’t forget small mercies: e.g., the Accelerated CCA is essentially a tax grant letting you write off equipment faster (even full expensing in year 1 for some classes). Use it to your advantage for tax deferral (the government basically gives you an interest-free loan via tax savings in early years).

By tapping into financing and grants, a trucking company can modernize its fleet, weather economic storms, and reduce its costs. It’s a competitive industry, so any edge – be it a lower interest loan or a $50,000 check from the government for cleaner trucks – can make a big difference to your bottom line. It’s worth the effort to explore these options. At Mackisen, we constantly advise our clients on what funding is out there, and help them prepare the needed financial projections or documentation to secure that money. Speaking of which...

Choose Mackisen CPA – Your Montreal Partner for Trucking Success

Navigating the complex world of trucking and logistics accounting is no easy haul. From keeping immaculate mileage logs and managing fuel taxes, to strategizing your compensation and expanding your fleet with the help of grants, there are countless decisions to make. The stakes – in terms of compliance and dollars – are high. That’s where Mackisen CPA Montreal comes in as your co-driver on the road to financial success.

Why Mackisen for Trucking and Logistics? We are a Montreal-based CPA firm focused on PME clients like you, with over 35 years of experience in audit, tax, and business advisory specifically tuned to Quebec and Canadian regulations. Our bilingual team understands the unique operational realities of the trucking industry – we’ve worked with owner-operators, fleet owners, freight brokers, and warehouse logistics firms. We know that in this business, every kilometre and every litre matters. Our approach is to deliver legal-grade, comprehensive solutions so that your accounting and tax compliance is not just a chore, but a strategic advantage.

At Mackisen, we help trucking professionals maximize deductions, stay compliant, and bulletproof their records. Here are just a few ways we add value:

• GST/QST and Fuel Tax Expertise: We build complete GST/QST compliance frameworks to ensure you claim every input tax credit on fuel, repairs, and equipment – while avoiding common audit triggers like invalid receipts or mischarging tax. We’ll assist with IFTA filings and even represent you in audits, having successfully defended clients in large CRA fuel tax audits in the past. Our team stays updated on evolving rules, like new Quebec tax measures or carbon charges, so you’re never caught off guard.

• Logbook and Per Diem Compliance: We’ll guide you in implementing best practices for logbook recordkeeping and integrating ELD data with your accounting. Worried about CRA denying your 80% meal claim? Let us review your logs and TL2 forms before you file – we ensure your documentation meets CRA’s strict criteria. We’ve seen how auditors think, and we pre-empt their challenges by fortifying your files (for instance, reconciling every claimed trip with supporting documents). With Mackisen, you can confidently take every per diem and travel deduction you’re entitled to.

• Strategic Tax Planning (Salary vs Dividends & Beyond): As outlined, choosing how to pay yourself is crucial. We provide tailored planning each year to hit the optimal balance. We also execute more advanced plans like income splitting within the framework of the law, and setting up holding companies or family trusts to safeguard wealth and multiply tax exemptions. If incorporation makes sense for a currently sole proprietor driver, we’ll facilitate that transition correctly (including avoiding any PSB pitfalls and structuring any “Driver Inc.” arrangement to be as defensible as possible). Essentially, we become your outsourced CFO, looking at the big picture of your business and personal finances combined.

• Audit Defense and Support: Mackisen CPAs are battle-tested in audits. If CRA or Revenu Québec comes knocking – perhaps to review your vehicle expenses or to conduct a sales tax audit – we step in as your representatives. Our firm is known for preparing meticulous, CRA-friendly audit binders that often satisfy auditors quickly, saving you time and stress. We anticipate the auditors’ questions and ensure the answers (with backup documents) are ready. And should any assessment be issued incorrectly, we are prepared to file objections and appeals on your behalf. Our combination of accounting precision and in-house tax legal knowledge means your case is handled with the rigor of a law firm and the practicality of an accounting firm.

• Comprehensive Services Under One Roof: Mackisen offers more than just year-end tax filing. We provide bookkeeping services (if you need monthly help), payroll services (so your drivers or your own salary are handled smoothly), financing advice (we can compile the financial statements and projections you need to secure that next truck loan or line of credit), and even connections to industry specialists (like insurance brokers, equipment lessors, etc.). We’ve helped clients prepare successful grant applications, providing the necessary financial data and narratives to meet program criteria. Our goal is to be a one-stop solution so you can focus on driving the business, while we handle the back office and strategic financial planning.

Above all, Mackisen CPA is committed to the success of Montreal’s small and medium enterprises. We take pride in being a locally-run firm with global standards, meaning you get the personal touch and quick responsiveness of a boutique advisor, with the depth of expertise of a large firm. When you work with us, you’re not a number in a system – you’re a valued partner. We take the time to understand your routes, your clients, your challenges (be it rising diesel costs or cross-border tax complexity), and we tailor solutions accordingly. In the ever-changing landscape of tax laws and transport regulations, having Mackisen as your ally means you’re always a step ahead.

So, whether you are looking to minimize your tax load, protect your assets, scale up your fleet, or simply sleep better knowing your compliance is handled, choose Mackisen. We’re passionate about helping trucking businesses thrive – because we know when our transport sector prospers, it drives the whole economy forward. Let our team of CPAs and tax lawyers navigate the accounting and tax highways for you, while you keep your eyes on the road to growing your business.

Ready to feel the difference? 📞 Contact Mackisen CPA Montreal today to schedule a consultation. Together, we’ll chart the best course for your trucking or logistics enterprise – and ensure that you keep more of your hard-earned money in the journey ahead.