GRA wins arbitration case, Tullow ordered to pay US$393m tax assessment

The Ghana Revenue Authority (GRA) has welcomed an arbitral tribunal’s decision to uphold its US$393,091,993.70 tax assessment against Tullow Ghana Limited concerning proceeds from business interruption insurance.

The tribunal, constituted under the International Chamber of Commerce (ICC) Rules of Arbitration, rejected claims filed by Tullow Ghana Limited against the Republic of Ghana.

According to a statement issued by the GRA in Accra, the tribunal found that the tax assessment did not violate the applicable Petroleum Agreements and was not barred by the relevant time limits.

It further ruled that the GRA’s enforcement of the assessment was lawful.

The Authority said the ruling supported its position that the assessment had been issued in accordance with Ghana’s tax laws.

The GRA added that the decision reaffirmed the principle that all taxpayers, regardless of their size or industry, are required to comply with Ghanaian law.

While acknowledging the significant contribution of the petroleum sector to the national economy, the Authority said it remained committed to administering the country’s tax laws fairly, transparently and consistently.

It said its mandate extended beyond revenue mobilisation for national development to ensuring that taxpayers were treated equitably.

The GRA also assured businesses and investors that it would continue to promote a stable environment for legitimate economic activity while enforcing tax obligations.

The Authority expressed appreciation to the government and the Office of the Attorney-General and Ministry of Justice, the Ministry of Finance, as well as its external legal advisers, Foley Hoag LLP, for their support in defending the assessment.

It also praised its officers and technical teams for their professionalism, diligence and contribution to the successful defence of the tax claim.

According to the GRA, the outcome highlights the importance of strong institutions, effective tax administration and the consistent enforcement of Ghana’s laws.

The Authority said it would collaborate with the government and Tullow Ghana Limited to implement the tribunal’s award in line with Ghanaian law.

It noted that implementation would seek to secure revenues legally owed to the State while also supporting continued operations and investment in the Jubilee and TEN oil fields.

The GRA urged businesses operating in Ghana to fulfil their tax obligations fully and on time, assuring taxpayers that it would continue to strengthen voluntary compliance while maintaining a fair and predictable tax environment.