A private Nova Scotia company that has received more than $184 million in public funding over the past eight years to provide emergency care for some of the province's most vulnerable children and disabled adults is rapidly losing its workforce — and the workers who remain say the situation has become a genuine safety crisis.
Arden Professional Client Care, which provides around-the-clock support for clients in private homes across Nova Scotia, sent an all-staff email on March 16 disclosing the results of a Canada Revenue Agency (CRA) audit. The audit found that the company had not been issuing proper tax documents or reporting contractor payments to the CRA — a revelation that has since triggered a wave of resignations.
A Last Resort for the Most Vulnerable
Arden's workers are classified as independent contractors, each responsible for the care of a disabled adult or a child in government custody. The province turns to companies like Arden only when no group home placement is available — making these workers the final safety net for individuals with profound and complex needs.
"They're extremely vulnerable people. It's very much the end of the road, as far as I understand it, with regards to care," one contractor told CBC News, speaking anonymously out of fear of retaliation.
"These people have extreme schizophrenia, extreme autism — non-verbal autism — which is extremely challenging to try and communicate and to understand the client as well."
The departure of experienced caregivers leaves those clients in a precarious position. For individuals who depend on consistent, trained, and familiar support workers, sudden staffing gaps are not merely an inconvenience — they can represent a direct threat to physical safety and emotional wellbeing.
Widespread Belief in a Tax Exemption That May Not Exist
Prior to the March announcement, many of Arden's contractors operated under the belief that their income was exempt from taxation. That understanding was reflected in an internal worker petition bearing hundreds of signatures.
In communications to staff, Arden management indicated it disagreed with the CRA's position. Executive director Matt Suter referenced paragraph 81(1)(h.1) of the Income Tax Act — a provision relating to social assistance payments made under "informal care programs" — in the March 16 email to contractors.
However, Suter acknowledged that the CRA had "clarified through recent interpretation and related case law that services structured like ours do not qualify under this exemption, and payments must therefore be reported."
"I was shocked and very confused by the email and I'm worried about what this meant for other contractors, the clients and myself." — Arden contractor, speaking anonymously
In a statement to CBC News, Arden said it is now complying with the CRA's direction and is working with the provincial government to ensure there are "no changes to client care and safety." The company also thanked contractors for their "ongoing dedication."
Contractors Now Face Potential Back-Tax Bills
For many contractors, the immediate concern is financial. Workers who believed for years that their income was non-taxable may now face back-tax assessments covering multiple years of earnings — a prospect that is contributing to both anxiety and departures from the workforce.
The situation raises broader questions about accountability and oversight when hundreds of millions in public dollars flow through private intermediaries to support the province's most vulnerable citizens. Critics of the current model argue that when private companies manage government-funded care, the people who suffer most when things go wrong are those who can least afford it — the clients themselves.
For disability advocates, the unfolding crisis in Nova Scotia is a cautionary tale: when structural and financial problems destabilise the care workforce, it is disabled adults and children in government care who absorb the consequences.
Source: CBC Health. Original reporting by Shaina Luck, CBC News.