Tullow complain about Museveni, URA
Apr 15, 2013
Tullow Oil company officials complained in court hearings that ended in London recently that President Yoweri Museveni and the Uganda Revenue Authority commissioner (URA) general, Allen Kagina, thwarted all efforts to lower the oil company’s tax liabilities arising out of the $1.45b purchase of Her
By Vision Reporter
Tullow Oil company officials complained in court hearings that ended in London recently that President Yoweri Museveni and the Uganda Revenue Authority commissioner (URA) general, Allen Kagina, thwarted all efforts to lower the oil company’s tax liabilities arising out of the $1.45b purchase of Heritage Oil’s interest in Oil Blocks in Uganda.
One complaint relates to the President raising an additional $30m tax assessment against a $100m payment Tullow made to Heritage Oil.
The $30m had initially been left out of the calculated tax the oil companies were liable to pay.
Presenting arguments over 10 days of hearings in the case Tullow Uganda Limited v. Heritage Oil & Gas and Heritage Oil Plc., Tullow officials said President Museveni and URA boss Kagina were consistently “unwavering” in demanding for the $313m taxes to be paid off the sale of Heritage assets to Tullow.
The oil company eventually paid the full $313m to the Uganda government after months of hedging and negotiating.
Additionally, two weeks ago, Uganda won a landmark $434m tax case against Heritage Oil and Gas Limited after an arbitration team, also in London, ruled against the three core tax claims lodged by Heritage.
Documents unveiled in court during the hearings in London revealed that Tullow officials referred to Kagina by the codename ‘LB’, which stood for ‘Lady Boss’.
Day 6 Tullow Uganda Limited vs Heritage Oil.docx by The New Vision