Amanze Chinonye
Ghana has secured a ruling upholding a $393.1 million tax assessment against Tullow Ghana Limited, a decision that could affect the oil producer’s finances as the government seeks to collect the liability without disrupting operations in the country’s key Jubilee and TEN fields, Prime Business Africa reports.
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An arbitral tribunal constituted under the International Chamber of Commerce Rules of Arbitration dismissed all claims brought by Tullow over the taxation of business interruption insurance proceeds, Ghana’s Finance Ministry said on Wednesday.
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The tribunal upheld the Ghana Revenue Authority’s assessment of $393,091,993.70 and found that it did not breach the petroleum agreements, the penalty was properly applied and the assessment was not time-barred. It also ruled that the authority’s enforcement action was lawful.
The government said it had been in discussions with Tullow before the ruling to resolve outstanding tax matters amicably and that those talks would continue. The discussions will cover the arbitration matter as well as separate proceedings concerning the disallowance of loan interest.
Finance Minister Cassiel Ato Forson said the ruling affirmed Ghana’s position that companies operating in the country are subject to its laws, regardless of their size.
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The government, however, said it would take into account the continuity of Tullow’s operations and its capacity to sustain investment when implementing the award. Tullow is Ghana’s largest petroleum producer, with interests in the Jubilee and TEN fields.
Ghana said it would seek to secure the tax revenue due to the state while preserving Tullow’s ability to continue operating and investing in the country.
The government said Tullow’s operations support Ghana’s energy security, domestic gas supply and thousands of livelihoods, underscoring the importance of maintaining production while the outstanding tax issues are resolved.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
