The Ghana Revenue Authority (GRA) has welcomed an international arbitral tribunal’s decision upholding its US$393.09 million tax assessment against Tullow Ghana Limited over the taxation of business interruption insurance proceeds.
The tribunal, constituted under the Rules of Arbitration of the International Chamber of Commerce (ICC), dismissed claims brought by Tullow against the Republic of Ghana and affirmed the legality of the GRA’s assessment.
According to the GRA, the tribunal determined that the assessment did not breach the applicable Petroleum Agreements, was not time-barred and that the Authority’s enforcement action was lawful.
The ruling, the GRA said, reinforces its position that the assessment was made in accordance with Ghana’s tax laws and that businesses operating in the country are subject to the same legal and tax requirements regardless of their size or sector.
Commenting on the decision, GRA Commissioner-General Anthony Kwasi Sarpong said the outcome demonstrated the Authority’s commitment to applying Ghana’s tax laws fairly to both domestic and international businesses.
“The Ghana Revenue Authority welcomes the news of victory at the London Arbitration sustaining a tax claim of over US$393 million,” Mr Sarpong said.
He said the Authority recognised Tullow as an important partner in Ghana’s petroleum industry and would engage the company to resolve the tax obligation without disrupting its operations.
“When there is a dispute, we follow the rules,” he said, adding that GRA would work with Tullow and other relevant parties to ensure the obligation was settled in a manner that supports continuity of the company’s business.
The Authority said implementation of the award would be undertaken in accordance with Ghanaian law, while taking into consideration the need to protect revenues due the State and maintain operations and investment in the Jubilee and TEN fields.
The GRA said the petroleum industry remained an important contributor to Ghana’s economy and reiterated its commitment to administering tax laws in a manner that is fair, transparent, consistent and predictable.
It said its mandate extended beyond revenue mobilisation to ensuring fair treatment of taxpayers and maintaining a stable environment for legitimate business and investment.
The Authority also acknowledged the support of the Government, the Office of the Attorney-General and Ministry of Justice, the Ministry of Finance and external legal counsel Foley Hoag LLP during the arbitration proceedings.
It further commended its officers and technical teams for their work in defending the assessment.
The GRA said the outcome highlighted the importance of strong institutions, sound tax administration and consistent enforcement of Ghana’s laws.
The Authority added that it would continue constructive engagement with taxpayers and encourage businesses to meet their tax obligations fully and promptly, while strengthening voluntary compliance and maintaining a predictable tax environment.
Source: businesspostonline
