MAERSK DRILLSHIP vs THE COMMISSIONER-GENERAL GHANA REVENUE AUTHORITY [2023]DLHC16735

Date	2023-10-19
Suit No.	SUIT NO: Hl/67 /2023
Citation No.	[2023]DLHC16735

POKU ACHEAMPONG J.A. (PRESIDING)

BARTELS-KODWO J.A.

NOBLE -NKRUMAH J.A

DR. ABDALLAH ALI-NAKYEA

BENEDICT ASARE

ESI PANYIN POKOO-AIKINS

MOHAMMED IBRAHIM

[2023]DLHC16735
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													<main id="main" class="content" style="min-height: 60rem" ><span style="font-size:12.0pt;mso-bidi-font-size:
11.0pt;font-family:&quot;Book Antiqua&quot;,serif;mso-fareast-font-family:&quot;Book Antiqua&quot;;
mso-bidi-font-family:&quot;Book Antiqua&quot;;color:#00B0F0">MAERSK DRILLSHIP<o:p></o:p>(APPELLANT/APPELLANT)<o:p></o:p><span style="font-size:12.0pt;mso-bidi-font-size:
11.0pt;font-family:&quot;Book Antiqua&quot;,serif;mso-fareast-font-family:&quot;Book Antiqua&quot;;
mso-bidi-font-family:&quot;Book Antiqua&quot;;color:#00B0F0">vs.<o:p></o:p><span style="font-size:12.0pt;mso-bidi-font-size:
11.0pt;font-family:&quot;Book Antiqua&quot;,serif;mso-fareast-font-family:&quot;Book Antiqua&quot;;
mso-bidi-font-family:&quot;Book Antiqua&quot;;color:#00B0F0">THE COMMISSIONER-GENERAL
GHANA REVENUE AUTHORITY<o:p></o:p>(RESPONDENT/RESPONDENT)<o:p></o:p>[COURT
OF APPEAL, ACCRA]<o:p></o:p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <o:p></o:p><div style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom-width: 1.5pt; border-bottom-color: black; padding: 0cm 0cm 1pt;">

<p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;text-align:
justify;line-height:normal;mso-pagination:none;text-autospace:none;border:none;
mso-border-bottom-alt:solid black 1.5pt;padding:0cm;mso-padding-alt:0cm 0cm 1.0pt 0cm"><a name="_heading=h.gjdgxs"></a>SUIT NO: Hl/67 /2023&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;DATE: 19TH OCTOBER, 2023<o:p></o:p>

</div>COUNSEL<o:p></o:p><div style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom-width: 1.5pt; border-bottom-color: black; padding: 0cm 0cm 1pt;">

</div>CORAM<o:p></o:p>POKU ACHEAMPONG J.A. (PRESIDING) BARTELS-KODWO J.A. NOBLE
-NKRUMAH J.A<o:p></o:p><div style="border-top-width: 1.5pt; border-top-color: black; border-left: none; border-bottom-width: 1.5pt; border-bottom-color: black; border-right: none; padding: 1pt 0cm;">

<p class="MsoNormal" align="center" style="margin-bottom:0cm;margin-bottom:.0001pt;
text-align:center;line-height:normal;mso-pagination:none;text-autospace:none;
border:none;mso-border-top-alt:solid black 1.5pt;mso-border-bottom-alt:solid black 1.5pt;
padding:0cm;mso-padding-alt:1.0pt 0cm 1.0pt 0cm">JUDGMENT<o:p></o:p>

</div>BARTELS-KODWO, JA:<o:p></o:p>INTRODUCTION<o:p></o:p>&nbsp;This is an appeal against
the ruling of the High Court, (Commercial Division) Accra dated 19th October
2022 which decision upheld in part, an appeal brought by Maersk Drillship IV
Singapore (hereinafter referred to as "the Appellant_")against the
Final Objection Decision of the Commissioner-General of the· Ghana Revenue
Authority (hereinafter referred to as "the Respondent) dated 27th
September 2021. The dispute between the parties concerns the interpretation and
application of Articles 12(1) and (3) as well as Article 26 of the Offshore
Cape Three Points Petroleum Agreement, Sections 27 and 39(3) of the Petroleum
Income Tax Act, 1987 (PNDC Law 188), the Internal Revenue Act, 2000 (Act 592)
and the Income Tax Act 2015 (Act 896). The instant appeal requires that this
Honourable Court properly construe and apply the above provisions. This is
because the central contention of the Appellant in this appeal is that on a
true and proper construction of the provisions above considered in the
appropriate context, the Appellant is not liable to pay any other tax under any
other tax law after a 5% final withholding tax is withheld on its behalf by
ENI. Specifically, the Appellant avers that the Honourable High Court erred
when it held that the Respondent was right in imposing income tax on its
earnings for the period 2015-2017 and branch profit tax on same.<o:p></o:p>The relevant period comprises the 2015-2017 years of
assessment. The Appellant, based in Singapore, was registered on the 28th of
January 2015 under the laws of the Republic as an external company. According
to the statement of facts filed on behalf of the Appellant, the Appellant is "engaged in the business of providing
services to the upstream petroleum industry in Ghana". On 30th January
2015, the Appellant entered into a subcontract agreement to provide services to
ENI Ghana Exploration and Production Limited ("ENI"), the successor
to a Petroleum Agreement (PA) entered into by its predecessor Heleconia Energy
Ghana Limited and the Government of Ghana acting through the Ghana National
Petroleum Corporation.<o:p></o:p>&nbsp;The PA, which was attached to the Notice of Appeal filed
at the registry of the Honourable High Court as Exhibit MDS 2 and can be found
on page 18 of Volume 1 of the Record of Appeal, is a Petroleum Agreement
entered into between the Republic of Ghana, the Ghana National Petroleum
Corporation and Heliconia Energy Ghana Limited in respect of blocks offshore
Cape Three Points. This agreement, in its Article 12(1) states as follows;<o:p></o:p>"No tax, duty,
fee or other impost shall be imposed by the State or any political subdivision
on Contractor, its Subcontra</main>