Chameleon carriers have quietly and systematically undermined the integrity of the trucking industry in Canada and the U.S. for decades. Untrained drivers, fake or nonexistent insurance, undercutting rates, and tax evasion through schemes like Driver Inc. are symptoms of a much deeper issue: the lack of enforcement and coordination between regulatory bodies.
Let’s be honest—the regulators have had decades to shut this down. And now, the only reason we’re even talking about it is because of the growing number of high-profile crashes flooding social media. The public is watching, and they’re demanding change.
If you're not familiar with chameleon carriers, check out my earlier blog karma, karma, karma, karma, karma Chameleon…. Canada’s Chameleon Carrier Crisis, where I explain the scam in more detail. In short, these are companies that dissolve and reincarnate under new names and registrations to dodge enforcement, liability, and oversight. And they’re allowed to do this because our provinces and territories don’t share data effectively. Alberta has been a hotbed for this issue since 2019, but it's not alone—this is a national failure.
Even after fatal crashes, these operators often have another Safety Fitness Certificate (SFC) waiting in the wings. Why? Because there’s no integrated system to flag them across jurisdictions. They hop from province to province—or state to state in the U.S.—and no one is any the wiser. It's a loophole, and they exploit it daily.
The FMCSA isn’t blameless—they ignored this problem for years, too. But now they’ve decided to do something about it. In 2025, they’re launching a new registration and vetting system. Here’s what it includes:
The FMCSA Plan:
So, What Is Canada Doing?
Nothing, we’ve got committees. Meetings. Thoughts and prayers after every crash. But no plan. No system. No timeline.
Transport Canada needs to build a program exactly like the FMCSA’s—now, not five years from now when we’re forced to reverse-engineer it at triple the cost. Just like the U.S., Canada struggles with regulatory inconsistency between provinces and territories. We may never harmonize weights and dimensions, but we can harmonize how we track, vet, and shut down fraudulent carriers.
Why It Matters:
Cross-border trade isn’t going away. In fact, closer integration between Canada, the U.S., and Mexico means we need to share data. That’s how we stop chameleon carriers from gaming the system.
Let’s stop pretending that deportations or blaming untrained drivers will fix trucking. It’s not the drivers—it’s the owners, the ones profiting off exploitation and safety shortcuts. Turning on a system like the FMCSA’s is like flipping a light switch and watching the cockroaches scatter.
Transport Canada, please do something. Get in the game.
One of the best things about living in Alberta is no Provincial sales tax, especially if you move here from a Province that has PST, it is like everything is on sale all the time! In my blog The Confusing World of Alberta’s Safety Fitness Certificates (SFC), I explained the differences between Federal and Provincial SFC and the additional regulations federally regulated carriers must be aware of in other jurisdictions. Another thing to be aware of is the carrier’s obligation to pay PST to the jurisdiction you are operating in. Disclaimer, I do not work in IRP, IFTA or PST, this information is general information I have learned, for specifics contact your IRP/IFTA tax consultant or British Columbia and Saskatchewan tax office.
PST Charges for Alberta Trucking Companies in British Columbia
Alberta-based trucking companies operating in British Columbia (B.C.), face Provincial Sales Tax (PST) in B.C. due to its specific rules for multijurisdictional vehicles (MJVs). For Alberta trucking companies, understanding how and when PST applies to their fleet is essential for staying compliant and avoiding unexpected tax assessments or audits.
Here’s a breakdown of how PST applies to Alberta-registered trucking companies when operating in B.C., based on information from the Consumer Tax Audit Manual and PST Act.
PST and Multijurisdictional Vehicles (MJVs) in B.C.
When Alberta trucking companies operate in B.C. using multijurisdictional vehicles (MJVs), they become subject to B.C.'s PST on a proportional basis. This proportion is calculated based on the ratio of kilometers traveled in B.C. compared to the total distance traveled in all jurisdictions.
Key Points to Note:
PST Charges for Alberta Trucking Companies in Saskatchewan
As an Alberta trucking company operating in Saskatchewan, understanding your Provincial Sales Tax (PST) obligations is crucial. Saskatchewan requires trucking companies based in Alberta, to pay PST on certain goods and services. Here is what Alberta trucking companies need to know about PST in Saskatchewan.
Understanding the Prorated Vehicle Tax (PVT)
Alberta trucking companies registered for interjurisdictional travel in Saskatchewan are subject to the Prorated Vehicle Tax (PVT). The PVT is designed to proportionally tax vehicles based on the distance they travel in Saskatchewan. If you have an apportioned vehicle registration (cab card) that includes Saskatchewan, you will pay the PVT upon registering your vehicles in the province.
This tax is calculated based on the taxable value of the vehicle, the applicable tax rate, the Saskatchewan distance ratio (the portion of total distance traveled in Saskatchewan), and the remaining months in the registration period. This ensures the tax reflects the vehicle's actual use in the province.
Staying Compliant: Best Practices
Alberta-based trucking companies can minimize the risk of tax complications by following these best practices:
Audit Implications for Alberta Trucking Companies
PST audits are common and are part of broader compliance checks that often include IFTA and IRP audits. A company may be selected for an audit if they’ve not been previously audited or if their tax filings raise red flags (e.g., exceptional mileage or fuel reporting). Trucking companies must be prepared for these audits by keeping thorough and accurate records of their operations, particularly when it comes to distances.
Conclusion
If you are an Alberta trucking company reporting kms to IRP and IFTA but, not paying PST in British Columbia or Saskatchewan you may want to investigate that. It's crucial for Alberta-based trucking companies operating in British Columbia and Saskatchewan to understand and comply with PST obligations in these provinces. Whether it's B.C.'s rules for multijurisdictional vehicles or Saskatchewan's Prorated Vehicle Tax, keeping track of kilometers traveled, properly estimating tax liabilities, and maintaining accurate records is essential for avoiding audits and penalties. By staying informed and prepared, carriers can ensure compliance and minimize the risk of unexpected financial obligations.
When you mix transportation in with economic corridors there is always the risk that safety will not be a priority over the economy. I want to address some critical safety gaps that have been ignored by TEC (Transportation and Economic Corridors) for years. Albertan’s should be deeply troubled by the neglect of crucial safety policies within Compliance and Oversight.
The Compliance and Oversight department monitors the overall safety of trucking companies in Alberta. Compliance and Oversight conducts audits and investigations to ensure compliance with the NSC standards. However, there are glaring issues that demand immediate attention:
1. **Non-Compliance with Intervention and Discipline Policies:** There is a disturbing trend of Compliance and Oversight failing to adhere to its own policies. Companies with significant safety violations are not being labeled as unsatisfactory, allowing them to operate under conditional status without proper intervention. This negligence has been repeatedly highlighted in audits by the Auditor General, yet no corrective actions have been taken.
2. **Flawed Third-Party Auditor (TPA) Program:** The TPA program, responsible for conducting NSC Standard 15 Audits on behalf of the Alberta government, is fundamentally flawed:
- Auditors do not have encryption keys to be able to download complete RODS. This compromised data is used for hours of service reviews, impacting carrier safety and public road safety.
- Lack of support for auditors, hindering their ability to communicate with TEC for assistance.
- Inadequate training and monitoring of auditors, leading to unreliable audit information.
- Inefficiencies in data processing and communication, undermining the accuracy and effectiveness of audits.
If any carrier failed a audit or got a penalty as a result of a audit by a TPA in the last 2 years, I would 100% appeal it. The TPA audits are not accurate because TPA auditors do not have the “key” to unlock the box, that contains the accurate RODS. Would you pay your income tax if you found out the T4’s information has been wrong for years? Pretty simple argument.
To address these urgent safety concerns, the following actions are proposed:
1. Immediate review of all TPA audits and compliance records since June 2022, to ensure accuracy and reliability.
2. Establish a streamlined process for handling TPA audit by providing encryption keys, enhancing transparency and accountability.
3. Enforce intervention and discipline policies rigorously, ensuring that unsafe carriers are marked unsatisfactory and penalized accordingly, promoting road safety and public confidence.
Continuing to ignore these issues and allowing unsafe carriers continued operation is validating the perception that Alberta highways are more dangerous today. Unfortunately, these issues will be ignored until there is another incident involving a Alberta trucking company that Compliance and Oversight deemed safe.
