Canadian information sharing: worker Miss classification

By George Waggott, founder and Roberto Fonseca-Velazquez, law student

George Waggott Law

Canada’ federal Budget 2025 proposes to amend the Canadian rules for lawful information sharing pursuant to the Income Tax Act and the Excise Tax Act (Canada). These measures will allow the Canada Revenue Agency to share taxpayer information under the Income Tax Act and confidential information under the Excise Tax Act. 

The relevant information will be shared with Employment and Social Development Canada, purportedly for the purposes of administering and enforcing the Canada Labour Code as it relates to the classification of workers (as either employees or independent contractors.)

This measure, which was adopted as part of Canada‘s federal budget in November 2025, is intended to address what is often understood to be a widespread issue regarding the misclassification of employees as independent contractors in the trucking industry. It is possible that there are similar initiatives or inquiries which may be underway in other industries. 

These changes are expected to come into force on the date enacting legislation receives Royal Assent.

For more information about George Waggott Law, please see: www.georgewaggott.com, or contact: george@georgewaggott.com