Ghana has secured a major victory in an international tax arbitration case involving Tullow Ghana Limited, with an arbitral tribunal ruling in favour of the Republic over the taxation of business interruption insurance proceeds.

The tribunal, constituted under the Rules of Arbitration of the International Chamber of Commerce, dismissed all claims brought by Tullow and upheld in full the Ghana Revenue Authority’s tax assessment of US$393,091,993.70.

In a press statement issued on Wednesday, September 30, the Minister for Finance, Dr Cassiel Ato Forson, said the tribunal found that the assessment did not breach the Petroleum Agreements, the penalty was properly applied, the assessment was not time-barred, and the GRA’s enforcement action was lawful.

“The Tribunal ruled in favour of Ghana,” Dr Forson stated, adding that the outcome “vindicates the position Ghana has maintained throughout: that every company operating in this country, regardless of its size, is subject to the laws of Ghana.”

Dr Forson commended the Office of the Attorney-General, the Ghana Revenue Authority and Ghana’s external legal counsel, Foley Hoag LLP, for their role in defending the interests of the Republic.

He said the government would work to implement the award in accordance with Ghanaian law while maintaining Tullow’s capacity to continue operating and investing in the Jubilee and TEN fields.