TORONTO — TICO has issued a reminder for registrants with year-ends on or after Dec. 1, 2024 and Ontariogross sales of $2 million or more to file their annual financial statements.

During the 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,” said TICO in a statement.

Here’s more from TICO …

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.

TICO’s statement also included this FAQ: 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,” said TICO.

“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.”

Any questions can be directed to tico@tico.ca or 1-888-451-TICO (8426).