By Morkporkpor Anku
Accra, Sept. 30, GNA – An International Chamber of Commerce (ICC) arbitral tribunal has upheld Ghana’s US$393.09 million tax assessment against Tullow Ghana Limited.
The tribunal dismissed all claims brought by Tullow over tax arising from business interruption insurance proceeds, ruling that the assessment did not breach the Petroleum Agreements between Ghana and Tullow.
Dr Cassiel Ato Forson, Minister of Finance, said in a statement issued in Accra that the tribunal also ruled that the penalty imposed was properly applied, the assessment was not time-barred and the Ghana Revenue Authority’s enforcement action was lawful.
It also ruled that the penalty imposed was properly applied, the assessment was not time-barred and the GRA’s enforcement action was lawful.
Dr Forson acknowledged the work of the Office of the Attorney-General, the GRA and Ghana’s external legal counsel, Foley Hoag LLP, in defending the interests of the Republic during the proceedings.
He said the outcome vindicated Ghana’s position that every company operating in the country, regardless of its size, was subject to the laws of Ghana.
The Minister said the award came at a critical time when Ghana and the Jubilee partners were working to maximise the prospects of the Jubilee and Tweneboa, Enyenra and Ntomme (TEN) fields.
He said prior to the tribunal’s decision, the Government had been in discussions with Tullow to resolve outstanding tax matters amicably, adding that the discussions would continue to cover both the matter determined by the tribunal and separate proceedings concerning the disallowance of loan interest.
Dr Forson described Tullow as a vital partner to Ghana and the country’s largest petroleum producer, noting that its operations in the Jubilee and TEN fields supported energy security, domestic gas supply and thousands of Ghanaian livelihoods.
He said it was in the national interest for the relationship between Ghana and Tullow to endure, while the Government would work closely with the company to give effect to the award in accordance with Ghanaian law.
The Minister said the Government would, in implementing the award, have due regard to the continuity of operations in the Jubilee and TEN fields and Tullow’s capacity to sustain the investments required in the fields.
He explained that Ghana’s laws empowered the GRA to determine the time and manner in which assessed tax liabilities were to be met.
Dr Forson said the Government would ensure that the award was implemented in a manner that secured revenues due the Ghanaian people while preserving Tullow’s ability to continue operating and investing in Ghana as a going concern.
GNA
Edited by Kenneth Sackey
Reporter: Morkporkpor Anku
Email: [email protected]