Supplier Refunds on CC - Total Amount must be transferred to GTN Client Account
It is crucial that the total refund amount received from a supplier is returned to the GTN Client Account, any refunds are then paid out to the client, with the remaining claimed as commission.
You can click below to see how to correctly set it up in VTO
THE LEGAL WHY
I allow you the perk of being able to accrue frequent flyer and/or rewards points, I do this trusting that you will all do the right thing, and won't in turn deliberately hide funds, while getting Global Travel admin to process payments for you, resulting in a direct business loss.
Keeping funds is both a breach of your agreement with Global Travel Network and a breach of trust and ethical conduct. It also has the potential to have incredibly serious legal implications for yourself, your business and Global Travel Network.
As part of our auditing and company registrations with the ASIC, ATO, ATIA & ATAS have a variety of legal requirements that keeping funds breach:
Complying with the ASIC Client Money Reporting Rules 2017
Misappropriation of Client & Company Funds (Fraud, Theft & Embezzlement) for financial gain
Taking, keeping or using client or business funds for personal purposes is considered misappropriation, a form of theft.It is a Tax Crime to hide funds that manipulate business revenue and avoid tax
It can also be classified as Expense Fraud if amounts are false and profit isn't declared
Financial Statement Fraud: falsifying financial records to hide losses, inflate revenues, or gain unauthorised incentives.
If I (Kate) let it happen it could be a breach of my Statutory Financial Reporting & Record Keeping duties as a Company Director which could be a criminal charge if it it a significant amount or ongoing practice
ATIA & ATAS Financial Obligations and Charter required to maintain registration
Yourself, your business, along with myself Global Travel Network could lose accreditations, or be disqualified from operating, impacting everyone that operates their businesses with GTN.
Example: The misappropriation of client funds for financial gain is a serious and inexcusable abuse of their position and a breach of trust. The seriousness and systemic conduct, plus the failure to manage their tax obligations, demonstrated a lack of integrity and a disregard of the tax laws.
As a result, both the company and the individual agent registrations were terminated with a maximum 5-year ban from re-applying imposed.
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