Substitution Process and Determination

Substitution Policy

Section 10(1) of the Extractive Sector Transparency Measures Act (the Act) allows the Minister of Natural Resources to determine that the reporting requirements of another jurisdiction are an acceptable substitute for those set out in section 9 of the Act.

The Government will conduct an assessment of whether a jurisdiction’s legislation or other measure:

  • Achieves the purposes of the reporting requirements under the Act (i.e., deter corruption through public transparency)
  • Addresses a similar scope of the reporting requirements in the Act

Once a determination has been issued, a reporting entity may provide the same report that was submitted to a substitutable jurisdiction to meet the reporting obligations under the Act.

The Minister of Natural Resources may impose additional conditions, which would be included in the substitution determination.

Substitution Determination

Assessment of the European Union Accounting and Transparency Directives

  • As of July 31st, 2015, it has been determined that the reporting requirements in the European Union’s (EU’s) Accounting and Transparency Directives meet the purpose of the Government of Canada’s Extractive Sector Transparency Measures Act (ESTMA or “the Act”) and are an acceptable substitute for the requirements set out in section 9.
     
  • Reports submitted to European Union and European Economic Area member-states that have implemented the EU Accounting and Transparency Directives at a national level may be submitted to Natural Resources Canada (NRCan) as a substitute for a report prepared under the Act.
     
  • As a condition to the above substitution determination, the report must be accompanied by the ESTMA reporting template cover page that includes a completed attestation statement.

Substitution Process

To be eligible to use this substitution determination, a reporting entity must be subject to the reporting requirements of the other jurisdiction, and must have provided the report to the other jurisdiction’s competent authority.The substituted report that is submitted for the purposes of the Act must be the exact report that was submitted to the other jurisdiction. The report must be accompanied by an ESTMA cover page and a completed attestation statement.

Additional information may be required if the substitution determination includes additional conditions. To meet additional conditions, reporting entities must submit and publish an ESTMA reporting template containing only the additional information required by the substitution determination for that jurisdiction as an addendum to their substituted report.

Reporting entities must also follow the publication requirements set out in the Act, as per section 12.

Deadline for submitting a substituted report

Should the deadline for filing a report in the other jurisdiction extend beyond 150 days after the end of a reporting entity’s financial year, the reporting entity must notify NRCan within 150 days by email at nrcan.ESTMA_Reports-rapports_LMTSE.rncan@Canada.ca, of its intent to submit a substituted report at a later date. The reporting entity must submit its report to NRCan within the timeframe prescribed by the other jurisdiction.

Should the deadline for filing a report in the other jurisdiction precede 150 days after the end of a reporting entity’s financial year, the reporting entity must submit the substituted report within the deadline set out in Section 9 of the Act.

Steps for submitting a substituted report

  1. Enroll with NRCan and obtain an ESTMA ID number by completing and submitting an ESTMA Contact Form to nrcan.estma_reports-rapports_ltmse.rncan@canada.ca.
     
  2. Complete all fields of the ESTMA reporting template cover page, including the required attestation.

    If the substitution determination includes additional conditions, complete an ESTMA reporting template with only the additional information required by the substitution determination for that jurisdiction.
     
  3. Publish the exact report that was submitted to the substitutable jurisdiction and the completed ESTMA cover page on a publicly accessible website.

    If an ESTMA reporting template was also completed to meet additional conditions in the substitution determination, it must be published along with the substituted report and the ESTMA cover page.

    The report must be provided in either English or French and published in either XLS or PDF to ensure accessibility. The documents must be publicly available online at the same link for at least five years.
     
  4. Send a copy of, and a link to, the documents to: nrcan.ESTMA_reports-rapports_LMTSE.rncan@Canada.ca.

    The email must include the ESTMA ID number of all entities included in the report, the jurisdiction under which the substituted report was originally filed, and the date the report is due based on the other jurisdiction’s legislation.
     
  5. NRCan will then publish the link to the substituted report and cover page on the ESTMA website.

  6. In the event that a published substituted report requires amendments, inform NRCan in detail of any changes to the report, provide an electronic copy of the latest version of the report and ensure that the most up-to-date report is available at the previously provided link.  In addition, the amended report must include a note that identifies the amendment(s).
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