Monrovia – Tax collectors in Liberia are participating in a three-day meeting of the global forum on transparency and exchange of information for tax purposes.
Report by Henry Karmo – [email protected]
The meeting is the 9th forum of the technical assistance on Round 2-Peer Review and Other Global Forum Initiatives.
This engagement will further enhance local capacity to more effectively combat, inter alia, tax evasion, aggressive tax planning, illicit flow of capital, and money laundering, thereby, facilitates the collection of lawful revenues due our nation and people for the national good of all of us including the unborn.
Mbeki report released that the illicit flows out of Africa is about 90 billion. This trend must be reversed. The reversal must start with us and now.
This technical assistance, meeting according to the Liberia Revenue Authority (LRA), is important for Liberia, as the country aim to accomplish strengthening collaboration and sensitization amongst all local stakeholders and enhance preparedness of the country to ensure passage of the Round 2-Peer Review to avoid the blacklisting of Liberia for lack of transparency in financial matters and.
Madam Alfreda Tamba commissioner general of the LRA said: “To strengthen the capacity of LRA in the field of exchange of information for tax matters.The field is growing rapidly and the LRA needs to hurriedly catch up and to also pass the Round Two Peer review in 2018. We must prepare for the next round.
Liberia is committed to amending the applicable laws to meet the Global Forum standard on bearer shares including transparency of information and also to facilitate the exchange of information in tax matters.
“As a demonstration of Liberia’s commitment, our Country ensured its passage to Phase II of the Forum’s standards in June 2016.
The review of Phase II compliance is scheduled for June of 2018. In order to enable a seamless passage, we have embarked on the following: Establishment of the Exchange of Information Office in the Competent Authority – the Domestic Tax Department and development of the relevant manuals and related staff training.”
Madam Tamba in further comments also said, the Intent to join the African Tax Administration Forum, (ATAF) Agreement of Mutual Assistance in Tax Administration Matters (AMATAM).
She also disclosed that the drafting of second component of the Business Corporation Act that will address the policy direction of the use of bearer shares by beneficial owners of foreign maritime companies and the implementation there of the new legal framework.
The key stakeholders collaborating on these critical national matters are the Law Reform Commission, Liberia Maritime Authority, Ministry of Finance and Development Planning, Liberia Revenue Authority, Ministry of Commerce, and the Ministry of Justice. “There are many advantages to the automatic exchange of information,” she added.
She named as advantages to the automatic exchange of information; the Detection of tax evasion and off-shore wealth, Deterrence from future non-compliance and encourages timely compliance by taxpayers and Support to domestic synergies among tax administrators in developing countries in their domestic resource mobilization strategies as the automatic exchange of information something she said is a new experience for Liberia.
Madam Tamba stressed the need for LRA to acquire the necessary information technology infrastructure, and ensure the passage in collaboration with MFDP of the legislative framework that will facilitate the automatic exchange of information in line with the new standard.” LRA will be forwarding these policy reform proposals to the MFDP,” she added.
She disclosed that the LRA has since its establishment received two requests from India but LRA has submitted one response according to her the establishment of the Unit in Domestic Tax Department and finalization of the necessary operational documentations that will facilitate the actualization on its part of the various Tax Information Exchange Agreements.
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