In the aftermath of its arbitration win over Tullow Oil, Ghana is working on new tax legislation that could close gaps in how some assets and their proceeds are taxed.
Tax expert and lawyer Francis Timore Boi says the government is preparing a new tax bill for Parliament. He spoke in an interview monitored by The High Street Journal.
“The government is working on the new tax bill which will be presented to Parliament soon,” he said. According to him, some clauses addressing recent concerns have already been included.
One of those concerns is where insurance is bought for an asset in Ghana but the policy is taken outside the country. Francis Timore-Boi said he has followed recent arguments on the subject, and believes the law must be clear.
“Even if an asset is located in Ghana and insurance is taken outside of the country, any proceeds which can be tied to the asset in Ghana should be a subject of taxation in Ghana,” he said.
In simple terms, the position he described is that the location of the insurer should not decide whether Ghana can tax. If the proceeds are linked to an asset in Ghana, the tax claim should follow the asset.
Timore-Boi did not give details of every clause in the bill, and the draft has not yet been laid before Parliament. Its final wording may change as it goes through the legislative process.
His comments also sit alongside his wider call for care in how the state handles petroleum agreements. The two issues are linked, he suggested: clear laws and carefully drafted contracts both determine how much Ghana can collect from its resources.
For now, the bill remains something to watch. Once it is presented to Parliament, lawmakers, industry players and tax professionals will be able to see how far the proposed clauses go.
