Shell-BG capital gains tax is under tribunal: AG

Dodoma. The dispute over capital gain tax payment, following the acquisition of BG assets by Royal Dutch Shell, is still under the tax tribunal as the latter appealed over Tanzania Revenue Authority’s asset assessment.

Shell acquired BG Group in 2016, including a 60 per cent stake in blocks 1 and 4 in southern Tanzania, which contained 16 trillion cubic feet of natural gas. TRA estimated that Shell would pay $520 million as the capital tax, but the money has not been paid so far. The Attorney General Dr Adelardus Kilangi told the National Assembly yesterday that the transaction was complex since it was done globally and now the government was waiting for the issue to be solved by the tax tribunal. Dr Kilangi was responding to allegations leveled by David Silinde (Momba-Chadema) during debate on the ministry of Energy budget that there was possibility of corruption to help the company evade the capital gain tax payment.