today's Pick
Tullow to challenge $400m URA tax bill
Publish Date: Jul 17, 2014
Tullow to challenge $400m URA tax bill
An oil field in western Uganda
  • mail
  • img
newvision

Tullow Oil will try to challenge a ruling that has left the Irish exploration group facing a bill for €195 million in extra taxes in Uganda, home to one of its potentially most lucrative assets, the Irish Times has reported.

Uganda’s tax appeal tribunal Wednesday upheld a finding by the country’s tax authority that Tullow should pay capital gains tax on the transfer of a 66 per cent share in an oilfield it discovered in the African country to Chinese player CNOOC and French giant Total.

The tribunal’s ruling means Tullow must pay an extra $265 million (€195 million) in taxes. Originally, the Uganda Revenue Authority demanded $407 million from the Irish company, but it paid 30 per cent – $142 million – upfront, while it appealed against the assessment.

International arbitration
Tullow said Wednesday that it plans to challenge the appeal body’s ruling in the courts and at an international arbitration tribunal, where its lawyers believe it would win. At the same time, it said that it hoped further talks with the government would resolve the row.

Sources said that if Tullow ultimately has to pay the full amount sought by the tax authorities, it would be unlikely to interfere with its long-term plans for Uganda. Tullow has discovered 1.7 billion barrels of oil in Uganda’s Lake Albert rift valley and believes the area could hold more than this. It is developing the licence areas involved in partnership with CNOOC and Total, which it recruited in 2012.

  RELATED STORIES 

URA wins $400m case against Tullow

Tullow Oil wins case against Heritage

Tullow paid sh59b to government in 2013

 

 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Police are on the hunt for a security guard in connection with burglary at the offices of (HRNJ-Uganda....
If I catch you in a lodge at lunchtime . . .
When ethics minister Fr. Lokodo called for the removal of condoms from Parliament, he met a lot of mixed responses....
Kony ‘suffering from diabetes, arthritis’
Seven recently-surrendered LRA rebels say Joseph Kony is aging and sickly, and that he is suffering from diabetes and arthritis....
City lawyer Kasango wanted by police
Still fresh from the Pension case scandal, city lawyer Bob Kasango has again found himself embroiled in another huge financial scandal and is currently being sought by police after he defrauded his client of money from the sale of her house in Kololo....
Mourdja's nose has been eaten away, like one lip and part of her upper gum, leaving the 13-year-old girl atrociously disfigured by noma, a disease that thrives on malnutrition....
IGG probes claims against UNRA
The Inspector General of Government is probing 76 claims of questionable conduct against the national roads authority....
Do you think Ugandan graduates are the worst in the region?
Yes
No
Can't Say
follow us
subscribe to our news letter