Tullow Oil 'concerned' over tax ruling in Uganda
Published 17/07/2014 | 08:37
A capital tax ruling in Uganda has caused some concern for the subsidiaries of Tullow Oil operating in Africa.
Tullow was issued with a Capital Gains Tax (CGT) assessment by the Uganda Revenue Authority (URA) of approximately $472m (€349m).
Having paid the appeal legal requirement of 30pc of the assessment (approximately $142m), Tullow has contested the ruling.
The company maintains that the amount already paid exceeds its liabilities in relation to CGT.
“Tullow is very concerned by this ruling which ignores a contractual term signed by a Government Minister in Uganda," said Chief Executive Aidan Heavey.
"Tullow is Uganda’s largest foreign investor and a major taxpayer. Over the last 10 years, Tullow has spent $2.8bn in Uganda and discovered 1.7 billion barrels of oil. This money was spent by Tullow on the understanding that our contracts with the Government, which contained important incentives to invest that were vital at a time when no oil had been discovered in Uganda, would be honoured."
"We will now carefully consider all our options to robustly challenge this ruling.”