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

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Contribution to FICAV Accumulated surplus of FICAV Up to $75 million Up to $100 million More than $100 million Percentage collected from tourist products sold 0.35% (or $3.50 per $1,000 in purchases) 0.20% (or $2.00 per $1,000 in purchases) 0.10% (or $1.00 per $1,000 in purchases) Table 2.2 Did you know that… When adjustments are made to the FICAV contribution percentage, the OPC notifies all travel agents by email. In addition, press releases are sent to the media, in particular newspapers and trade magazines. 2.3.4 What is your role? You must remit the amounts collected from your customers less 5%, which you retain for management fees. If your tourist product sales amount to $5 million or less: • you must make payment twice a year, within 30 days of the end of each six consecutive months (half-year) of your fiscal year. If your tourist product sales amount to $5 million or more: • you must make payment 4 times a year, within 30 days of the end of each quarter (3 consecutive months) of your fiscal year. Don’t be late! The penalty for late payments is the greater of the following two amounts: $50 or 10% of the amount that should have been paid. You may also be subject to penal charges because you are in breach of Regulation. How to make this payment? You must include with your payment a report containing: • the amount of tourist product sales in which the contribution is collected; • the total of contributions paid by customers for FICAV; • the amount sent to the OPC; • the signature of the general agency licence holder or another officer. 2.4 ACCOUNTING 2.4.1 Bookkeeping You respect administrative regulations by entering and updating in your accounting records the following information: • all cash, cheques, credit and debit card payments as well as any other forms of payment received; • all expenditures made from the trust account; • the trust account total balance and, shown separately, the balance for each customer account. Did you know that… An OPC inspector can visit your agency, at any reasonable time, to review any document, book, record or account containing information in connection with business operations. Topic 2 – Administer Funds • Unauthorized reproduction prohibited 23
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. Interim financial statements and trust account statement Table 2.3 Turnover Up to $10 million Between $10 and $20 million More than $20 million Submission deadline No submission Within 45 days after each HALF of the fiscal year 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 Administration of funds Penal liability Compliant Noncompliant First offence Repeated offence Have you notified the OPC of the opening or closing of the trust account? $1,000 to $40,000 $2,000 to $80,000 Did you deposit the money entrusted to you by the customer in a trust account? $2,000 to $100,000 $4,000 to $200,000 Do you withdraw money from the trust account for specific needs of a particular customer? $2,000 to $100,000 $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 24 24 Laws and Regulations Applicable to the Travel Industry: Textbook for Travel Professionals
Page 1 and 2: Laws and Regulations Applicable to
Page 3 and 4: Laws and Regulations Applicable to
Page 5 and 6: SECOND FOREWORD The Office de la pr
Page 7 and 8: TOPIC 3 — OPERATING WITH A LICENC
Page 10 and 11: A WORD FROM THE AUTHORS This Guide
Page 12 and 13: This topic refers more specifically
Page 14: MODULE I OPERATING A TRAVEL AGENCY:
Page 17 and 18: use of part of the income from the
Page 19 and 20: Figure 1 Structure and Responsibili
Page 21 and 22: Did you know that… According to t
Page 23 and 24: Did you know that… It is the Cour
Page 25 and 26: Do you know… How much time the cu
Page 27 and 28: 1.2.4.2 What is the role of the com
Page 30 and 31: ADMINISTER 2FUNDS At the end of thi
Page 32 and 33: You are authorized to withdraw fund
Page 34 and 35: Individual security amount to provi
Page 38 and 39: Check list Administration of funds
Page 40: Answers 1. False. The customer has
Page 43 and 44: Test your knowledge True or False 1
Page 45 and 46: Did you know that… An association
Page 47 and 48: Typical example Specimen: Travel Ag
Page 55 and 56: 3.1.4 Licence renewal Do you contin
Page 57 and 58: The information provided through th
Page 59 and 60: Check list Licence Penal liability
Page 61 and 62: Supplementary readings and exercise
Page 63 and 64: Test your knowledge True or False 1
Page 65 and 66: Did you know that… … your certi
Page 67 and 68: Answers 1. False. Since January 1,
Page 70 and 71: 5 This PUBLICIZE YOUR PRODUCT OR SE
Page 72 and 73: Test your knowledge Based on your c
Page 74 and 75: Example Conviction for failure to c
Page 76 and 77: 5.1.3 Compliant written or printed
Page 78 and 79: Typical example Non-compliant adver
Page 80 and 81: 5.4 PENALTIES AND OFFENCES Clients
Page 82 and 83: DEALING WITH 6CUSTOMERS At the end
Page 84 and 85: What is an obligation of means or a
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According to case law, the liabilit
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To offset various problems that cou
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Now it’s your turn to assess your
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PREPARING THE CUSTOMER’S 7DEPARTU
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7.1 DOCUMENT DELIVERY 7.1.1 Invoice
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Some websites include useful inform
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7.3 PRICE CHANGES Like every kind o
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Example Natural disaster Eruption o
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Checklist Billing Penal liability C
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To conclude the sale in the absence
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APPENDIX
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APPENDIX 1 (con’d)
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APPENDIX 2 (con’d) Travel Counsel
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APPENDIX 3 (con’d) Answers - Exer
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Debtor: Person who is required to f
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Travel agent: A person, partnership
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Laws and Regulations Applicable to
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