On June 1, 2015, the Extractive Sector Transparency Measures
Act (the "Act") came into force,
establishing "publish what you pay" standards for
Canadian extractive businesses. As set out in section 6 of the Act,
the purpose of the Act is to "implement Canada's
international commitments to participate in the fight against
corruption through the implementation of measures applicable to the
extractive sector, including measures that enhance transparency and
measures that impose reporting obligations with respect to payments
made by entities." As a result, all businesses engaged in the
commercial development of oil, gas or minerals in Canada or
elsewhere that meet certain criteria1 are required to
report payments such as taxes, royalties, fees, production
entitlements and bonuses of $100,000 or more made to any level of
government in Canada and abroad.
The businesses subject to the Act will be required to provide
annual reports not later than 150 days after the end of each
financial year commencing after July 1, 2015. The Act includes a
two year deferral to June 1, 2017 of the obligation to report
payments made to Aboriginal governments in Canada. In order to
minimize the administrative burden, the Canadian federal government
may permit reporting entities to meet the Canadian reporting
requirements by substituting reports prepared in another
jurisdiction whose requirements are determined to be an acceptable
substitute. Reporting guidelines are expected to be released for
comment later this year.
1.An extractive business is subject to the Act if
(i) is listed on a stock exchange in Canada;
(ii) has a place of business in Canada, does
business in Canada or has assets in Canada and meets at least two
of the following three conditions for at least one of the two most
recent financial years:
(a) has at least
$20 million in assets;
(b) generates at
least $40 million in revenue; and
(c) employs an
average of at least 250 employees.
The foregoing provides only an overview and does not
constitute legal advice. Readers are cautioned against making any
decisions based on this material alone. Rather, specific legal
advice should be obtained.
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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