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PERSEUS MINING GHANA LTD v. THE COMMISSIONER GENERAL

(2022) JELR 109792 (HC)

High Court  •  CM/TAX/0515/2021  •  8 Feb 2022  •  Ghana

Coram
HIS LORDSHIP JUSTICE JUSTIN KOFI DORGU

Judgement

JUDGMENT (REASONS) 

From my evaluation of the submissions on the appeal, I hold that the Applicant to me,  has been unable to show that the prices of gold were so erratic and showed a consistent  downward trend to the extent that, it would be prudent to hedge with a lower price  than the prevailing market price. This is moreso when gold is not one of the known  commodities that has the tendency to fall drastically and for a considerable period. 

Since the audit revealed a loss of income which cannot be rationalized to make  economic sense and for the fact that the Applicant was unable to debunk the assertion  of the report that the hedged price was fixed or dictated by or negotiated by the  Applicant's parent company which imports the principle of related transactions  especially as they differed considerably from what was prevailing on open market as  exhibited in Exhibits GRA 4, 4A and 4B which could reasonably be taken as arm's  length transactions or prices, I hold the view on that…

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