The Ghana Revenue Authority (GRA) has welcomed an arbitral tribunal’s decision upholding its US$393.09 million tax assessment against Tullow Ghana Limited over business interruption insurance proceeds.
The tribunal, constituted under the Rules of Arbitration of the International Chamber of Commerce (ICC), dismissed Tullow’s claims and affirmed the assessment of US$393,091,993.70.
It also determined that the assessment 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 centred on the taxation of business interruption insurance proceeds, with Tullow challenging the GRA’s assessment through arbitration.
