As a person with interest in tax, I am excited about this development and I cannot wait to read the full arbitral award to understand the Tribunal’s reasoning, particularly on the tax treatment of the insurance proceeds, the limitation issue, the penalties and the interaction between Ghana’s tax laws and the Petroleum Agreements.
Also, congratulations to all the institutions and professionals who worked to defend Ghana’s position, particularly the Ghana Revenue Authority, the Office of the Attorney-General, the Ministry of Finance, Ghana’s external legal counsel, and the technical teams who supported the case.
That said, I want to sound a note of caution: we should not treat this as Ghana versus Tullow, or turn it into a celebration of one party defeating the other.
Tax disputes are a normal part of complex commercial relationships, particularly in sectors such as oil and gas where contracts, tax legislation, financing arrangements and long-term investments intersect.
Yes, Ghana has a legitimate responsibility to protect its tax base and enforce its laws, but Tullow also remains an important investor and commercial partner in the country’s petroleum sector.
Hence, we should avoid an approach that, in seeking to collect every amount immediately, unintentionally constrains Tullow’s ability to fund operations and future investment in Jubilee and TEN. Equally, the existence of a long-term commercial relationship should not become a reason for legitimate tax liabilities to be ignored.
The appropriate balance is therefore tax enforcement with commercial pragmatism.
This is particularly important because Ghana and the Jubilee/TEN partners have already committed themselves to a longer-term relationship extending to 2040. That relationship requires significant capital investment, continued production, gas supply, local employment and revenues to the State.
Author: Dickson Assan, CA
Chartered Accountant| SME Business Advisor | Career Coach
