Licence Appeal Tribunal
Appeal d'appel en matière de permis
FILE: 10424/TIA
CASE NAME: 10424 v. Registrar, Travel Industry Act, 2002
Appeal of a Proposal of the Registrar under the Travel Industry Act, 2002, S.O. 2002, c. 30, Sch. D to Revoke Registration
Tourista Travel Inc./Voyage Tourista Inc. o/a Grad Escapes Appellant
-and-
Registrar, Travel Industry Act, 2002 Respondent
CONSENT ORDER
Upon the application to the Tribunal by Tourista Travel Inc./Voyage Tourista Inc. o/a Grad Escapes, and the Registrar, under the Travel Industry Act, 2002 for issuance of a Consent Order of the Tribunal without a hearing pursuant to section 4.1 of the Statutory Powers Procedure Act, R.S.O. 1990, c. S.22; and
Having reviewed the minutes of settlement signed by the Appellant and the Registrar, Travel Industry Act, 2002, as to the disposition of these proceedings which is filed and attached hereto as Schedule “A”;
NOW THEREFORE, upon the consent of the parties, this Tribunal orders that the proceedings in this matter are concluded and disposed of without a hearing based on the terms set out in the said Schedule “A”, which are incorporated into and made part of this Order.
LICENCE APPEAL TRIBUNAL
Marisa Victor, Member
Released: May 15, 2017
SCHEDULE "A"
Licence Appeal Tribunal
TOURISTA TRAVEL INC./VOYAGE TOURISTA INC. o/a GRAD ESCAPES Applicant
AND
REGISTRAR, TRAVEL INDUSTRY ACT, 2002 Respondent
MINUTES OF SETTLEMENT
WHEREAS Tourista Travel Inc./Voyage Tourista Inc. o/a Grad Escapes located at 349 McLeod Street, Unit 424, Ottawa, ON K2P 0S1,, is a travel agent (Registration No. 50021106) registered on November 14, 2013, under the Travel Industry Act, 2002 ("the Act") and Ontario Regulation 26/05 made under the Act (the “Regulation”);
AND WHEREAS the Registrar issued the Notice of Proposal to Revoke Registration against Tourista Travel Inc./Voyage Tourista Inc. o/a Grad Escapes on June 10, 2016, alleging Tourista Travel Inc./Voyage Tourista Inc. o/a Grad Escapes is and has been carrying on activities that are in contravention of the Act and the Regulation;
AND WHEREAS Tourista Travel Inc./Voyage Tourista Inc. o/a Grad Escapes appealed the NOP to the Licence Appeal Tribunal;
AND WHEREAS the parties agreed to settle outstanding issues on the following terms and conditions:
Previous history
- Tourista Travel Inc./Voyage Tourista Inc. o/a Grad Escapes (the Registrant) has had previous administrative actions related to compliance issues, as follows:
a. Notice of Proposal to Revoke Registration was issued against the Registrant on December 19, 2014 (NOP 2014) for failure to file financial statements for August 31, 2014 year end. The financial statements were ultimately filed and the Notice of Proposal withdrawn and the proceeding terminated, pursuant to the Registrant’s compliance. The letter confirming the withdrawal dated April 16, 2015 reminded the Registrant of its obligations with respect to regulatory compliance under the Act and the Regulation.
b. The Registrant failed to file financial statements for the year ended August 31, 2015 within the timeframe mandated by the Act and the Regulation. As a result, a Notice of Proposal to Revoke Registration dated June 10, 2016 was issued (NOP 2016), and was appealed by the Registrant. After the NOP 2016 was issued, the Registrant did file the financial statements. Subsequently, additional compliance issues were revealed. Some of those issues were previously raised in the NOP 2014. The Registrant ultimately remedied these newly noted compliance issues.
- The Registrar has taken into account the following considerations:
a. The Registrant has addressed the outstanding issues, and provided an explanation for the issue raised in para. 6 of the NOP 2016, which was accepted by TICO;
b. The Registrant has provided a reasonable explanation for the delay in filing financial statements and explained the miscommunication relating to the issue raised in paragraph 3.a) of the NOP 2016;
c. The Registrant has cooperated with TICO;
d. The principal of the Registrant undertook, on behalf of the Registrant, to “meet and exceed” the obligations under the Act and the Regulation.
- As a result, after careful review of the factors noted above, the Registrar agrees to resolve this matter without a Hearing on the basis that the Registrant shall comply with the following terms and conditions, pursuant to the obligations of all Registrants under the Travel Industry Act and the Regulation, not all of which are issues raised in the NOP 2016.
Terms and Conditions
The parties consent to an Order of the Licence Appeal Tribunal which shall incorporate these Minutes of Settlement and disposing of these proceedings without a hearing.
The Registrant accepts the fact and events alleged in the NOP as proven, except as otherwise stated herein, with the exception of paragraph 4.a. of the NOP 2016), and undertakes the following steps to resolve the issues outlined in the NOP 2016.
The Registrant must maintain its trust account in accordance with the Act and the Regulation and Trust Accounting Guidelines.
The Registrant must have proper audit trail where the customer funds received are cross-referenced with the invoice issued.
The Registrant must ensure that only payments for travel services that constitute a Gross Ontario Sale are deposited to the trust account.
The Registrant must issue invoice every time it sells travel services to its customers, as prescribed by section 38 of the Regulation. For more information, or should the Registrant have questions, the Registrant may refer to the TICO Guidelines with respect to Disclosure and Invoicing Requirements for assistance.
The parties acknowledge that TICO may, pursuant to section 17 of the Act and at its discretion, schedule inspections of the Registrant in order to ensure ongoing compliance with the Act and the Regulation.
The Registrant shall file its Form 1 Contribution payments in the following manner:
o Fiscal year end contribution to the Ontario Travel Industry Compensation Fund (the Fund) is due three months after the year-end. Based on the Registrant’s current year end of August 31, the fiscal year end contributions are due on November 30 of each year;
o Half year (6 months) contribution to the Fund is due three months after the half-year period end. Based on the current year end, the half year (6 months) contribution is due May 31 of each year;
The Registrant and the principal of the Registrant, are responsible for the actions of all counsellors employed by the Registrant and persons on contract who are selling or providing advice, regarding the sale of travel services, including employees and/or contractors who are acting as "outside sales representatives" or "outside sales counsellors."
The Registrant and the principal of the Registrant, are responsible to ensure that all such sellers of travel services and/or counsellors and/or contractors meet the TICO Education Standards as required by the Regulation 26/05, section 12.
The Registrant and the principal of the Registrant, are responsible to ensure that all sellers of travel services and/or counsellors and/or contractors, comply with all aspects of the Regulation 26/05, and specifically sections 27, 31 to 40 and section 44, in respect of disclosure, invoicing, receipt of monies and advertising.
The Registrant shall file any and all annual financial statements for each fiscal year prepared by a public accountant licensed under the Public Accountancy Act, 2004 and accompanied by a Review Engagement Report or an Audit Opinion as required by the Regulation within 3 months after the end of the fiscal year.
Each and every annual financial statement filed with TICO shall disclose the trust position at the end of the year. The statement with respect to the trust position shall include the balance in the Travel Industry Act Trust Account at the year end, customer deposits liability, plus any other balances that are included in the trust position. If the customer deposits are nil at the year end, then it must be disclosed as such.
The Registrant shall advise TICO of changes outlined in sections 16 and 17 of the Regulation within the time prescribed in those sections.
The Registrant shall, at all times, maintain the minimum working capital as required by section 24 of the Regulation. If based on the financial statements submitted by the Registrant, the Registrar concludes that the working capital of the Registrant is not in compliance with s. 24 of the Regulation, the Registrant shall take the necessary steps to correct its working capital position and submit proof thereof within a deadline provided by the Registrar, which shall not be less than two weeks.
The shareholders of the Registrant shall ensure that loans and/or advances to Tourista Travel Inc./Voyage Tourista Inc. o/a Grad Escapes will not be withdrawn until such time as it can be done without reducing working capital below the minimum amount required by the Act and the Regulation.
In the event Tourista Travel Inc./Voyage Tourista Inc. o/a Grad Escapes intends to cease selling travel services, it should advise the Registrar immediately but not less than 10 days prior to such event. In addition, any claims against the Ontario Travel Industry Compensation Fund arising out of ceasing to sell travel services, are to be fully satisfied before shareholder loans can be repaid.
The Registrant understands that should fail to comply with any of the above noted terms and conditions or any other provision of the Act or Regulation, its previous non-compliance history will be taken into consideration and the Registrar will issue another Notice of Proposal to Revoke Registration without further notice.
Tourista Travel Inc./Voyage Tourista Inc. o/a Grad Escapes and the undersigned, acknowledge that we have read, understand and will comply with the terms of these Minutes of Settlement.
Tourista Travel Inc./Voyage Tourista Inc. o/a Grad Escapes further acknowledges that it has obtained or has had full opportunity to obtain independent legal advice with respect to the terms of these Minutes of Settlement and their legal effect and impact and further undertakes to comply with them.
SIGNED THIS 1st DAY OF May, 2017
Mr. Adam Mattina, President
Richard Smart, Registrar, Travel Industry Act, 2002
Tourista Travel Inc./Voyage Tourista Inc. o/a Grad Escapes I have the authority to bind the corporation
Travel Industry Council of Ontario