Laws and Regulations Applicable to the Travel Industry - Institut de ...

You must be able to show your books, registers and accounts for each
establishment located in Québec. Table 2.3 shows the date for submitting
financial statements based on your turnover.
TABLE
Represents the information
succinctly, in tabular form.
Table 2.3
Interim financial statements and trust account statement
Turnover
Submission deadline
Up to $10 million
No submission
Between $10 and $20 million Within 45 days after each HALF of the fiscal year
More than $20 million Within 45 days after each QUARTER of the fiscal year
2.5 PENALTIES AND VIOLATIONS
The Travel Agents Act and Regulations provide for fines in the case of
specific violations. Your penal liability consists of a penalty provided
under the terms and standards prescribed by law. The following checklist
allows you to assess your level of compliance and fines for which you
could be liable. Refer to the content of this topic to help you remember.
Check list
TEST YOURSELF
Rates your level of proficiency
on selected topics
Administration of funds
Penal liability
Compliant
Have you notified the OPC of
the opening or closing of the
trust account?
Did you deposit the money
entrusted to you by the customer
in a trust account?
Do you withdraw money from
the trust account for specific
needs of a particular customer?
Noncompliant
First
offence
$1,000 to
$40,000
$2,000 to
$100,000
$2,000 to
$100,000
Repeated
offence
$2,000 to
$80,000
$4,000 to
$200,000
$4,000 to
$200,000
Do you withdraw money solely
by cheque, transfer or bank
transfer from the trust account?
$2,000 to
$100,000
$4,000 to
$200,000
Do you withdraw money from
the trust account without
exceeding the amounts provided
by your customer?
$2,000 to
$100,000
$4,000 to
$200,000
By satisfying all of these responsibilities and obligations, your customers
are assured of doing business with a reliable travel agent. Once you comply
with the requirements of this topic, you are ready to move onward in the
process for obtaining a travel agency operating licence.
It is now up to you to evaluate your level of knowledge of this topic.
24 24 Laws and Regulations Applicable to the Travel Industry: Textbook for Travel Professionals
Test yourself
After reading this topic,
I am able to
1. define the individual security, a trust account,
and the Compensation Fund for Customers of
Travel Agents (FICAV).
2. understand the purpose of the various funds
administered by a travel agent.
3. know how much the individual security should
be and how to provide it.
4. determine the contribution amount payable
to FICAV.
5. present my accounting records.
6. know the penalties for certain offences
from failing to respect the Law.
Total
Totally Partially Minimally
CHECKLIST
Validates the compliance level
of your work practices
Keep working! Review this topic or go to the next one.
ANSWERS
“Test your knowledge” answer key
Answers
1. False. The customer has done business with a travel agent
26 26 Laws and Regulations Applicable to the Travel Industry: working Textbook in Québec for Travel holding Professionals
a travel agent licence. She is therefore
protected by the surety. If the surety amount is inadequate,
Mrs. Fairbrother will be reimbursed or compensated by
FICAV. s. 28, T.A.R
2. False. The counsellor does not hold a travel agent`s licence
and is therefore not responsible. The licencee is required to
provide an individual security. This security makes it possible
to reimburse the amounts collected for tourist products and
services that were not provided to the customer. s. 28, T.A.R
3. True. The law provides that FICAV must be used to compensate
or reimburse Mrs. Fairbrother, should the Fancyfree Agency Inc.
individual security be exhausted. s. 37, T.A.R
4. False. The regulations specify that the trust account must be
used exclusively to administer accounts paid by customers. The
Fancyfree Agency Inc. revenues are deposited in a current account
at the bank. s. 33 T.A.A. and s. 23 T.A.R
5. False. In spite of the fact that the security ends with the travel
agency closing, the security remains available to compensate
customers for a period of 3 years. s. 33 T.A.R
6. False. A travel agent is not authorized to withdraw his commission
amount until after the suppliers have been paid. s. 23 e T.A.R
Result : /6
Supplementary readings and exercises
• Must the FICAV contribution be collected for the sale of a cruise
to a couple from Ontario?
Answer: sec. 38, T.A.R.
• How should the money collected as part of the sale of a tourist product
or service be administered?
Answer: sec. 33, T.A.A and sec. 20, T.A.R.
• In the context of the T.A.R., define the term “fund”?
Answer: sec. 21, T.A.R.
• How should you answer a travel agent who says “FICAV administration
adds business expenses.”
True or false? Explain your answer.
Answer: sec. 40, T.A.R.
• Do you have to have the amount required for the personal security
in cash? Justify your answer.
Answer: sec. 30, T.A.R.
• What are the powers of the provisional administrator with respect
to using the funds held in trust?
Answer: sec. 14.3, T.A.A.
SUPPLEMENTARY READINGS
AND EXERCISES
Completes and further enhances
your knowledge of covered topics
ITALICS
Refers to a specific section
of an act or regulation
Topic 2 – Administer Funds • Unauthorized reproduction prohibited 27
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Laws and Regulations Applicable to the Travel Industry: Textbook for Travel Professionals