Transparency Requirements Proposed For Payments By Canada's Extractive Industry

In the face of a global trend for greater corporate transparency, the Government of Canada recently introduced its long-promised legislation to establish mandatory reporting standards for payments that Canadian extractive companies make to governments worldwide. Click here to read our  January 22, 2014 and  June 12, 2013 publications on this topic. Click  here to read the full Extractive Sector Transparency Measures Act.

The Extractive Sector Transparency Measures Act (the "Act") will apply to oil, gas and mining companies that are listed on a Canadian stock exchange, as well as to private companies operating in Canada that meet at least two of the following criteria: $20 million in assets; $40 million in revenue; or 250 employees. Entities subject to the Act will be required to file an annual public report disclosing any payments to governments in excess of $100,000 (or an amount otherwise prescribed by regulation). Payments will include taxes, royalties,