Oil and gas companies and mining companies operating in Canada soon may be required to publish annual reports detailing tax and other payments they make to all levels of domestic and foreign governments.
These new reporting standards, once effective, would require significant systems and process changes to track reportable payments.
Legislation to enact these requirements was tabled in the House of Commons on 23 October 2014 as the Extractive Sector Transparency Measures Act. It is anticipated that these provisions will be enacted into law shortly.
The legislation does not list all expected information about how and when companies would comply with their reporting requirements or fully address the issues raised in consultation meetings with the industry. More details may follow in the form of regulations and guidance published by the government.
For example, the legislation does not indicate when companies would be required to start the reporting, though the government has previously stated that it intends to implement these rules by April 2015.
Read a November 2014 report prepared by the KPMG member firm in Canada: Resource Companies — Get Ready for Showtime
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