MAERSK RIGWORLD GHANA LTD vs THE COMMISSIONER –GENERAL (GRA)

Notice of a Tax appeal against the final objection decision of a tax assessment by the Commissioner General of the Ghana Revenue Authority (hereinafter referred to as the Respondent) was filed in the Registry of this Court on 8th of November, 2021 by the Maersk Rigworld Ghana Ltd. (hereinafter referred to as the Appellant).The grounds are as follows:

1. The Respondent erred in Law by disallowing Withholding Tax Credit Certificates amounting to US$291,174.81 issued in the name of Appellant.

2. Without any legal basis, the Respondent misstated the Value Added Tax and the National Health Insurance Levy (VAT/NHIL) amount (as captured on the Appellant’s VAT returns) in its audit findings to the detriment of the Appellant

3. The Respondent erred in Law by rejecting some of the figures in a section of the Appellant’s audited Financial Statements prepared in accordance with generally accepted accounting principles.

4. The Respondent erred in Law by disallowing the input VAT amount to US$3,888,216.60 claimed by the Appellant on its VAT/NHIL Returns in contravention of Section 48(1) of the Value Added Tax Act, 2013 (Act 870).

5. The Respondent erred in Law by rejecting the VAT Relief Purchase Orders issued to the Appellant for services actually rendered to ENI Ghana Exploration and Production Limited under a subcontract agreement for the provision of Deepwater DP Drilling Rig dated 30th January 2015.

Grounds 2 and 3 were later abandoned by the Appellant.

BACKGROUND

The Appellant is a Limited Liability Company duly incorporated under the Laws of Ghana and engaged in the business of offshore drilling and associated services in the petroleum industry. The Respondent is the Head of the Ghana Revenue Authority, a statutory body responsible for tax administration and revenue collection in Ghana. The Government of the Republic of Ghana, Ghana National Petroleum Corporation and Heliconia Energy Ghana Limited entered into a Petroleum Agreement (referred to as PA) in respect of Offshore Cape Three Point Contract Area, in the Republic of Ghana.

Subsequently, Heliconia assigned its interest under the Petroleum Agreement (PA) ENI Ghana Exploration and Production Limited (ENI) as the new Petroleum Contractor under the PA. Pursuant to the provisions of the PA, ENI entered into a Subcontract Agreement dated 30th January 2015 with Maersk Drillship IV Singapore Pte Limited Deepwater DP Drilling and the Appellant herein for the provision of services at the Deepwater DP D