The issue is in gtk+ there is a workaround on the upstream bug report.
the workaround is to add it to the following to .gtkrc

style "notebook-borderless" = "default"
{
    xthickness = 0
    ythickness = 0
}
widget "TerminalWindow.*.GtkNotebook" style "notebook-borderless"

** Changed in: gnome-terminal (Ubuntu)
   Importance: Undecided => Low

** Changed in: gnome-terminal (Ubuntu)
       Status: New => Triaged

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https://bugs.launchpad.net/bugs/694468

Title:
  Unnecessary chrome when showing multiple tabs

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