In a significant development, the International Chamber of Commerce (ICC) has ruled in favour of Tullow Oil regarding a $320 million tax dispute with the Ghana Revenue Authority (GRA) according to a release by the West Africa-focused company.
The ICC determined that the Branch Profit Remittance Tax (BPRT) does not apply to Tullow’s operations in Ghana’s Deepwater Tano and West Cape Three Points fields.
Consequently, Tullow is exempt from the $320 million BPRT assessment and will not face future BPRT liabilities related to these operations.
The arbitration ruling on the BPRT is a setback for Ghana and the GRA, as the decision effectively denies the country $320 million in expected revenue. It also raises broader questions about the fiscal frameworks governing Ghana’s oil and gas sector, particularly as the government seeks to attract investment while ensuring fair tax compliance.
Tullow Oil’s response to the ruling
In the press statement on the ruling, Tullow Oil expressed relief at the outcome, which it believes upholds its position on the tax assessments.
“Tullow is pleased that the ICC tribunal has confirmed our position that the $320 million BPRT assessment issued by the GRA in Ghana was not applicable to our operations,” the company stated. “This ruling brings clarity on the applicability of BPRT to our operations under the relevant Petroleum Agreements and double tax treaties.“
The company emphasized its continued commitment to working with the Government of Ghana to resolve outstanding disputes amicably.
Source: myghanadaily
