Dr. Cassiel Ato Forson
Ghana has won a major tax arbitration case against Tullow Ghana Limited after an arbitration tribunal constituted under the Rules of Arbitration of the International Chamber of Commerce (ICC) ruled in favour of the Republic.
The tribunal, in its award delivered yesterday, upheld the position of the Ghana Revenue Authority (GRA) in a tax dispute involving an assessment of US$393,091,993.70 against Tullow Ghana Limited.
According to the Ministry of Finance, the tribunal ruled that the tax assessment by the GRA was valid and that the penalty imposed in connection with the assessment was properly applied.
It also rejected the argument that the assessment was time-barred, thereby affirming the validity of the GRA’s action in raising the tax liability against the oil producer.
The tribunal further held that the enforcement action taken by the GRA was lawful, strengthening the government’s position in the long-running tax dispute.
The Finance Minister, Dr. Cassiel Ato Forson, said the ruling represents a significant victory for the government in its efforts to protect tax revenues due the state from activities in Ghana’s petroleum sector.
According to him, the government would now work towards implementing the award while taking into consideration the interests of both Ghana and Tullow.
He stated that the government recognised Tullow’s importance to Ghana’s petroleum industry and intended to ensure that the company’s operations and investments in the country were sustained.
Tullow Ghana Limited is a major oil producer in the country, with operations in the Jubilee and Tweneboa, Enyenra and Ntomme (TEN) fields.
The Ministry of Finance said the company’s operations in the two fields supported Ghana’s energy security, domestic gas supply and the livelihoods of thousands of Ghanaians.
It indicated that it was, therefore, in the national interest for the relationship between Ghana and Tullow to endure despite the tax dispute.
Dr. Forson said the government would ensure that the implementation of the arbitration award secured the revenues due to the Ghanaian people while preserving Tullow’s ability to continue operating and investing in Ghana as a going concern.
He also indicated that discussions would focus on the time and manner in which the assessed liabilities would be met.
The Finance Minister said the government remained committed to protecting the country’s revenue interests while maintaining an investment environment that would enable critical petroleum operations to continue.
He said the government viewed the continued operation of Tullow in the Jubilee and TEN fields as important to Ghana’s energy security, domestic gas supply and economic activity.
A Daily Guide Report