Prime Minister Stephen Harper announced on Wednesday June 12,
that Canada is adopting a G8 initiative requiring disclosure
of payments by Canadian mining and oil and gas companies to foreign
and domestic governments. As a result of this G8 initiative,
citizens in resource-rich countries are expected to gain access to
information to combat any corruption in their extractive sectors
and to demand additional accountability from their governments.
It is expected that the Canadian federal government will consult
with the provinces and territories, First Nations and aboriginal
groups, and industry and civil-society organizations in developing
a framework and setting up a new reporting regime, which would be
enforceable by law. Based on some unofficial preliminary estimates,
it could take up to two years to implement the new regime. Details
relating to how the new regime will be policed and by whom,
disclosure methods and timing, and possible fines and other
penalties for non-compliance will need to be determined.
The announcement is in line with developments in the industry,
which has been working hard on improving transparency. The U.S. and
the European Union have already adopted measures requiring
extractive firms to report taxes, royalties, fees (including
license fees), production entitlements, bonuses, and other material
benefits to governments, with the U.S. rules taking effect recently
and the EU's directive not yet having been fully
In light of the developments, issuers should be aware that they
will need to consider how their legal, audit and IT functions will
need to adapt to the new regime once it is finalized and
implemented. We will continue to monitor and update our clients on
any developments relating to the new regime.
For more information, please contact the author of this
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.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).