Oil, gas and mining companies operating in the United States, Canada, and the European Union required to file annual transparency reports may be able to use that same report to meet the U.S., Canadian, and EU requirements.
The U.S. Securities and Exchange Commission (SEC) in June 2016 announced rules had been adopted to require resource extraction issuers to disclose payments—including taxes—made to governments for the commercial development of oil, natural gas or minerals. Read TaxNewsFlash-United States
Earlier this year, the Canadian government announced that oil and gas companies and mining companies operating in Canada must also comply under a new regime—the Extractive Sector Transparency Measures Act (ESTMA)—requiring them to report annually tax and other payments made to Canadian and foreign government. Read TaxNewsFlash-Americas
The SEC transparency reporting requirements are similar to Canada’s ESTMA regime. In its June 2016 announcement of the new reporting regime, the SEC indicated that reports prepared to meet the Canadian ESTMA rules and the EU Accounting and Transparency Directives would also comply with the new U.S. transparency reporting requirements, subject to certain conditions.
As a result, affected resource companies that would be subject to both the ESTMA and SEC transparency regimes may not have to prepare separate reports for each jurisdiction.
Read a July 2016 report prepared by the KPMG member firm in Canada: U.S. to Accept Canadian Resource Transparency Reports
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