The Ghana Revenue Authority (GRA) has secured a major victory for the state after an international arbitration tribunal upheld its US$393.09 million tax assessment against Tullow Ghana Limited.

The ruling follows a prolonged dispute between the GRA and the oil producer over the taxation of proceeds received by Tullow under its business interruption insurance policy.

The tribunal, constituted under the Rules of Arbitration of the International Chamber of Commerce (ICC), dismissed Tullow’s claims and upheld the GRA’s assessment in full.

Ghana secures favourable ruling in GRA-Tullow tax arbitration

The outcome represents a significant boost for the GRA under Commissioner-General Anthony Kwasi Sarpong, who has overseen the Authority’s efforts to defend the tax assessment and protect the revenue due to the state.

Sarpong, who became GRA Commissioner-General in January 2025, has been leading the Authority as it pursues improved revenue mobilisation and enforcement.

The dispute dates back to December 2022, when Tullow Ghana received a corporate income tax assessment of US$196.5 million from the GRA relating to proceeds received under Tullow’s corporate Business Interruption Insurance policy for the 2016 to 2019 financial years.

Tullow subsequently challenged the assessment and referred the matter to ICC arbitration in February 2023.

The company had argued that the assessment breached its rights under the petroleum agreements governing its operations in Ghana.

However, the tribunal has now rejected Tullow’s claims and affirmed the GRA’s position, bringing the arbitration to a favourable conclusion for Ghana.

The ruling is separate from another tax dispute involving a US$190.5 million assessment relating to the disallowance of loan interest deductions for the 2010 to 2020 financial years. That matter was also referred to ICC arbitration but remains separate from the ruling on the insurance proceeds.

The latest victory comes after an earlier ICC arbitration ruling in January 2025 went against the GRA in a separate US$320.3 million Branch Profits Remittance Tax dispute involving Tullow Ghana. In that case, the tribunal determined that the tax was not applicable under the petroleum agreements.

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The successful defence of the US$393.09 million assessment therefore marks a significant development in the GRA’s ongoing efforts to enforce Ghana’s tax laws and protect the state’s revenue interests in disputes involving major taxpayers.

DR/MA

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