Compensation Fund Remittance (Form 1)
On February 1, 2024, TICO announced changes to its fee structure. Please click here to learn more.
As registrants have year-ends throughout the year, there will be a period of transition as the new fees come into effect. Please click here for more information about when your Compensation Fund assessment will be due, based on your company’s year-end.
Form 1 and Explanatory Notes:
TICO will email each registrant a customized Form 1 during the transition period to ensure the correct assessment is applied.
Compensation Fund Contributions (Form 1 Remittance)
In accordance with the Travel Industry Act, 2002 and TICO's Payment Schedule every travel agent and travel wholesaler registered in Ontario is required to pay into the Ontario Travel Compensation Fund.
The payment is based on Ontario gross sales. Gross sales include all travel services such as transportation or sleeping accommodation for the use of a traveller, tourist or sightseer or other services combined with that transportation or sleeping accommodation.
Please click here to view the Compensation Fund transition schedule, based on your company’s fiscal year-end. Once the transition period is complete, Compensation Fund assessments will only be due once per year, within 90 days of a registrant’s fiscal year-end.
The Compensation Fund Assessment Rates are as follows:
Rate for registrants with year-ends up to March 31, 2024
Retail rate is 25 cents per $1,000 of retail sales and the wholesale rate is 25 cents per $1,000 of wholesale sales, plus PST.
Note: There is a minimum assessment payment of $25 plus applicable taxes (PST) per filing period.
New rate for registrants with year-ends on or after of April 1, 2024
Retail rate is 5 cents per $1,000 of retail sales and the wholesale rate is 5 cents per $1,000 of wholesale sales, plus PST.
Note: There is a minimum assessment payment of $25 plus applicable taxes (PST) per year.
The Form 1 shall be certified by the registrant or an authorized officer or partner of the registrant as to the accuracy of the information contained in the return. The Form 1 does not need to be completed by a public accountant.
One Form 1 should be completed for the head office and all branch locations.
Extensions will not be granted. It is the responsibility of each registrant to ensure that the Form 1 filing is completed by the appropriate deadline. All Form 1 filings are entered into TICO's database and remain part of the permanent history of each registrant. These filings may be reviewed to determine whether the registrant is in compliance with the Travel Industry Act, 2002 and Regulation 26/05 with respect to it's payments to the Fund.
Failure to file Form 1 is a contravention of the Regulation and the Registrar appointed under the Act may initiate administrative action, including revocation of registration under the Act.
TICO Late Filing Fees -- NEW
As of April 1, 2024, TICO has instituted new late filing fees to encourage timely submission of required documentation and payment for registration renewals and Compensation Fund filings. This will allow TICO to ensure efficient processing without the need for extensive reminders and individual follow-ups.
|
Type |
Late Fee |
|
Compensation Fund (Form 1) filing (due within 90 days of year-end) |
$100 |
|
Annual financial statement filing (due within 90 days of year-end) |
$100 |
|
Registration renewal (due within 90 days of year-end) |
$100 |
|
Notice of business change (due within 5 days of change) |
$25 |
Sales for the Purpose of Contributions to the Ontario Travel Industry Compensation Fund
Contributions to the Ontario Travel Industry Compensation Fund are made in accordance with the Travel Industry Act, 2002 and TICO's Payment Schedule set under clause 12 (1)(c) of the Safety and Consumer Statutes Administration Act, 1996 by every registrant. The Regulation defines sales in Ontario, when used in reference to a period of time to mean:
(a) in the case of a registered travel agent, the amount paid or to be paid to or through the travel agent for all travel services sold in Ontario during the relevant period, or
(b) in the case of a registered travel wholesaler, the amount paid or to be paid to or through the travel wholesaler for all travel services sold in Ontario during the relevant period.
The following details what is included in the calculation of Ontario Sales for retailers and wholesalers.
Retail Sales
Included:
Sales include all travel sales to a consumer including taxes, (except for GST/ HST), that are invoiced to a consumer that include trips, accommodations and transportation, billed individually or in a package. Travel Insurance is included as sales and a registrant's service fees are included in sales.
It should be noted that the method of payment does not matter when calculating what is included in sales. For example, if the consumer pays by cash or cheque directly to the travel agent, this is considered a sale. Likewise, if the consumer pays by credit card, which is passed directly to the supplier, this is also included in sales.
Not Included:
- Travel merchandise, such as luggage is not included in sales.
- Override commissions are not included in sales.
Wholesale Sales
Included:
Sales include all travel sales to registered retail agencies in Ontario. Sales include all taxes except for GST/HST.
Not Included:
Sales made to retail agencies not located in Ontario.