Government to secure Tullow tax revenue while protecting operations – Ato Forson
Finance Minister Dr Cassiel Ato Forson says the government will ensure Ghana receives all revenues due from Tullow Ghana Limited following the country’s victory in an international tax arbitration case.
He, however, said the government would also take steps to protect Tullow’s ability to sustain its operations and investments in Ghana.
An arbitral tribunal constituted under the International Chamber of Commerce Rules of Arbitration dismissed all claims filed by Tullow regarding the taxation of business interruption insurance proceeds.
The tribunal subsequently upheld the Ghana Revenue Authority’s assessment of US$393,091,993.70 against the company.
In a press statement issued on Wednesday, September 30, Dr Forson described Tullow as a “vital partner to Ghana” and the country’s largest petroleum producer.
He said the company’s operations in the Jubilee and TEN fields play an important role in Ghana’s energy security, domestic gas supply and the livelihoods of thousands of Ghanaians.
According to him, the government will work with Tullow to implement the tribunal’s decision in accordance with Ghanaian law while considering the need to maintain uninterrupted operations in the Jubilee and TEN fields.
“The Government will therefore work closely with Tullow to give effect to the award in accordance with Ghanaian law,” he said.
Dr Forson added that the government would also take into account Tullow’s capacity to sustain the investments required to maintain operations in the fields.
He disclosed that the government had engaged Tullow in discussions before the tribunal’s ruling in an effort to resolve outstanding tax matters amicably.
He said those engagements would continue and cover both the tax matter determined by the tribunal and separate proceedings relating to the disallowance of loan interest.
Dr Forson stressed that the government’s objective is to secure the revenues owed to the Ghanaian people while ensuring that Tullow remains capable of operating and investing in Ghana as a going concern.
By Esther Padmore Amonoo
