Ghana secured a major ruling in a tax dispute with Tullow Oil, a London-headquartered oil producer operating Ghana’s Jubilee oil field, in an International Chamber of Commerce (ICC) arbitration tribunal, a government release said on Wednesday.
In the case brought by Tullow against the government of Ghana, the tribunal upheld the 393 million U.S. dollars tax assessment claim by the Ghana Revenue Authority (GRA) against the oil company.
The tribunal delivered its ruling following arbitration proceedings conducted under the ICC Rules of Arbitration.
The dispute centered on the taxation of business interruption insurance proceeds received by Tullow, the release said.
“The tribunal found that the assessment did not breach the applicable petroleum agreements, while confirming that the penalty imposed by GRA was properly applied,” the release disclosed.
The tribunal also rejected Tullow’s argument that the assessment was time-barred, and asserted that the enforcement action by GRA was lawful.
The release said the government of Ghana would work closely with Tullow to implement the outcome of the arbitration. Enditem
