GRA welcomes Tribunal decision upholding US$393 million tax assessment

On Thursday, the Ghana Revenue Authority (GRA) expressed satisfaction with an arbitral tribunal’s ruling that supported its US$393,091,993.70 tax assessment against Tullow Ghana Limited. The tribunal, established under the International Chamber of Commerce (ICC) arbitration rules, rejected the company's objections to the assessment.

According to the GRA, the decision confirmed that the tax assessment did not contravene the relevant Petroleum Agreements and was not time-barred. Moreover, the tribunal validated the legality of the GRA's enforcement actions concerning the assessment. The Authority stated that the decision reaffirmed its commitment to adhering to Ghana's tax regulations and emphasized that all taxpayers, regardless of their size or sector, must comply with the country's laws.

The GRA acknowledged the vital role of the petroleum industry in Ghana's economy and pledged to continue administering tax laws in a fair, transparent, consistent, and predictable manner. The Authority highlighted its responsibility to generate revenue for national development while ensuring fair treatment of taxpayers. The GRA expressed its dedication to fostering a stable environment for legitimate businesses and investments while enforcing the country's tax laws.

The organization credited the support of the Government, the Office of the Attorney-General and Ministry of Justice, the Ministry of Finance, and Foley Hoag LLP for aiding in the defense of the tax assessment. The GRA also praised its officers and technical teams for their professionalism in defending the tax assessment. The organization noted that the tribunal's ruling underscored the significance of robust institutions, effective tax administration, and consistent application of Ghana's laws.

The Authority assured that it would collaborate with the Government and Tullow Ghana Limited to enforce the award according to Ghanaian law, taking into account the need to secure revenues legitimately while maintaining the continuity of operations and investments in the Jubilee and TEN fields. The GRA urged businesses operating in Ghana to fulfill their tax obligations fully and promptly, emphasizing its commitment to maintaining a fair and predictable tax environment.