On June 1, 2015, the federal government declared into force the
Extractive Sector Transparency Measures Act. This Act is the
long-promised legislation to establish mandatory reporting
standards for payments that Canadian extractive companies make to
governments worldwide (commonly known as "publish what you
Extractive companies subject to the Act are required to report
payments (including taxes, royalties, fees and production
entitlements of $100,000 or more) to all levels of government in
Canada and abroad, subject to two transitional periods. First, the
Act will require reporting with respect to payments made in fiscal
years commencing after July 1, 2015. Second, the Act defers
reporting on payments made by reporting entities to Aboriginal
governments in Canada until after June 1, 2017.
The Act allows for the substitution of the federal
government's payment reporting requirements with those of
another jurisdiction. This equivalency clause is also found in the
European Union rule that requires reporting for payments made in
2016. The equivalency clause aims to minimize the administrative
burden that could result from multiple reporting obligations.
Common reporting formats are expected for Canada, the United
States and the European Union to further harmonize mandatory
reporting standards. However, the U.S. Securities and Exchange
Commission (SEC) rules on "publish what you pay"
standards promulgated under the Dodd-Frank Act were overturned in
2013 and the SEC suggests that new rules may not be introduced
Although there were initial discussions regarding the Ontario
Securities Commission and other provincial securities regulators
administering this transparency regime, there are no current plans
for such involvement. Instead, Natural Resources Canada is
developing a reporting template and guidelines in conjunction with
a multi-stakeholder working group, which includes industry
representatives and Aboriginal groups. These tools will be released
for public comment later this year.
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.
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