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Heritage must pay full taxes on Ugandan oil deal, says minister
PETROLEUM explorer Heritage Oil must pay the full amount of tax on earnings from the sale of assets in Uganda before the government fully endorses the deal, the country’s energy minister said yesterday.
The Ugandan government said on 6 July it had given Heritage conditional approval to sell its exploration assets in the country to Tullow Oil after months of delay caused by a dispute over tax on earnings from the sale.
Under the conditional approval, Heritage was to deposit 30 per cent of the disputed $404m (£261m) capital gains tax with the Uganda Revenue Authority (URA) and give the bank a guarantee for the remaining 70 per cent, which would be redeemable on completion of an arbitration process.