Ghana wins US$393m tax arbitration against Tullow Ghana

An arbitral tribunal has upheld a US$393 million tax assessment issued by the Ghana Revenue Authority (GRA) against Tullow Ghana Limited. The dispute, conducted under the Rules of Arbitration of the International Chamber of Commerce (ICC), centered on Tullow’s income tax liability for the 2016–2019 tax years regarding proceeds from business interruption insurance.

The tribunal unanimously dismissed all claims brought by Tullow, ruling that the assessment did not breach relevant Petroleum Agreements and was not barred by applicable time limits. The decision also affirmed that the GRA’s enforcement actions were lawful and consistent with Ghanaian tax laws.

The legal defense for the Republic of Ghana was a collaborative effort between Ghanaian officials, led by Attorney-General Dominic Akuritinga Ayine and Deputy Attorney-General Justice Srem-Sai, and the international law firm Foley Hoag LLP. The GRA stated the ruling reinforces the principle that all taxpayers must comply with national laws and expressed its commitment to applying tax legislation in a fair and transparent manner.