MAERSK DRILLSHIP IV SINGAPORE PTE LTD. (SUING PER ITS LAWFUL ATTORNEY, JORGEN SCHAFFER) VS. THE COMMISSIONER GENERAL GHANA REVENUE AUTHORITY

The appellant, Maersk Drillship IV Singapore PTE Ltd, a Singapore-incorporated company registered as an external company in Ghana, entered into a subcontract with ENI Ghana Exploration and Production Limited (ENI), the contractor under a Petroleum Agreement ratified by Ghana's Parliament in 2006. The appellant provided drilling services in the Offshore Cape Three Points (OCTP) block from 2015 to 2017. The Ghana Revenue Authority (GRA) audited the appellant's tax affairs and assessed a total tax liability of approximately US$28.3 million, including corporate income tax, branch profit tax, withholding tax, PAYE, and VAT. The appellant objected, claiming exemption from taxes beyond a 5% withholding tax under the Petroleum Agreement's fiscal stability clause and relevant petroleum tax laws.

MAERSK DRILLSHIP IV SINGAPORE PTE LTD. (SUING PER ITS LAWFUL ATTORNEY, JORGEN SCHAFFER) (PLAINTIFF) VS. THE COMMISSIONER GENERAL GHANA REVENUE AUTHORITY (RESPONDENT) [SUPREME COURT, ACCRA] CIVIL APPEAL NO. J4/59/2024 DATE: 2ND APRIL, 2025 COUNSEL PROFESSOR ABDALLAH ALI-NAKYEA ESQ. WITH BENEDICT ASARE ESQ. FOR APPELLANT/APPELLANT/APPELLANT CEPHAS ODARTEY LAMPTEY ESQ. WITH MOHAMMED IBRAHIM ESQ. FOR RESPONDENT/RESPONDENT/RESPONDENT CORAM SACKEY TORKORNOO (MRS.) C.J (PRESIDING), AMADU JSC, ASIEDU JSC, GAEWU JSC, DARKO ASARE JSC JUDGMENT TANKO AMADU JSC: INTRODUCTION 1) My Lords, the instant appeal has arisen out of a dispute over the assessment and imposition of tax from petroleum operations. In its simplest definition, tax is a compulsory levy imposed by the State on an individual or an entity for public purposes. The taxman and the taxpayer are two persons of significant interest to the S...