Corporate Tax Planning for Logistics & Transportation
Fleet CCA strategy, fuel tax (IFTA) planning, owner-operator vs employee structures, driver payroll, meal allowances, salary-dividend optimization, SBD threshold management and holding companies built specifically for Canadian trucking and logistics corporations. From $400.
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Trucking & Logistics Clients
Trucking Margins Are Thin. Tax Planning Protects Them
A logistics company running on 5% to 8% net margins cannot afford to overpay tax. Yet most trucking and freight corporations do exactly that. The fleet that could generate six figures in CCA is not depreciated strategically. Fuel taxes paid across provinces under IFTA are not reconciled for refunds. Owner-operators are misclassified as employees, triggering CPP, EI and WSIB the company never owed. Driver meal allowances and per diems are left unclaimed. The salary-dividend mix for the owner is never modelled. On a thin-margin business, every one of these gaps is the difference between a profitable year and a break-even one, and the planning window closes the moment your fiscal year ends.
We provide corporate tax planning for logistics and transportation companies across Ontario and Canada. Fleet CCA strategy, IFTA fuel tax, owner-operator structures, driver payroll, meal allowances, salary-dividend optimization, SBD management and holding company evaluation. From $400. AFFORDABLE flat fees.
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Tax Planning Services for Transportation Corporations
Fleet CCA Strategy
Trucks, trailers, equipment. Class 10/16 depreciation. Purchase timing for Year 1 deduction.
Fuel Tax & IFTA
Interprovincial fuel tax reconciliation, IFTA filing, fuel tax refund recovery.
Owner-Operator Structures
Independent contractor vs employee classification. CPP, EI, WSIB avoided where correct.
Driver Meal Allowances
Per diem and simplified meal claims for long-haul drivers. TL2 and corporate deductions.
SBD Threshold Management
Keep active income under $500,000. 12.2% vs 26.5%. Passive income $50K limit monitored.
Holding Company & Retirement
Surplus earnings, fleet financing, asset protection, retirement drawdown planning.
How We Plan Corporate Tax for Trucking & Logistics
A proactive 6-step planning process. Not reactive. Not at year-end. AFFORDABLE flat fees.
60-Day Pre-Year-End Review
Tax planning after year-end is not planning. It is damage control.
- Year-to-date freight and hauling revenue projected 60 days before fiscal year-end.
- Projected corporate taxable income calculated after fuel, repairs, payroll and CCA.
- SBD threshold check: will active income exceed $500,000? Bonus or salary modelled.
- Fleet purchases timed: buy a truck or trailer before year-end for current-year CCA.
- Fuel tax refunds and IFTA reconciliations reviewed before the window closes.
Fleet CCA Strategy
Your fleet is your single largest CCA opportunity. Most companies underclaim it.
- Highway tractors and trucks over 11,788 kg: Class 16 at 40% CCA.
- Trailers and lighter vehicles: Class 10 at 30% CCA.
- Accelerated Investment Incentive: up to 1.5x CCA in Year 1 on new and used units.
- Purchase timing: a $150,000 tractor bought in December generates CCA in the current year.
- Lease vs buy analysis: full deduction on lease payments vs CCA plus interest on financed units.
Fuel Tax and IFTA Planning
Fuel is your biggest variable cost. The tax on it is recoverable.
- IFTA quarterly returns reconciled across all provinces and states travelled.
- Fuel tax paid at the pump matched against distance travelled per jurisdiction.
- Refunds claimed where fuel tax paid exceeds tax owed for kilometres driven.
- Ontario IFTA and carbon charge treatment reviewed for accuracy.
- ITCs on fuel HST claimed in full on the corporate HST return.
Owner-Operator vs Employee Classification
Misclassifying drivers is the costliest mistake in trucking tax.
- Owner-operators with their own trucks and incorporation: independent contractors (T4A or corp-to-corp).
- Company drivers operating company trucks on a set schedule: employees (T4, CPP, EI, WSIB).
- Correct classification avoids unnecessary CPP, EI and WSIB on true contractors.
- CRA reassessment risk minimized through documented contractor agreements.
- Corp-to-corp arrangements with owner-operators structured to optimize both sides.
Driver Meal Allowances and Per Diems
Long-haul drivers are entitled to meal claims most companies never use.
- Long-haul truck drivers can claim 80% of meal costs (vs 50% for others) under the simplified method.
- Simplified method: $23 per meal, up to $69/day, no receipts required, for eligible trips.
- TL2 form supports the driver's personal claim; the corporation documents the trips.
- Lodging, showers and other on-the-road expenses tracked and deducted.
- Per diem policies structured to be tax-efficient for both the company and drivers.
Salary-Dividend, SBD and Holding Company
The owner's compensation and the company's structure determine the final tax bill.
- Salary set to create RRSP room. Dividend top-up to save CPP. Updated annually.
- Year-end bonus to keep active income under the $500,000 SBD threshold.
- Passive investment income monitored against the $50,000 limit that erodes the SBD.
- Holding company to hold real estate (yard, terminal) and surplus earnings.
- Retirement drawdown plan: dividends timed to fill low-income years tax-efficiently.
Free Trucking & Logistics Tax Planning Consultation
Free Trucking & Logistics Tax Planning Consultation
Case Studies: Logistics & Transportation Tax Planning
Long-Haul Carrier, Mississauga ($1.4M Revenue, 6 Trucks)
Trucking company underclaiming CCA on its fleet and not reconciling IFTA. We restructured fleet CCA using Class 16 at 40%, timed a $180K tractor purchase before year-end, recovered $14,200 in IFTA fuel tax refunds across 2 years and optimized owner compensation. Total Year 1 savings: $41,600. Get Started →
Freight Brokerage, Brampton ($720K Revenue)
Freight broker treating 4 owner-operators as employees, paying CPP, EI and WSIB it did not owe. We reviewed the arrangements, reclassified them as independent corp-to-corp contractors with proper agreements, and recovered $19,800 in overpaid source deductions across 2 years. CRA reassessment risk eliminated.
Owner-Operator, Vaughan ($280K Revenue)
Single owner-operator incorporated but never claiming driver meal allowances or optimizing compensation. We applied the simplified long-haul meal method (80% of $69/day), claimed full fleet CCA, restructured to salary-dividend split. Annual savings: $11,400 plus $6,200 in meal deductions previously left unclaimed. Tax Planning →
Regional Carrier, Markham ($2.2M Revenue, Owns Yard)
Carrier holding its terminal yard property inside the operating company, exposing real estate to trucking liability, with $95K passive rental income eroding the SBD. We set up a holding company, moved the yard out, restored full SBD access and built a retirement drawdown plan. Tax saved: $24,300/year.
Transportation Tax Planning Opportunities by Revenue
| Revenue | Key Planning Strategy | Typical Annual Savings |
|---|---|---|
| Under $250K (owner-operator) | Fleet CCA + meal claims + salary-dividend | $6,000 to $12,000 |
| $250K to $750K | IFTA recovery + driver classification + CCA timing | $12,000 to $25,000 |
| $750K to $1.5M | SBD management + fleet financing + holdco evaluation | $20,000 to $40,000 |
| $1.5M to $5M | Holding company + passive income + multi-corp structure | $35,000 to $70,000 |
| $5M+ | Full restructuring + real estate corp + succession | $60,000+ |
The Savings Compound: $25,000 saved annually and reinvested at 7% for 12 years becomes over $475,000. On thin trucking margins, tax planning is the highest-return decision you make each year.
Fleet CCA Classes for Transportation Equipment
| Asset | CCA Class | Rate | Year 1 with Accelerated |
|---|---|---|---|
| Highway tractors (over 11,788 kg) | Class 16 | 40% | Up to 60% |
| Trailers | Class 10 | 30% | Up to 45% |
| Trucks under 11,788 kg, vans | Class 10 | 30% | Up to 45% |
| Computer and dispatch systems | Class 50 | 55% | Up to 82.5% |
| Forklifts, yard equipment | Class 8 | 20% | Up to 30% |
| Terminal/warehouse building | Class 1 | 4% to 6% | Straight-line |
| Telematics and ELD hardware | Class 50 | 55% | Up to 82.5% |
| Tools under $500 each | Class 12 | 100% | Full write-off Year 1 |
Class 16 Is Powerful: A $180,000 highway tractor in Class 16 with the Accelerated Investment Incentive can generate over $100,000 in CCA in Year 1. At the 12.2% SBD rate that reduces tax by $12,200 in the first year alone.
What Our Transportation Tax Planning Includes
| Service | What We Do |
|---|---|
| Pre-year-end review | 60-day review. Revenue projection, SBD check, fleet purchase timing. |
| Fleet CCA strategy | Class 16/10/50 optimized. Accelerated Investment Incentive applied. |
| IFTA and fuel tax | Quarterly reconciliation across jurisdictions. Refund recovery. |
| Driver classification | Owner-operator vs employee reviewed. Contractor agreements documented. |
| Meal allowances | Long-haul 80% simplified method. TL2 support. Per diem policy. |
| Salary-dividend modelling | 3 scenarios. RRSP room, CPP savings, updated annually. |
| SBD threshold management | Bonus or salary to keep active income under $500K. |
| Passive income management | $50K limit monitored. Holding company evaluated. |
| Holding company structure | Yard/terminal real estate and surplus earnings separated. |
| Quarterly check-ins | Income and fleet tracked quarterly. Real-time adjustments. |
Does Your Transportation Company Need Better Tax Planning?
- You have never had a pre-year-end tax planning meeting with your CPA
- Your fleet CCA is not optimized using Class 16 for highway tractors
- You are not reconciling IFTA or recovering interprovincial fuel tax refunds
- Owner-operators are classified as employees, paying CPP, EI and WSIB you may not owe
- Long-haul driver meal allowances and per diems are not being claimed
- Your salary-dividend split has not been modelled for the current year
- Active income is approaching or exceeding $500,000 with no strategy
- Passive income inside your corporation is approaching $50,000
- You bought a truck in January when buying in December would have saved tax
- Your terminal yard or real estate is held inside the operating company
- You have no retirement drawdown plan for your corporate surplus
- You want proactive tax planning, not reactive tax filing
Transportation Tax Planning from $400. Fixed Fee.
Fleet CCA, IFTA, driver classification, SBD management. 30-Day Money-Back.
Why Transportation Companies Choose Gondaliya CPA
Transportation Strategists
Fleet CCA, IFTA, owner-operators, driver meals, multi-corp structures.
Proactive, Not Reactive
60-day pre-year-end review. Quarterly check-ins. Real-time adjustments.
Fixed-Fee Pricing
No hourly. 30-Day Money-Back. 60-Day Fees-Matching.
1300+ Reviews
Canada's most AFFORDABLE CPA. Flat fees for every service.
Transportation Tax Planning Pricing
| Service | Fee | Includes |
|---|---|---|
| Tax planning (under $100K revenue) | From $400 | Year-end strategy, fleet CCA, salary-dividend |
| Tax planning ($100K-$500K) | From $2,450 | IFTA, driver classification, full planning, quarterly check-ins |
| Tax planning ($500K-$1.5M) | From $4,900 | Holding company, fleet financing, retirement, estate planning |
| Holding company setup | From $1,200 | Incorporation, share structure, Section 85 rollover coordination |
| Monthly bookkeeping | From $150/month | Foundation for all planning. HST filing and T2 FREE. |
| Standalone year-end review | From $500 | One-time pre-year-end strategy session with action plan. |
Know Your Exact Fee Before We Start
AFFORDABLE flat fee. 30-Day Money-Back. 60-Day Fees-Matching.
Frequently Asked Questions: Transportation Tax Planning
Meet Your Transportation Tax Planning Specialists
Sharad Gondaliya, CPA
Founder & Managing Director
Gondaliya CPA Professional Corporation
Sharad leads transportation tax planning engagements, fleet CCA strategy, owner-operator structuring, holding companies and succession planning for carriers.
Vandana Goel, CPA
Senior Accountant
Gondaliya CPA Professional Corporation
Vandana handles trucking bookkeeping, IFTA and fuel reconciliation, driver payroll, quarterly income tracking and compensation modelling for tax planning.
What Our Clients Say
1300+ five-star reviews from business owners across Ontario and Canada.
10 Smart Tax Planning Strategies for Transportation Corporations
| # | Strategy | Why It Saves You Money |
|---|---|---|
| 1 | Maximize fleet CCA using Class 16 for tractors | 40% rate. Up to 60% Year 1 with Accelerated Incentive. |
| 2 | Reconcile IFTA and recover fuel tax | Refunds where fuel tax paid exceeds tax owed per jurisdiction. |
| 3 | Classify owner-operators correctly | Avoid CPP, EI and WSIB on true contractors. Recover overpayments. |
| 4 | Claim long-haul driver meal allowances | 80% of $69/day under the simplified method. Often unclaimed. |
| 5 | Time truck purchases before year-end | CCA claimed in the acquisition year. 12-month head start. |
| 6 | Keep active income under $500K SBD | 12.2% vs 26.5%. $14,300 saved per $100K under threshold. |
| 7 | Optimize salary-dividend split annually | RRSP room + CPP savings. Changes each year with income. |
| 8 | Monitor passive income against $50K limit | Over $50K erodes SBD. Holding company protects it. |
| 9 | Hold the yard/terminal in a separate company | Isolates real estate from liability. Preserves operating SBD. |
| 10 | Quarterly income check-ins, not annual | Catch fuel and rate changes early. Adjust strategy mid-year. |
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Stop Overpaying Tax. Start Planning.
Transportation tax planning from $400. Fleet CCA, IFTA, driver classification, SBD, retirement. AFFORDABLE flat fees.