New tax laws require web platforms to report gig workers' income to CRA

New federal legislation will require digital platforms such as Uber and DoorDash to report information about their workers' income to the Canada Revenue Agency, a move one expert says will allow the federal government to spot those who aren't accurately reporting their earnings. 

But some in the sector feel gig workers are being unfairly targeted when they are already making low wages with no benefits.

Under the federal legislation, gig platform operators such as Uber and DoorDash are now required to collect and report income-related information, such as personal information and earnings, about their workers to the Canada Revenue Agency each year by Jan. 31. 

The legislation was part of the federal government's 2023 budget but comes into effect this year. 

Uber driver Rocco Cornacchia, who has been driving for the company in the Greater Toronto Area for about a year, says he's made it a priority to keep track of his earnings for tax purposes. 

"It's not going to affect me in any way," he said. 

He said he thinks the new rules are a way for the government "to make sure that nobody's cheating them for taxes." 

Cracking down on self-employment income 

While gig workers have always been required to report their income during tax season, this new legislation will enable CRA to better enforce those requirements, said David Macdonald, a senior economist with the Canadian Centre for Policy Alternatives. 

"It's certainly going to ensure that anybody who's working for these platforms can't skip out on their taxes, because it will now become clear this is self-employment income," he said. 

But Macdonald said it creates a tricky situation where digital platforms are required to report income information about their employees, but not to provide those workers with regular benefits or sick days like other employers. 

"I think that this creates now a precedent that this is acceptable that we have these gig platforms that look a lot like employers, they're now reporting information like employers to the CRA, but they are not bound by labour law," he said. 

Earla Phillips, vice president of the Rideshare Drivers Association of Ontario, said she'd like to see the federal government do more to protect gig workers first. 

She says the responsibility of filing with the CRA should rest with the workers themselves, as they are not employees of the companies now required to report.

"They're asking these gig work companies to report as if we're employees, but we don't have any worker rights," she said. 

"So they kind of jumped the gun on this."

In statements provided to CBC Toronto, spokespeople for Uber, Lyft, and DoorDash all said their companies will comply with the new requirement.