The Extractive Sector Transparency Measures Act (ESTMA) was enacted by the Parliament of Canada in December 2014 and came into force on June 1, 2015.
The Act requires businesses to publicly report certain payments they make to all levels of government in Canada and abroad in relation to the commercial development of oil, gas and minerals. The purpose of ESTMA is to deter corruption in the global extractive sector by making government revenues from natural resources transparent to the public. The ESTMA reports need to be made available on publicly accessible websites by reporting businesses and a link to every report submitted will be available on the ESTMA website.
If the Entity has a place of business in Canada, does business in Canada, or has assets in Canada, and meets two (2) of the three (3) following minimum thresholds (“size-related criteria”) in one of its two (2) most recent financial years:
- Has at least C$20 million in assets.
- Generated at least C$40 million in revenue.
- Employs an average of at least 250 employees.
The Company meets the thresholds mentioned above and hence is reporting under the ESTMA Act.