The Ghana Revenue Authority (GRA) has confirmed it will resolve a $393 million tax dispute with Tullow Ghana without stopping the oil company’s operations. The announcement follows a ruling by an international tribunal that upheld the GRA’s tax assessment as lawful.
The London International Arbitration panel ruled in favour of the GRA after Tullow challenged the tax claim under the Petroleum Revenue Management Act. The disputed amount includes penalties and interest that have accumulated since the tax first became due.
Anthony Kwesi Sarpong, Commissioner-General of the GRA, spoke with Joy Business about the ruling and its implications. “The Ghana Revenue Authority welcomes the news of victory at the London Arbitration sustaining a tax claim of over US$393 million,” he said.
Sarpong described the ruling as significant because it confirms that the GRA applies Ghana’s tax laws fairly to both international and local businesses. “When there is a dispute, we follow the rules,” he added.
Despite the tribunal’s decision, Sarpong emphasised that the GRA sees Tullow Ghana as an important partner in the petroleum sector. He said the authority would work with the company to settle the outstanding tax in a way that does not disrupt its petroleum operations.
“GRA remains committed to protecting the country’s interest and placing Ghana first in our dealings,” Sarpong said.
The dispute has drawn attention because of its size and the potential impact on Ghana’s oil industry. Tullow Ghana is a major player in the country’s petroleum sector, and any interruption to its activities could affect revenue and jobs.
The GRA’s tax claim is based on assessments made according to the Petroleum Revenue Management Act, reflecting the government’s effort to collect owed taxes and penalties from oil companies operating in Ghana.
The ruling at the London International Arbitration confirms the GRA’s position and may set a precedent for future tax disputes involving companies in the oil sector.
Commissioner-General Sarpong’s assurance to maintain Tullow’s operations while settling the tax dispute signals a willingness to balance enforcement with business continuity. This approach suggests the tax issue will be dealt with through negotiation rather than confrontation.
The outcome of this case will be closely watched by other oil companies and investors in Ghana, as it touches on how tax laws are applied and enforced in the sector. The GRA’s insistence on following established rules and engaging partners could influence future dealings.
For now, the GRA and Tullow Ghana have a clear task ahead: work out a payment plan that satisfies the tax claim without halting production or affecting the wider petroleum industry. The resolution of this dispute will shape the relationship between the government and oil companies in Ghana going forward.
According to Joy Online.
