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ESTMA updated implementation tools now available

April 10, 2018 – Recognizing the importance of continued engagement as a key component of the effective administration and enforcement of the Extractive Sector Transparency Measures Act (ESTMA), Natural Resources Canada (NRCan) has solicited stakeholder input on challenges and lessons learned from the first reporting cycle through a series of in-person and remote outreach sessions, bilateral meetings and a voluntary e-questionnaire completed in June 2017.

In addition, NRCan has established a stakeholder advisory group comprised of industry, civil society and government representatives to ensure structured and collaborative dialogue with key stakeholders when discussing future policies, guidance, and reporting tools.

As a result of feedback received from stakeholders, NRCan has developed, with key input from the Stakeholder Advisory Group, four new implementation tools:

• A new and improved reporting template;
• An updated version of the ESTMA Guidance;
• New guidance on Reporting Payments to Indigenous Payees in Canada; and
• An updated version of the Validation Checklist.

New reporting template
The template has been redesigned with a view to simplifying reporting. A data entry tab has been added as the first page of the reporting template, allowing reporting entities to complete mandatory fields in one location and having the information automatically populated in subsequent pages. In addition, new fields for required information, such as report currency and exchange rates, have also been added to align with the Report Validation Checklist.

While reporting entities are encouraged to begin using the new reporting template immediately, NRCan will accept reports for the 2017 reporting period submitted using the original reporting template.

New version of guidance
The guidance has been edited for clarity and includes new illustrative examples provided by stakeholder representatives to further assist entities in understanding the reporting requirements under the Act.

New additions and amendments include:

• Additional context on reportable and non-reportable taxes;
• Information on payments for goods and services and overcharging;
• Additional information on reporting payments in kind;
• Information on when social payments may be reportable; and,
• Considerations for reporting in situations of joint ventures and in situations of joint control.

New guidance on Reporting Payments to Indigenous Payees in Canada
An information sheet on Reporting Payments to Indigenous Payees in Canada has been prepared, which includes examples of Indigenous Payees, key reporting considerations and illustrative examples.

New version of the Validation Checklist 
The revised version includes additional direction on linking to landing pages, as well general revisions to language for clarity. In addition, the mock report provided as “Annex A” of the Validation Checklist was amended based on feedback received from stakeholders.

The updated implementation tools will be available on the ESTMA website shortly. In the meantime, the documents may be accessed at this link: \ftp.nrcan.gc.caoutgoingESTMA-LMTSEESTMA-Documents-LMTSE.zip.

Please note that guidance provided by NRCan is intended to provide illustrative examples and considerations for reporting under the ESTMA. These examples are not exhaustive. In addition, entities are responsible for ensuring compliance in light off the facts and circumstances of their operations. For the purposes of interpreting and applying the law, users are invited to consult the official version of the Act as well as the Technical Reporting Specifications available at the ESTMA website.

NRCan officials remain available to discuss any specific questions related to this information, or more broadly on how to report under the Act. Please send your written questions or request for a call/meeting to: nrcan.estma-lmtse.rncan@canada.ca