Ghana wins $393 million tax arbitration against Tullow — MyJoyOnline

Ghana has won an international tax arbitration case against Tullow Ghana Limited concerning the taxation of business interruption insurance payments. The arbitral tribunal fully upheld the Ghana Revenue Authority’s tax assessment of $393,091,993.70, MyJoyOnline reports.

Arbitration ruling

The tribunal was constituted under the Arbitration Rules of the International Chamber of Commerce. It dismissed all of Tullow’s claims and fully upheld the tax assessment conducted by the Ghana Revenue Authority.

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Ghana’s Finance Minister Cassiel Ato Forson said that the tribunal found no breaches of the petroleum agreements. According to him, the arbitrators also found the application of the penalty appropriate, determined that the period for the tax assessment had not expired, and confirmed the lawfulness of the tax authority’s actions in enforcing it.

Government’s next steps

Forson thanked the Office of the Attorney General, the Ghana Revenue Authority, and the state’s external legal advisers, Foley Hoag LLP, for defending the country’s interests. The government plans to enforce the arbitration award in accordance with Ghanaian law, while preserving Tullow’s ability to continue operating and investing in the Jubilee and TEN fields.