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 "Fund) twice a year within 90 days after the end of the registrant’s fiscal year and fiscal half year. The payments are 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.

NOTE: The Board of Directors of the Travel Industry Council of Ontario (TICO) approved an increase to the Compensation Fund Contribution Rate. Effective July 1, 2016, the Board approved a phased-in increase over the next two years as follows:

Phase 1 – The Compensation Fund Contribution Rate increased from $0.15 to $0.20 per thousand dollars of Ontario sales effective July 1, 2016.

Phase 2 – The Compensation Fund Contribution Rate increased from $0.20 to $0.25 per thousand dollars of Ontario sales effective April 1, 2017.


The Compensation Fund Assessment Rates are as follows:


For sales MADE BETWEEN July 1, 2016 and March 31, 2017: Retail rate is 20 cents per $1,000 of retail sales and the wholesale rate is 20 cents per $1,000 of wholesale sales. Note: There is a minimum assessment payment of $25 plus applicable taxes (PST) per filing period ($25 + $2 PST=$27.00).

For sales MADE ON OR AFTER April 1, 2017: Retail rate is 25 cents per $1,000 of retail sales and the wholesale rate is 25 cents per $1,000 of wholesale sales. Note: There is a minimum assessment payment of $25 plus applicable taxes (PST) per filing period ($25 + $2 PST=$27.00).


Form 1 and Explanatory Notes:

To obtain a Form 1 and Explanatory Notes - click here


To assist with the calculation of Form 1 Assessments during the transition period of the assessment rate from 20 cents (for sales up to March 31, 2017) to 25 cents (for sales on or after April 1, 2017) the following chart has been provided:


2017 Time Table for Form 1 Remittance:

Fiscal Year or Half Fiscal Year End

Remittance Due Date

Remittance Rates per $1,000 of Gross Sales

January 31, 2017

April 30, 2017

6 months @ 20¢ per $1,000 gross sales

February 28, 2017

May 31, 2017

6 months @ 20¢ per $1,000 gross sales

March 31, 2017

June 30, 2017

6 months @ 20¢ per $1,000 gross sales

April 30, 2017

July 31, 2017

5 months @ 20¢ per $1,000 gross sales and 1 month @ 25¢ per $1,000

May 31, 2017

August 31, 2017

4 months @ 20¢ per $1,000 gross sales and 2 months @ 25¢ per $1,000

June 30, 2017

September 30, 2017

3 months @ 20¢ per $1,000 gross sales and 3 months @ 25¢ per $1,000

July 31, 2017

October 31, 2017

2 months @ 20¢ per $1,000 gross sales and 4 months @ 25¢ per $1,000

August 31, 2017

November 30, 2017

1 month @ 20¢ per $1,000 gross sales and 5 months @ 25¢ per $1,000

September 30, 2017

December 31, 2017

6 months @ 25¢ per $1,000 gross sales 

October 31, 2017

January 31, 2018

6 months @ 25¢ per $1,000 gross sales

November 30, 2017

February 28, 2018

6 months @ 25¢ per $1,000 gross sales

December 31, 2017

March 31, 2018

6 months @ 25¢ per $1,000 gross sales

 

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.

Even if you have zero sales for a period, a Form 1 must be submitted along with the minimum payment of $25.00 plus PST (a total of $27.00).

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.

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 registrants 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.