Meet the lawyers from Foley Hoag, Shults law firm who helped Ghana’s tax arbitration victory against Tullow
The dispute concerned Tullow’s income tax liability for the 2016–2019 tax years on proceeds received from business interruption insurance. The award upheld the GRA’s assessment in full.
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A legal team led by Foley Hoag partner Tafadzwa Pasipanodya helped the Republic of Ghana secure a major victory in a tax arbitration brought by Tullow Ghana Limited (TGL), Ghana’s largest petroleum producer.
According to information provided by Foley Hoag, an arbitral tribunal constituted under the Rules of the International Chamber of Commerce (ICC) dismissed all of Tullow’s claims and upheld the Ghana Revenue Authority’s (GRA) tax assessment of more than US$393 million, including a 100 per cent penalty.
The dispute concerned Tullow’s income tax liability for the 2016–2019 tax years on proceeds received from business interruption insurance. The award upheld the GRA’s assessment in full.
Leading Ghana’s representation was Pasipanodya, who worked with a Foley Hoag team comprising Nicholas Renzler, Nour Nicolas, Sun Young Hwang, Jago Chanter and Bojana Bilankov. Peter Shults of Shults Law Firm served as co-counsel.
“The Tribunal’s decision is a resounding victory for the Republic of Ghana and the Ghana Revenue Authority,” Pasipanodya said.
She explained that the tribunal applied the standard used by Ghana’s Supreme Court when reviewing administrative decisions. Its examination focused on whether the GRA’s conclusions could reasonably have been reached on the material before it.
For Pasipanodya, the decision also has significance for other states defending tax revenue measures. She said the award reflected the caution arbitral tribunals exercise when considering challenges to a sovereign state’s tax administration.
The tribunal unanimously declared that the GRA’s assessment did not breach Article 12 of the Petroleum Agreements. It upheld both the income tax assessment and the penalty, while rejecting Tullow’s limitation challenge concerning the 2016 and 2017 tax years.
It further held that the GRA’s enforcement proceedings in January 2023 did not breach Article 24.10 of the Deepwater Tano Petroleum Agreement.
The outcome represents a substantial win for Ghana and places the Foley Hoag team, alongside co-counsel Peter Shults, at the centre of the successful defence of the country’s tax assessment.
