Extractive Sector Transparency Act
Encana is required to comply with Extractive Sector Transparency Act (ESTMA) which was enacted by the Government of Canada. ESTMA requires extractive entities active in Canada to publicly disclose, on an annual basis, specific payments made to governments in Canada and abroad. Encana’s report, which has been prepared in accordance with ESTMA, is below:
U.K. Tax Disclosure
In accordance with the tax laws of the United Kingdom, multinational companies with a U.K. presence and consolidated assets in excess of £2 billon must provide certain tax information relating to the governance of tax risks in respect of its U.K. activities.
Encana Corporation is a taxable Canadian company, with a December 31 fiscal year end, and its common shares are listed on the Toronto and New York stock exchanges.
Encana (U.K.) Holdings Limited is a directly held, wholly owned subsidiary of Encana Corporation and it became an inactive company following the 2004 sale of its operating subsidiary, Encana U.K. Limited. Encana (U.K.) Holdings Limited is in the process of being liquidated.
Encana Corporation’s tax strategy in respect of Encana (U.K.) Holdings Limited is to timely comply with its remaining tax filing obligations associated with the final liquidation of the subsidiary company. Encana Corporation and its U.K. subsidiary will cooperate with Her Majesty’s Revenue and Customs and provide information and documentation requested by the U.K. tax authorities to ensure compliance with its remaining U.K. filing obligations.