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ontario regulation 101/20

made under the

Travel Industry Act, 2002

Made: March 27, 2020
Filed: March 30, 2020
Published on e-Laws: March 30, 2020
Printed in The Ontario Gazette: April 18, 2020

Amending O. Reg. 26/05

(GENERAL)

1. Section 22 of Ontario Regulation 26/05 is revoked and the following substituted:

Financial documents

22. (1) Every registrant shall file with the registrar the financial documents required by the following Table for each fiscal year:

 

Item

Column 1

Registrant’s sales in Ontario during the previous fiscal year

Column 2

Annual financial documents required

Column 3

Other financial documents required

1.

< $2m

Either a verification statement or annual financial statements, as the registrant prefers

n/a

2.

$2m - < $10m

Annual financial statements

n/a

3.

$10m - < $20m

Annual financial statements

1. For travel agents: semi-annual financial statements

2. For travel wholesalers: quarterly financial statements

3. For registrants who are both travel agents and travel wholesalers: quarterly financial statements

4.

$20m +

Annual financial statements

Quarterly financial statements

 

(2) The financial documents shall be filed in accordance with the following timelines:

1. A verification statement or annual financial statements shall be filed within three months after the end of each of the registrant’s fiscal years.

2. Semi-annual financial statements shall be filed within 45 days after the end of each of the registrant’s fiscal half-years.

3. Quarterly financial statements shall be filed within 45 days after the end of each of the registrant’s fiscal quarters.

(3) The registrar may grant a registrant an extension to the timelines specified in subsection (2).

(4) A verification statement shall,

(a) set out,

(i) the registrant’s total assets and liabilities at the end of its fiscal year,

(ii) the registrant’s total revenue during its fiscal year,

(iii) the registrant’s total expenses during its fiscal year, and

(iv) any other information required by the registrar;

(b) be in a form approved by the registrar; and

(c) be attested to by,

(i) the registrant, if the registrant is an individual,

(ii) a director or officer of the registrant, if the registrant is a corporation, or

(iii) a partner of the registrant, if the registrant is a partnership.

(5) Annual financial statements, semi-annual financial statements and quarterly financial statements shall include,

(a) a statement of sales in Ontario made during the period to which the financial statements refer;

(b) a balance sheet;

(c) an income statement;

(d) a cash flow statement; and

(e) a reconciliation of the trust accounts maintained under section 27.

(6) Annual financial statements shall be accompanied with either a review engagement report or an audit opinion, as the registrant prefers. The report or opinion shall be prepared by a public accountant licensed under the Public Accounting Act, 2004.

(7) For greater certainty, semi-annual financial statements and quarterly financial statements are not required to be accompanied with a review engagement report or audit opinion.

(8) If additional information is necessary to provide an accurate and complete review of the registrant’s financial position, the registrar may require that the registrant file financial documents that consolidate the registrant’s financial documents with,

(a) the financial documents of another registrant; or

(b) if the registrant is a corporation, with the financial documents of another person who is a shareholder associated with the registrant.

(9) If the registrar has reason to believe that a registrant is in financial difficulty, the registrar may require that the registrant provide to the registrar,

(a) a written statement of the registrant’s current net working capital, if the registrant is not a person described in subsection 24 (4); or

(b) a written statement that the registrant is a person described in subsection 24 (4), if the registrant is such a person.

(10) The registrant shall comply with subsection (8) or (9) within the time that the registrar specifies.

(11) The registrar may require that financial documents filed under subsection (8) or a statement provided under subsection (9) be verified by affidavit.

2. (1) Subsection 24 (1) of the Regulation is revoked.

(2) Subsection 24 (2) of the Regulation is revoked and the following substituted:

(2) A registrant shall maintain current assets greater than its current liabilities.

(3) Subsection 24 (3) of the Regulation is amended by striking out “working capital” in the portion before clause (a) and substituting “current assets and current liabilities”.

(4) Clause 24 (3) (b) of the Regulation is amended by striking out “section 8” and substituting “subsection 8 (5)”.

(5) The Table to section 24 of the Regulation is revoked.

3. (1) Subsection 25 (2) of the Regulation is amended by striking out “statements” in the portion before clause (a) and substituting “documents”.

(2) Subsection 25 (5) of the Regulation is amended by striking out “statements” and substituting “documents”.

(3) Subsection 25 (6) of the Regulation is amended by striking out “statements” and substituting “documents”.

4. (1) Subsection 28 (1) of the Regulation is amended by striking out “statements” and substituting “documents”.

(2) Subsection 28 (1.1) of the Regulation is amended by striking out “financial statements” and substituting “financial documents” and by striking out “the statements relate” at the end and substituting “the documents relate”.

(3) Subsection 28 (3) of the Regulation is amended by striking out “statements” and substituting “documents”.

5. Section 46 of the Regulation is revoked and the following substituted:

Duty of registrant who resells travel services

46. (1) If a registrant acquires rights to travel services for resale to other registrants or to customers, and the supplier fails to provide the travel services paid for by a customer, the registrant who acquired the rights for resale shall,

(a) reimburse the customer;

(b) provide comparable alternate travel services that are acceptable to the customer; or

(c) provide the customer with a voucher, certificate, coupon or similar document that is acceptable to the customer, for future redemption towards travel services.

(2) Despite subsection (1), if the supplier’s failure to provide the travel services is related to coronavirus (COVID-19), the registrant may elect to provide the customer with a voucher, certificate, coupon or similar document, for future redemption towards travel services.

(3) The voucher, certificate, coupon or similar document referred to in subsection (2) shall,

(a) be of at least equal value to the travel services not provided; and

(b) be redeemable for a period of at least one year after the day it was issued, but not be limited to acquiring travel services that take place during that period.

(4) Subsections (2) and (3) apply with respect to a supplier’s failure to provide travel services that occurs on or after the day this subsection comes into force.

(5) Subsections (2), (3), (4) and this subsection are revoked on April 1, 2021.

6. The Regulation is amended by adding the following section:

Application re voucher, certificate, coupon or similar document

56.1 In sections 57 to 71,

(a) the person who redeems a voucher, certificate, coupon or similar document for travel services is considered to be the person who pays for the travel services; and

(b) the value of the travel services for which the voucher, certificate, coupon or similar document was redeemed is considered to be the amount paid.

7. (1) Paragraphs 5 to 7 of subsection 57 (3) of the Regulation are revoked and the following substituted:

5. Travel services that were to be received as a prize, award or goodwill gesture, including travel services that were to be received because of the redemption of a voucher, certificate, coupon or similar document that was itself received as a prize, award or goodwill gesture.

6. Travel services that the customer did not pay for with cash or by a cheque, credit card or other similar payment method, except that this paragraph does not apply to travel services obtained by redeeming a voucher, certificate, coupon or similar document.

(2) Section 57 of the Regulation is amended by adding the following subsections:

(5) Subsections (1) to (4) apply with respect to the holder of a voucher, certificate, coupon or similar document issued by a registrant that has not been redeemed as if it has been redeemed, if,

(a) it is impossible to redeem the voucher, certificate, coupon or similar document because a registered travel agent or registered wholesaler became bankrupt or insolvent or ceased to carry on business; and

(b) the bankruptcy, insolvency or ceasing to carry on business referred to in clause (a) is related to coronavirus (COVID-19).

(6) Subsection (5) and this subsection are revoked on April 1, 2022.

8. Clauses 57.1 (4) (d) to (f) of the Regulation are revoked and the following substituted:

(d) amounts for travel services that were to be received as a prize, award or goodwill gesture, including travel services that were to be received because of the redemption of a voucher, certificate, coupon or similar document that was itself received as a prize, award or goodwill gesture;

(e) amounts for travel services that the customer did not pay for with cash or by a cheque, credit card or other similar payment method, except that this clause does not apply to travel services obtained by redeeming a voucher, certificate, coupon or similar document;

9. Subsection 58 (2) of the Regulation is amended by striking out “section 46” at the end and substituting “subsection 46 (1)”.

10. Subsection 58.1 (2) of the Regulation is amended by striking out “section 46” at the end and substituting “subsection 46 (1)”.

11. Subsection 71 (8) of the Regulation is amended by striking out “Sections 56 to 69 apply” at the beginning and substituting “Sections 56 to 69, as they read at the relevant time, apply”.

Commencement

12. This Regulation comes into force on the day it is filed.

 

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