The Ghana Revenue Authority (GRA) on Thursday welcomed an arbitral tribunal’s decision upholding its US$393,091,993.70 tax assessment against Tullow Ghana Limited over business interruption insurance proceeds.

The tribunal, constituted under the Rules of Arbitration of the International Chamber of Commerce (ICC), dismissed claims brought by Tullow Ghana Limited against the Republic of Ghana.

A statement issued in Accra said the tribunal determined that its tax assessment did not breach the applicable Petroleum Agreements and was not time-barred.

It also determined that the GRA’s enforcement action in relation to the assessment was lawful, according to a statement issued by the Authority.

The GRA said the decision affirmed its position that the assessment was made in accordance with Ghana’s tax laws.

The statement said the decision also reinforced the principle that all taxpayers, irrespective of their size or sector, were subject to the laws of Ghana.

The Authority said it recognised the contribution of the petroleum sector to the Ghanaian economy and remained committed to administering tax laws in a fair, transparent, consistent and predictable manner.

It said its responsibility was not only to mobilise revenue for national development but also to ensure that taxpayers were treated fairly.

The GRA said it was committed to maintaining a stable environment for legitimate business and investment while enforcing Ghana’s tax laws.

The Authority acknowledged the leadership of the Government and support from the Office of the Attorney-General and Ministry of Justice, the Ministry of Finance and Ghana’s external legal counsel, Foley Hoag LLP to ensure tax compliance lawfully.

It also commended its officers and technical teams for their professional work, diligence and commitment, which had contributed to the defence of the tax assessment.

The GRA said the outcome underscored the importance of strong institutions, sound tax administration and consistent application of Ghana’s laws.

It said it would work with the Government and Tullow Ghana Limited to give effect to the award in accordance with Ghanaian law.

The implementation would take account of the need to secure revenues lawfully due to the State while supporting the continuity of operations and investment in the Jubilee and TEN fields.

The GRA encouraged businesses operating in Ghana to meet their tax obligations fully and promptly, saying it would continue to administer the tax laws while strengthening voluntary compliance and maintaining a fair and predictable tax environment.