Time to File TICO Financial Statements

TICO reminds registrants with year-ends on or after 01DEC 2024 and gross sales of $2 million or more, to file their annual financial statements with the Ontario registrar.

During the COVID-19 pandemic, the Ontario government temporarily exempted these businesses from filing to ease their burden. However, as announced in March 2024, this exemption will end on 01DEC.

TICO issued the following outline of expectations:

December 1, 2024: Expiry of the temporary exemption from filing annual financial statements for registrants with Ontario Gross Sales of $2 million or greater.

For a period of four years, from December 1, 2020 to November 30, 2024, registrants with Ontario Gross Sales of $2 million or greater were only required to file a Verification Statement (a self-attestation of financial position), subject to a limited exception. All registrants who fall in this category will have benefited up to four times from the temporary exemption.

Registrants with Ontario Gross Sales of $2 million or greater whose year-end is on or before November 30, 2024 can still submit a Verification Statement for this year-end cycle. If a registrant is required to prepare an annual financial statement with a Review Engagement Report or Audit Opinion for any other purpose outside of TIA, it is still required to provide this report to TICO.

Registrants with Ontario Gross Sales of $2 million or greater whose year-end is on or after December 1, 2024 will be required to submit to TICO annual financial statements with a Review Engagement Report or an Audit Opinion, as the registrant prefers.

Permanent burden reduction changes (implemented in 2020):

Registrants whose Ontario Gross Sales are less than $2 million can choose to continue to submit a Verification Statement, as this was a permanent change as of March 30, 2020. This permanent change benefits approximately 70% of TICO’s registrants.

Registrants whose Ontario Gross Sales are $10 million or greater are not required to submit an Audit Opinion and instead have the option to submit a Review Engagement Report, as this was a permanent change as of March 30, 2020.

Please see the table below for a summary of financial filing requirements:

Registrant’s Ontario Gross Sales during the previous fiscal year	Annual financial documents required and time limitations	Other financial documents required
Less than $2 million	Required: Verification Statement	N/A
$2 million to less than $10 million	For registrants with year-ends on or before November 30, 2024 Required: Verification Statement A Review Engagement Report or Audit Opinion are only required to be submitted to TICO if already being completed for any other purpose. For registrants with year-ends on or after December 1, 2024 Required: Review Engagement Report or Audit Opinion, as the registrant prefers.	N/A
$10 million to less than $20 million	For registrants with year-ends on or before November 30, 2024 Required: Verification Statement A Review Engagement Report or Audit Opinion are only required to be submitted to TICO if already being completed for any other purpose. For registrants with year-ends on or after December 1, 2024 Required: Review Engagement Report or Audit Opinion, as the registrant prefers.	For travel agencies: semi-annual statements For travel wholesalers: quarterly financial statements For registrants who are both travel agencies and travel wholesalers: quarterly financial statements.
$20 million or greater	For registrants with year-ends on or before November 30, 2024 Required: Verification Statement A Review Engagement Report or Audit Opinion are only required to be submitted to TICO if already being completed for any other purpose. For registrants with year-ends on or after December 1, 2024 Required: Review Engagement Report or Audit Opinion, as the registrant prefers.	Quarterly financial statements

Why is the option to submit a Verification Statement expiring for registrants with Ontario Gross Sales of $2 million or greater?

The regulatory amendment that allowed registrants with Ontario Gross Sales of $2 million or greater to submit a Verification Statement was time-limited, with a view to reduce burden and cost as a result of the pandemic’s significant impacts on the sector.

As consumer demand for travel has recovered to pre-pandemic levels, it’s important for TICO to receive comprehensive financial information from larger registrants to help ensure consumers are protected.

Questions?

Any questions can be directed to tico@tico.ca or 1-888-451-TICO (8426).