Reminder: Registrants with year-ends on or after December 1, 2024 and Ontario Gross Sales of $2 million or greater to file annual financial statements
November 12, 2024
During the COVID-19 pandemic, the Ontario government amended the General Regulation (O. Reg. 26/05) under the Travel Industry Act, 2002 (TIA) to reduce burden on Ontario’s registered travel agencies and tour operators and to assist certain travellers impacted by the pandemic.
As communicated in March 2024, the temporary exemption from filing annual financial statements for registrants with Ontario Gross Sales of $2 million or greater will expire as of December 1, 2024.
December 1, 2024: Expiry of the temporary exemption from filing annual financial statements for registrants with Ontario Gross Sales of $2 million or greater.
- For a period of four years, from December 1, 2020 to November 30, 2024, registrants with Ontario Gross Sales of $2 million or greater were only required to file a Verification Statement (a self-attestation of financial position), subject to a limited exception. All registrants who fall in this category will have benefited up to four times from the temporary exemption.
- Registrants with Ontario Gross Sales of $2 million or greater whose year-end is on or before November 30, 2024 can still submit a Verification Statement for this year-end cycle. If a registrant is required to prepare an annual financial statement with a Review Engagement Report or Audit Opinion for any other purpose outside of TIA, it is still required to provide this report to TICO.
- Registrants with Ontario Gross Sales of $2 million or greater whose year-end is on or after December 1, 2024 will be required to submit to TICO annual financial statements with a Review Engagement Report or an Audit Opinion, as the registrant prefers.
Permanent burden reduction changes (implemented in 2020):
- Registrants whose Ontario Gross Sales are less than $2 million can choose to continue to submit a Verification Statement, as this was a permanent change as of March 30, 2020. This permanent change benefits approximately 70% of TICO’s registrants.
- Registrants whose Ontario Gross Sales are $10 million or greater are not required to submit an Audit Opinion and instead have the option to submit a Review Engagement Report, as this was a permanent change as of March 30, 2020.
Please see the table below for a summary of financial filing requirements:
|
Registrant’s Ontario Gross Sales during the previous fiscal year |
Annual financial documents required and time limitations |
Other financial |
|
Less than $2 million |
Required: Verification Statement |
N/A |
|
$2 million to less than $10 million |
For registrants with year-ends on or before November 30, 2024 A Review Engagement Report or Audit Opinion are only required to be submitted to TICO if already being completed for any other purpose. |
N/A |
|
$10 million to less than $20 million |
For registrants with year-ends on or before November 30, 2024 A Review Engagement Report or Audit Opinion are only required to be submitted to TICO if already being completed for any other purpose. |
|
|
Registrant’s Ontario Gross Sales during the previous fiscal year |
Annual financial documents required and time limitations |
Other financial |
|
$20 million or greater |
For registrants with year-ends on or before November 30, 2024 A Review Engagement Report or Audit Opinion are only required to be submitted to TICO if already being completed for any other purpose. |
Quarterly financial statements |
Why is the option to submit a Verification Statement expiring for registrants with Ontario Gross Sales of $2 million or greater?
The regulatory amendment that allowed registrants with Ontario Gross Sales of $2 million or greater to submit a Verification Statement was time-limited, with a view to reduce burden and cost as a result of the pandemic’s significant impacts on the sector.
As consumer demand for travel has recovered to pre-pandemic levels, it’s important for TICO to receive comprehensive financial information from larger registrants to help ensure consumers are protected.
Questions?
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