Ghana's Finance Minister, Dr. Cassiel Ato Forson, has stated that the government will work to secure tax revenues from Tullow Ghana Limited following an international arbitration victory. An arbitral tribunal under the International Chamber of Commerce Rules of Arbitration dismissed Tullow's claims over taxation of business interruption insurance proceeds. The tribunal upheld the Ghana Revenue Authority's assessment of $393,091,993.70 in taxes owed by Tullow. Dr. Forson emphasized the importance of Tullow to Ghana's petroleum sector.
Dr. Forson described Tullow as a vital partner to Ghana and the country's largest petroleum producer. The company's operations in the Jubilee and TEN fields contribute significantly to energy security, domestic gas supply, and thousands of Ghanaian livelihoods. The Finance Minister noted that the government will work closely with Tullow to implement the arbitral tribunal's award in accordance with Ghanaian law. This will ensure continuity of operations in the Jubilee and TEN fields.
The government will prioritize Tullow's capacity to sustain investments in the Jubilee and TEN fields, Dr. Forson said. The Finance Minister disclosed that the government had engaged in discussions with Tullow before the tribunal's decision to resolve outstanding tax matters amicably. These discussions will continue, covering both the matter determined by the tribunal and separate proceedings concerning the disallowance of loan interest.
Dr. Forson's statement highlights the government's intention to balance securing revenues due to the Ghanaian people with preserving Tullow's ability to operate and invest in Ghana as a going concern. The Finance Minister's assurance aims to maintain investor confidence in Ghana's petroleum sector. Tullow's operations play a crucial role in Ghana's energy landscape.
The arbitral tribunal's decision marks a significant development in the tax dispute between Tullow and the Ghana Revenue Authority. The tribunal's ruling upholds the GRA's assessment, which Tullow had challenged. The outcome has implications for Ghana's tax revenue and the country's relationship with international investors.
The government's approach to implementing the arbitral tribunal's award will be crucial in maintaining a stable investment climate in Ghana's petroleum sector. Dr. Forson's statement suggests a collaborative approach with Tullow to ensure a mutually beneficial outcome. This approach may set a precedent for resolving future tax disputes with international companies.
The tax dispute between Tullow and the Ghana Revenue Authority has been ongoing, with the ICC London ruling in favor of Ghana. Tullow had expressed disappointment with the ruling, stating that it would review the decision. The company's operations in Ghana remain significant, with the government emphasizing the importance of Tullow's investments in the Jubilee and TEN fields.
Key points
- The Ghanaian government will work to secure $393 million in tax revenues from Tullow while protecting the company's investments in the Jubilee and TEN fields.
- Finance Minister Dr. Cassiel Ato Forson emphasized the importance of Tullow to Ghana's petroleum sector and the need to balance revenue collection with preserving the company's ability to operate and invest in Ghana.
- The arbitral tribunal's decision upholds the Ghana Revenue Authority's assessment of taxes owed by Tullow, marking a significant development in the tax dispute between the two parties.
