New obligation on the extractive industries to
disclose payments to Government entities.
UK companies in the extractives industries must provide
Companies House with a report on the payments they have made to
Government entities for any financial year starting after 1 January
2015. Directors of a defaulting company may be liable to an
unlimited fine and/or a prison sentence of up to two years.
The report must detail:
- Which countries received
payments
- The amount paid to each
government
- The type of payments made –
that is, taxes, royalties, bonus, licence fee, production
entitlements, or dividends
- A breakdown of payments by
project
This requirement has arisen because of the publication by the
Department for Business Innovation & Skills
(BIS) of its response to consultation in relation
to the UK implementation of the EU Accounting Directive's
Chapter 10, which relates to extractives industry reporting.
