When most freight is subcontracted, the original contractor is the only one who pays freight. In the Driver Inc. model, what they've been doing is paying the Driver Inc. subcontractor GST. We've seen pay stubs where essentially it's just paid as a revenue source. It's not a GST-eligible ITC, but the carrier claims the ITC knowing that Driver Inc. will never remit it as GST, or they'll include it in other income. This means they're getting 100% credit on one side and, at most, marginal tax, but at worst, it's zero. In Alberta, that's 5%. In Ontario, we're talking HST, say 13%.
