The transfer of shares in a going concern, is usually also the forte of the lawyer and not just the tax lawyer.
The failure to calculate in advance, possible capital gains tax arising from the transfer of shares/interest from Heritage Oil to Tullow Oil, left Minister Hilary Onek (please refer to my previous article titled: Heritage Oil, this oil is hot!)with a thorn of a possible 400 million US dollars capital gains tax loss in his side. Any prudent business man embarking on a new venture (in this case Oil exploration) would have consulted on all possible taxes due and arising on the transfer, before handing out any tax waivers or signing any contracts.
- Uganda jr energy min says Tullow to pay capital gains tax (reuters.com)
- UPDATE 1-Tullow to pay $400 mln capital gains tax to Uganda (reuters.com)
- U.S. Feared Oil Graft in Uganda (online.wsj.com)
- Tullow to begin Ghana production in December (marketwatch.com)
- Tullow pushes back Uganda oil production to 2012 (reuters.com)