Here is a downloadable info brochure created by PWC to help follow the new act.
The purpose of the Extractive Sector Transparency Measures Act (ESTMA) is to foster better transparency to ensure that the resource extractive industries support proper development in the countries where they operate, while at the same time making it harder to conceal illicit payments. The Act will require affected entities to report any payments made in relation to the commercial development of oil, gas or minerals during a financial year that exceed either the amount prescribed by regulation or, if no amount is prescribed, $100,000 of the following nature and whether monetary or “in kind”:
- taxes, other than consumption taxes and personal income taxes;
- royalties;
- fees, including rental fees, entry fees and regulatory charges as well as fees or other consideration for licences, permits or concessions;
- production entitlements;
- bonuses, including signature, discovery and production bonuses;
- dividends, other than dividends paid as ordinary shareholders;
- infrastructure improvements payments; or
- as otherwise prescribed.
Reportable payments include those paid to all levels of government, domestically and internationally (including Aboriginal entities, subject to a two year delay). The Act will apply to a company in Canada or elsewhere that is involved in the commercial development of oil, gas or minerals and:
- is listed on a stock exchange in Canada; or
- has a place of business, does business or has assets in Canada and, for at least one of its two most recent financial years, meets at least two of the three thresholds below:
- the company has at least $20 million in assets (all currency Canadian);
- the company has at least $40 million in revenue; and/or
- the company employs an average of at least 250 employees