The Extractive Sector Transparency Measures Act (“ESTMA”) establishes annual reporting and transparency requirements for the Canadian extractive sector. The legislation is intended to enhance transparency and accountability by requiring oil, gas, and mining companies to disclose certain payments made to domestic and foreign governments in connection with the commercial development of natural resources.
Under ESTMA, companies must report payments exceeding CDN $100,000 made to all levels of government, including Indigenous governments, as defined by the legislation. Reportable payments include royalties, taxes (other than consumption and personal income taxes), fees, production entitlements, bonuses, dividends (other than ordinary shareholder dividends), infrastructure improvement payments, and other prescribed categories.