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.
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Report argues that the government must change the way it makes tax and budget decisions
Committee expresses concern about costs to businesses and April 2018 implementation date
Andrew Tyrie airs views on the Finance Bill, 'Making Tax Policy Better' report, and Brexit