The Reports on Payments to Governments Regulations 2014

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InterpretationU.K.

This section has no associated Explanatory Memorandum

2.—(1) In these Regulations—

“the Act” means the Companies Act 2006;

“affiliated undertakings” means any two or more undertakings within a group;

“Companies Act accounts” has the meaning given by sections 395(1)(a) and 403(2)(a) of the Act;

“consolidated report” has the meaning given in regulation 8;

F1...

“director” means—

(a)

in relation to a company—

(i)

a director of the company, and any person occupying in relation to it the position of a director (by whatever name called), and

(ii)

any person in accordance with whose directions or instructions (not being advice given in a professional capacity) the directors of the company are accustomed to act;

(b)

in relation to a limited liability partnership, a member;

(c)

in relation to a limited partnership, a general partner; and

(d)

in relation to a partnership, a partner;

“electronic means” has the meaning given in section 1168 of the Act;

[F2“equivalent reporting requirements” are reporting requirements in any country or territory outside the United Kingdom that—

(a)

are equivalent to the reporting requirements in these Regulations, by virtue of regulation 12ZA(1); or

(b)

are determined by the Secretary of State to be equivalent to the reporting requirements in these Regulations, in accordance with regulation 12ZA;]

“general partner” has the same meaning as in the Limited Partnerships Act 1907 M1;

“government” means any national, regional or local authority of a country, and includes a department, agency or undertaking that is a subsidiary undertaking where the authority is the parent undertaking;

“group” means a parent undertaking and all its subsidiary undertakings;

“IAS accounts” has the meaning given in sections 395(1)(b) and 403(1) and (2)(b) of the Act;

“large undertaking” means an undertaking that meets at least two of the three following criteria—

(a)

its balance sheet total on its balance sheet date exceeds £18 million;

(b)

its net turnover on its balance sheet date exceeds £36 million;

(c)

the average number of employees during the financial year to which the balance sheet relates exceeds 250;

“limited partnership” means a partnership formed in accordance with the Limited Partnerships Act 1907;

[F3“logging undertaking” means an undertaking which undertakes in primary forests the activity referred to in the UK Standard Industrial Classification (SIC) by Economic Activity, as set out in Table 1 in the Schedule to these Regulations, issued under section 9 of the Statistics and Registration Services Act 2007 as updated from time to time;]

[F4“mining or quarrying undertaking” means an undertaking which performs any activity involving the exploration, prospection, discovery, development, and extraction of minerals, oil, natural gas deposits or other materials within the activities referred to in the UK Standard Industrial Classification (SIC) by Economic Activity, as set out in Table 2 in the Schedule to these Regulations, issued under section 9 of the Statistics and Registration Services Act 2007 as updated from time to time;]

“net turnover” means the amounts derived from the sale of products and the provision of services after deducting sales rebates and value added tax and other taxes directly linked to turnover;

“parent undertaking” has the meaning given in the ActF5...;

“partnership” means a partnership within the Partnership Act 1890 M2;

“payment” means an amount paid, whether in money or in kind, for relevant activities, where the payment is any of the following types—

(a)

production entitlements;

(b)

taxes levied on the income, production or profits of companies, excluding taxes levied on consumption such as value added taxes, personal income taxes or sales taxes;

(c)

royalties;

(d)

dividends, other than dividends paid by an undertaking to a government as an ordinary shareholder of that undertaking, where—

(i)

the dividend is paid to the government on the same terms as to other ordinary shareholders, and

(ii)

the dividend is not paid in lieu of production entitlements or royalties;

(e)

signature, discovery and production bonuses;

(f)

licence fees, rental fees, entry fees and other considerations for licences or concessions; or

(g)

payments for infrastructure improvements;

“primary forest” means a forest of native species, where there is no clearly visible indication of human activities and the ecological processes are not significantly disturbed;

“project” means the operational activities which—

(a)

are governed by a single contract, licence, lease, concession or similar legal agreement, and

(b)

form the basis for payment liabilities with a government;

[F6“public interest entity” means an undertaking—

(a)

whose transferable securities are admitted to trading on a UK regulated market;

(b)

which is a credit institution within the meaning given by Article 4(1)(1) of Regulation (EU) No. 575/2013 of the European Parliament and of the Council, and a CRR firm within the meaning of Article 4(1)(2A) of that Regulation;

(c)

which would be an insurance undertaking within the meaning of Article 2(1) of Council Directive 91/674/EEC of 19th December 1991 on the annual accounts of insurance undertakings were the United Kingdom a member State;]

“the registrar” has the meaning given in section 1060 of the Act;

“relevant activities” means—

(a)

the activity as set out in Table 1 in the Schedule to these Regulations within primary forests; or

(b)

any activity involving the exploration, prospection, discovery, development, and extraction of minerals, oil, natural gas deposits or other materials, within the activities listed in Table 2 in the Schedule to these Regulations;

“report” has the meaning given in regulation 4;

“subsidiary undertaking” has the meaning given in the ActF7...;

[F8“transferable securities” has the meaning given by section 1173 of the Act;]

[F8“UK regulated market” has the meaning given by section 1173 of the Act;]

[F9“UK undertaking” means—]

(a)

a limited company;

(b)

a limited liability partnership;

(c)

a limited partnership, each of whose general partners is—

(i)

a limited company,

(ii)

an unlimited company, each of whose members is a limited company,

(iii)

a Scottish partnership which is not a limited partnership, each of whose members is a limited company, or

(iv)

a Scottish partnership which is a limited partnership, each of whose general partners is a limited company;

(d)

a partnership, each of whose partners is—

(i)

a limited company,

(ii)

an unlimited company each of whose members is a limited company,

(iii)

a Scottish partnership which is not a limited partnership, each of whose members is a limited company, or

(iv)

a Scottish partnership which is a limited partnership, each of whose general partners is a limited company;

(e)

an unlimited company, each of whose members is—

(i)

a limited company,

(ii)

an unlimited company each of whose members is a limited company,

(iii)

a Scottish partnership which is not a limited partnership, each of whose members is a limited company, or

(iv)

a Scottish partnership which is a limited partnership, each of whose general partners is a limited company;

[F10“undertaking” has the meaning given in the Act.]

(2) The references in paragraphs (c)(i) to (iv), (d)(i) to (iv) and (e)(i) to (iv) of [F11the definition of “UK undertaking”] to a limited company, an unlimited company, a Scottish partnership which is not a limited partnership or a Scottish partnership which is a limited partnership include a comparable undertaking incorporated in or formed under the law of a country or territory outside the United Kingdom; and in relation to such an undertaking the references in those paragraphs to the members and general partners are to be construed as references to the members of the undertaking comparable to members or general partners.

(3) An undertaking which is a large undertaking in a financial year does not cease to be a large undertaking because it no longer meets at least two of the criteria in the definition of “large undertaking” in the following financial year.

(4) But if a large undertaking ceases to meet at least two of the criteria in the definition of “large undertaking” in two consecutive financial years, it ceases to be a large undertaking on the first day of the financial year immediately following the second of those consecutive years.

(5) If agreements of the kind referred to in the definition of “project” are substantially interconnected, those agreements are treated for the purposes of these Regulations as a single project.

(6) For the purpose of paragraph (5), “substantially interconnected” means forming a set of operationally and geographically integrated contracts, licences, leases or concessions or related agreements with substantially similar terms that are signed with a government, giving rise to payment liabilities.

(7) Such agreements may be governed by a single contract, joint venture, production sharing agreement, or other overarching legal agreement.

Textual Amendments

F1Words in reg. 2(1) omitted (31.12.2020 with effect in relation to financial years beginning on or after IP completion day) by virtue of The Accounts and Reports (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/145), regs. 1(2)(b), 2, Sch. 3 para. 36(a) (with reg. 7(2)) (as amended by S.I. 2020/523, regs. 1(2), 10, 11); 2020 c. 1, Sch. 5 para. 1(1)