Description: Skip the tickets; at least that seems to be the practice of many Canadians and our companies when it comes to paying their fines. So says an investigation by CBC News, one that shows the provinces and the territories are owed $1.3 billion in fines and penalties. The amounts owing include $5 million in fines for a Toronto propane explosion that killed two people 12 years ago, to a Regina resident with $68,000 in parking tickets, and on to someone from Newfoundland and Labrador owing over $72,000 for driving offenses dating back to 1994.
Date: March 11, 2021
1) Have you or any of your classmates ever had a fine? Are they all paid off or could any of your class’s fines be part of the $1.3 billion total?
2) Why do you think some provinces may have downloaded collection of certain fines to the municipalities?
3) Chapter 8 of Wiley’s Financial Accounting: Tools for Business Decision-Making, is titled “Reporting and Analyzing Receivables.” If you were an accounting officer in a province or municipality, what are some strategies you might employ to recover a portion of these outstanding receivables?