The Ghana Revenue Authority (GRA) has secured a major victory in its tax dispute with Tullow Ghana Limited after an international arbitration tribunal upheld a US$393.09 million tax assessment against the oil producer.
The dispute centred on proceeds Tullow Ghana received under its business interruption insurance policy and whether those proceeds were subject to taxation in Ghana.
An arbitration tribunal constituted under the Rules of Arbitration of the International Chamber of Commerce (ICC) has now dismissed Tullow’s claims and upheld the GRA’s assessment in full.
The ruling brings to a favourable conclusion a dispute that has been ongoing since 2022 and represents a significant development in the GRA’s efforts to enforce Ghana’s tax laws and protect revenue due to the state.
The matter dates back to December 2022, when the GRA issued Tullow Ghana a corporate income tax assessment of US$196.5 million in relation to proceeds received under the company’s corporate Business Interruption Insurance policy for the 2016 to 2019 financial years.
Tullow challenged the assessment and referred the dispute to ICC arbitration in February 2023.
The company argued that the tax assessment was inconsistent with its rights under the petroleum agreements governing its operations in Ghana.
The tribunal has, however, rejected Tullow’s claims and affirmed the position taken by the GRA.
The successful defence of the assessment comes under Commissioner-General Anthony Kwasi Sarpong, who assumed office in January 2025 and has been overseeing the Authority’s revenue mobilisation and enforcement efforts.
The latest ruling is separate from another ongoing tax dispute between the GRA and Tullow involving a US$190.5 million assessment.
That case concerns the disallowance of loan interest deductions for the 2010 to 2020 financial years. Although it was also referred to ICC arbitration, it remains separate from the dispute over the insurance proceeds.
The latest decision also follows an earlier ICC arbitration ruling in January 2025 involving Tullow Ghana and a US$320.3 million Branch Profits Remittance Tax assessment.
In that separate case, the tribunal ruled against the GRA, determining that the tax was not applicable under the petroleum agreements.
The GRA’s successful defence of the US$393.09 million assessment therefore adds a significant development to its ongoing tax disputes with one of Ghana’s major oil producers.
It also underscores the Authority’s continued efforts to defend tax assessments and safeguard the state’s revenue interests in complex disputes involving major taxpayers.
