TaxCorporate TaxTullow Oil reduces effective tax rate

Tullow Oil reduces effective tax rate

Production sharing agreements help to reduce oil company's tax rate.

Tullow Oil has reduced its effective tax charge from 35.5% of profits in 2003, to 33% in 2004 because of a production sharing agreement held by one of its recent acquisitions.

Tullow acquired Energy Africa for £311m in May 2004. Energy Africa, instead of paying tax, shared a portion of production with the host government where it was based, and as a result Tullow’s effective tax rate was reduced.

Tullow’s turnover for 2004 increased by 74% to £225.3m.

Related Articles

‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

1w Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

1m Emma Rawson
R&D incentives: How businesses can reap the rewards of innovation

Corporate Tax R&D incentives: How businesses can reap the rewards of innovation

2m Sam Swansborough
Q&A with the Financial Secretary to the Treasury

Corporate Tax Q&A with the Financial Secretary to the Treasury

3m Emma Smith, Managing Editor
Guide to the UK corporate tax system

Corporate Tax Guide to the UK corporate tax system

3m Emma Smith, Managing Editor
OTS report: Corporation tax should follow accounts

Corporate Tax OTS report: Corporation tax should follow accounts

2m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

2m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

3m Emma Smith, Managing Editor