Extractive Sector Transparency Measures Act (S.C. 2014, c. 39, s. 376)

Act current to 2016-11-21 and last amended on 2015-06-01. Previous Versions

Extractive Sector Transparency Measures Act

S.C. 2014, c. 39, s. 376

Assented to 2014-12-16

An Act to implement Canada’s international commitments to participate in the fight against corruption through the imposition of measures applicable to the extractive sector

[Enacted by section 376 of chapter 39 of the Statutes of Canada, 2014, in force June 1, 2015, see SI/2015-43.]

Short Title

Marginal note:Short title

 This Act may be cited as the Extractive Sector Transparency Measures Act.

Interpretation and General Provisions

Marginal note:Definitions

 The following definitions apply in this Act.

category of payment

catégorie de paiement

category of payment means a category of payment set out in any one of paragraphs (a) to (h) of the definition payment. (catégorie de paiement)

commercial development of oil, gas or minerals

exploitation commerciale de pétrole, de gaz ou de minéraux

commercial development of oil, gas or minerals means

  • (a) the exploration or extraction of oil, gas or minerals;

  • (b) the acquisition or holding of a permit, licence, lease or any other authorization to carry out any of the activities referred to in paragraph (a); or

  • (c) any other prescribed activities in relation to oil, gas or minerals. (exploitation commerciale de pétrole, de gaz ou de minéraux)

entity

entité

entity means a corporation or a trust, partnership or other unincorporated organization

  • (a) that is engaged in the commercial development of oil, gas or minerals in Canada or elsewhere; or

  • (b) that controls a corporation or a trust, partnership or other unincorporated organization that is engaged in the commercial development of oil, gas or minerals in Canada or elsewhere. (entité)

gas

gaz

gas means natural gas and includes all substances, other than oil, that are produced in association with natural gas. (gaz)

minerals

minéraux

minerals means all naturally occurring metallic and non-metallic minerals, including coal, salt, quarry and pit material, and all rare and precious minerals and metals. (minéraux)

Minister

ministre

Minister means the member of the Queen’s Privy Council for Canada designated under section 5. (ministre)

oil

pétrole

oil means crude petroleum, bitumen and oil shale. (pétrole)

payee

bénéficiaire

payee means

  • (a) any government in Canada or in a foreign state;

  • (b) a body that is established by two or more governments;

  • (c) any trust, board, commission, corporation or body or authority that is established to exercise or perform, or that exercises or performs, a power, duty or function of government for a government referred to in paragraph (a) or a body referred to in paragraph (b); or

  • (d) any other prescribed payee. (bénéficiaire)

payment

paiement

payment means a payment — whether monetary or in kind — that is made to a payee in relation to the commercial development of oil, gas or minerals and that falls within any of the following categories of payment:

  • (a) taxes, other than consumption taxes and personal income taxes;

  • (b) royalties;

  • (c) fees, including rental fees, entry fees and regulatory charges as well as fees or other consideration for licences, permits or concessions;

  • (d) production entitlements;

  • (e) bonuses, including signature, discovery and production bonuses;

  • (f) dividends other than dividends paid as ordinary shareholders;

  • (g) infrastructure improvement payments; or

  • (h) any other prescribed category of payment. (paiement)

Marginal note:Rules relating to payments

 For the purposes of this Act,

  • (a) a payment that is made to an employee or public office holder of a payee is deemed to have been made to the payee;

  • (b) a payment that is due to a payee and that is received by a body that is not a payee for the payee is deemed to have been made to the payee;

  • (c) a payment that is made by an entity, other than an entity referred to in subsection 8(1), that is controlled by another entity is deemed to have been made by the controlling entity;

  • (d) a payment that is made for an entity is deemed to have been made by the entity; and

  • (e) the value of a payment in kind is the cost to the entity — or, if the cost cannot be determined, the fair market value — of the goods or services that it provided.

Marginal note:Control
  •  (1) Subject to the regulations, an entity is controlled by another entity if it is controlled by the other entity, directly or indirectly, in any manner.

  • Marginal note:Deemed control

    (2) An entity that controls another entity is deemed to control any entity that is controlled, or deemed to be controlled, by the other entity.

Designation

Marginal note:Designation of Minister

 The Governor in Council may, by order, designate a member of the Queen’s Privy Council for Canada as the Minister for the purpose of this Act.

Purpose of Act

Marginal note:Purpose

 The purpose of this 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. Those measures are designed to deter and detect corruption including any forms of corruption under any of sections 119 to 121 and 341 of the Criminal Code and sections 3 and 4 of the Corruption of Foreign Public Officials Act.

Her Majesty

Marginal note:Binding on her Majesty

 This Act is binding on Her Majesty in right of Canada or a province.

Application

Marginal note:Entities
  •  (1) Subject to subsection (2), sections 9 to 13 apply to

    • (a) an entity that is listed on a stock exchange in Canada;

    • (b) an entity that has a place of business in Canada, does business in Canada or has assets in Canada and that, based on its consolidated financial statements, meets at least two of the following conditions for at least one of its two most recent financial years:

      • (i) it has at least $20 million in assets,

      • (ii) it has generated at least $40 million in revenue,

      • (iii) it employs an average of at least 250 employees; and

    • (c) any other prescribed entity.

  • Marginal note:Continuation of obligations

    (2) An entity that ceases to be an entity referred to in subsection (1) before the end of a period referred to in section 12 or 13, as the case may be, continues to be subject to the obligations of that section until the end of the applicable period.

Obligations

Reporting Payments

Marginal note:Annual report
  •  (1) Every entity must, not later than 150 days after the end of each of its financial years, provide the Minister with a report that discloses, in accordance with this section, the payments that it has made during that year.

  • Marginal note:Payments to be disclosed

    (2) Subject to any regulations made under paragraph 23(1)(d), an entity must disclose any payments within a category of payment that are made to the same payee, if the total amount of all those payments during the financial year is at least

    • (a) the amount prescribed by regulation for the category of payment; or

    • (b) if no amount is prescribed for the category, $100,000.

  • Marginal note:Deemed payee

    (3) For the purpose of subsection (2), a payment that is made to a payee referred to in paragraph (c) of the definition payee is deemed to have been made to the government or body for which it is established to exercise or perform, or that for which it exercises or performs, a power, duty or function of government.

  • Marginal note:Attestation

    (4) The report is to include an attestation made by a director or officer of the entity, or an independent auditor or accountant, that the information in the report is true, accurate and complete.

  • Marginal note:Form and manner

    (5) The Minister may specify, in writing, the way in which payments are to be organized or broken down in the report — including on a project basis — and the form and manner in which a report is to be provided. The Minister is to make those requirements available to the public in the manner that he or she considers appropriate.

 
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