The Government of Ghana says an International Chamber of Commerce (ICC) Tribunal ruling in its tax dispute with Tullow Oil plc has upheld the Ghana Revenue Authority’s (GRA) assessment against the oil producer.
The ruling relates to a corporate income tax assessment arising from insurance proceeds Tullow received between 2016 and 2019 under its corporate interruption insurance policy.
According to the Government, the Tribunal dismissed Tullow’s claims and upheld the broader GRA tax assessment of US$393.09 million.
Finance Minister Dr Cassiel Ato Forson said the Tribunal also determined that the assessment was not time-barred, the penalty imposed by the GRA was proper and the Authority’s enforcement action was lawful.
The Tribunal separately ruled that a US$196.5 million portion of the tax assessment did not breach the Petroleum Agreements between Tullow and the Government of Ghana.
It also determined that the 100 per cent penalties imposed on the assessment fell outside the contractual protections contained in Tullow’s Petroleum Agreements.
The Government said it was preparing to implement the arbitral award in accordance with Ghanaian law.
Dr Forson commended the Office of the Attorney-General, the GRA and Ghana’s external legal counsel, Foley Hoag LLP, for representing Ghana throughout the arbitration.
Despite the ruling, the Government said it remained open to resolving outstanding tax matters with Tullow through engagement, noting that discussions between the two sides had already begun before the Tribunal delivered its award.
Tullow, meanwhile, expressed disappointment with the Tribunal’s decision and said it would consider its next steps after further engagement with the Government.
The company did not disclose the specific action it may pursue but said it would provide an update in due course.
