General News

Breaking News

Lone Star GSM Company to pay over US$2m to Gov’t

Joseph T. Koon/Benjamin S. Taingay
Justices of the Supreme Court of Liberia
Justices of the Supreme Court of Liberia

MONROVIA, LIBERIA-The Supreme Court of Liberia has ruled that Lone Star Communications Incorporated is liable to settle tax obligation to the Liberian Government.

The Court is holding GSM Company liable to pay over two million United States Dollars (over US$2,000,000.00).

The amount includes re-characterized taxable taxes on expatriates’ salaries amounting to a little over US$900.00 and withholding of taxes on non-residents’ salaries amounting to more than US$800.00.

The tax obligation also includes interests of over US$150,000.00 and more than US$300,000.00, respectively.

The court’s decision is in response to an appeal filed by the Dunbar and Dunbar Law Firm, in association with Cllr. Frederick Cherue (now Justice Minister).

The Law firm and Cllr. Cherue had filed the appeal to the court, on behalf of Lone Star Communications, against the Liberia Revenue Authority (LRA).

In its ruling, the Supreme Court affirmed that the Board of Tax Appeal did not err in its ruling, because it said the Board acted in line with the Revenue Code of Liberia Act of 2000.

The Revenue Code of Liberia Act of 2000 gives the LRA the authority to re-characterize certain arrangements entered into by a taxpayer and other parties with taxable implication.

It also said, in line with the mandate, the appellee (LRA) acted properly in re-characterizing in the taxable period 2009-2011.



Copyright 2012 All Rights Reserved.