Borden Ladner Gervais LLP is pleased to provide you with a guide on Transparency and Reporting Requirements for Canadian Extractive Companies.
A regime for mandatory reporting of payments to governments by participants in the extractive industries came into force in 2015 with the implementation of the Extractive Sector Transparency Measures Act (ESTMA). The implementation of ESTMA fulfilled Canada's G8 commitment to "contribute to global efforts to increase transparency and deter corruption in the extractive sector" through the adoption of reporting requirements broadly aligned with those in the European Union and the United Kingdom, and designed to ensure a level playing field for Canada's extractive companies operating domestically and abroad.
The deadline for filing ESTMA report for issuers with a calendar year end is fast approaching. Reporting entities that are subject to ESTMA must report annually on payments made to any level of government in Canada or abroad relating to the commercial development of oil, gas or minerals for each of their financial years beginning after June 1, 2015. All ESTMA reports must be filed within 150 days following the end of the reporting entity's financial year. For example, a reporting entity whose financial year begins on January 1 must file by May 30, 2017 a report on payments made during the year ended December 31, 2016.
This brochure is designed to provide Canadian entities subject to ESTMA with helpful information about their reporting obligations, implementation tools provided by Natural Resources Canada, and some important legal issues to consider.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
