The Ghana Revenue Authority (GRA) says an international arbitral tribunal has upheld its US$393.09 million tax assessment against Tullow Ghana Limited, in a major victory for Ghana.
The tribunal, constituted under the Rules of Arbitration of the International Chamber of Commerce, dismissed Tullow’s claims over the taxation of business interruption insurance proceeds.
It upheld the GRA’s assessment of US$393,091,993.70 and ruled that it did not breach the applicable Petroleum Agreements, was not time-barred and that the GRA’s enforcement action was lawful.
“The decision affirms the Authority’s position that the assessment was made in accordance with Ghana’s tax laws and reinforces the principle that all taxpayers, irrespective of their size or sector, are subject to the laws of the Republic,” the GRA said.
The Authority said it will work with the government and Tullow Ghana Limited to implement the award in accordance with Ghanaian law.
“As indicated by Government, implementation will take due account of the need to secure revenues lawfully due to the State while supporting the continuity of operations and investment in the Jubilee and TEN fields,” it said.
The dispute arose from the taxation of business interruption insurance proceeds received by Tullow Ghana Limited in connection with its petroleum operations in Ghana.
Tullow challenged the GRA’s tax assessment through international arbitration, leading to proceedings under the ICC Rules of Arbitration.
The tribunal’s decision has now dismissed Tullow’s claims and upheld the GRA’s US$393.09 million assessment, bringing a major stage of the tax dispute to a close.
