SEADRILL GHANA OPERATIONS LIMITED v. THE COMMISSIONER-GENERAL

JUDGMENT

KORANTENG, J.A:

INTRODUCTION

This is an appeal against the ruling of the High Court, Commercial Division, Court 8, delivered on 5th April 2022 which struck out and dismissed the tax appeal filed by the Appellant. In this judgment, for case of reference the Appellant/Respondent/Appellant will be referred to as "the Appellant" and the Respondent / Applicant/ Respondent, as the "Respondent." The notice of Appeal found at pages 116-121 of Volume 3 of the Record of Appeal, was filed on 25th April 2022.

BACKGROUND FACTS

2.1 The Appellant was a subcontractor to Tullow Ghana Limited, providing a drilling unit and associated drilling services under a Petroleum Agreement dated 10th March 2006. The parties to the agreement were Tullow Ghana Limited and its JV Partners on the one part and the Government of the Republic of Ghana and the Ghana National Petroleum Corporation on the other part.

2.2 The Respondent is the head of the Ghana Revenue Authority, a statutory body established by the Ghana Revenue Authority Act, 2009 (Act 791) to provide a holistic approach to tax and customs administration in Ghana.

2.3 In 2019, the Respondent in exercise of its statutory duty conducted a tax audit on the Appellant's business operations from January 2012 to December 2018.

2.4 Upon completion of the audit the Respondent in a letter dated November 8, 2019, assessed the tax liability of the Appellant to be U$305,606,164.19. See Exhibit PM 3 Pg 20 Vol 3 ROA (hereinafter referred to as "the first assessment").

2.5 The Appellant dissatisfied with the first assessment, lodged an objection to same in a letter dated 11th December 2019. See Exhibit PM 4 Pg 31 Vol 3

ROA.

2.6 As a condition precedent to hearing the appeal, the Appellant was required to pay an objection deposit of 30% of the assessed tax to the Respondent. The Appellant's application for a reduction resulted in a reduced payment of US$12,500,000.00 representing 4.09% of the tax in dispute.

2.7 The Respondent proceeded to consider the objection and by a letter dated 8th July 2020 reduced the Appellant's tax liability from US$ 305,606,164.19 to US$10,222,849.35 considering the US$12,500,000.00 already paid as the objection deposit. See Exhibit PM6 Pg 38 Vol 3 ROA (hereinafter referred to as the Objection Decision).

2.8 The Appellant, dissatisfied with the objection decision, objected against this decision in a letter dated 28th July 2020. See Exhibit PM7 Pg 50 Vol 3 ROA

2.9 The Appellant's second objectio