Uganda insisted that Heritage Oil the UK-listed oil explorer must agree to pay $360m (£243m) in capital gains tax on the 'super profits' it would make on a $1.35bn oilfields sale before it would sanction the deal the Financial Times reported (18 June). Uganda's energy minister told the FT that the Government 'would not budge' and that like any company in Uganda Heritage was liable for the tax. Heritage argued there was no precedent for CGT being paid on similar deals in the country and proposed transferring $108m to the Ugandan revenue authorities to be held until the dispute was resolved through arbitration in London.
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Uganda insisted that Heritage Oil the UK-listed oil explorer must agree to pay $360m (£243m) in capital gains tax on the 'super profits' it would make on a $1.35bn oilfields sale before it would sanction the deal the Financial Times reported (18 June). Uganda's energy minister told the FT that the Government 'would not budge' and that like any company in Uganda Heritage was liable for the tax. Heritage argued there was no precedent for CGT being paid on similar deals in the country and proposed transferring $108m to the Ugandan revenue authorities to be held until the dispute was resolved through arbitration in London.
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