The Travel Industry Council of Ontario (TICO) has unveiled a new accounting option for wholesale registrants.
As shared in a bulletin on Thursday (June 22), TICO-registered wholesalers now have the option of depositing all sales of travel services into their Travel Industry Act trust bank account, including sales made to out-of-province retailers.
“Wholesalers may choose to continue to maintain a separate account for Ontario sales, if that arrangement is preferred,” TICO said.
The background here is that all TICO registrants must maintain a Travel Industry Act trust bank account, as reflected in their record of registration.
All consumer funds for travel services must be deposited into this account and all corresponding supplier payments must be paid out of this account.
Funds in the Travel Industry Act trust bank account cannot be used for operations, such as rent, payroll, utilities, etc.
Previously, TICO registered wholesalers have had to maintain a separate trust account dedicated to sales to Ontario retailers.
Sales made to out-of-province retailers also had to be deposited into a separate bank account.
“We understand from industry that this requirement was at times onerous and costly to implement and maintain,” TICO said, commenting on the new option it has made available.
As a reminder, any changes to banking information must be disclosed to TICO prior to account opening with an Ontario financial institution, as defined in Ontario Regulation 26/05 (click here for the relevant form).
For more information, you can refer to the Trust Accounting Guidelines document here.