Liberia and Sierra Leone have signed a landmark tax cooperation agreement aimed at cracking down on cross-border tax evasion and improving revenue collection.
The Memorandum of Understanding (MoU) on Simultaneous Tax Examinations (STE) was signed in Freetown by Liberia Revenue Authority (LRA) Commissioner General James Dorbor Jallah and National Revenue Authority (NRA) Commissioner General Jeneba Bangura on the sidelines of the 13th IMF AFRITAC West 2 Steering Committee Meeting.
The deal creates a framework for coordinated tax audits of businesses and individuals operating in both countries. It allows the two revenue authorities to exchange information, conduct joint risk assessments, and coordinate audits, particularly targeting high-risk transactions, transfer pricing, and illicit financial flows.
Both commissioners hailed the agreement as a milestone. Jallah noted that increasing economic integration within ECOWAS requires stronger collaboration to address cross-border tax risks and safeguard government revenues. Bangura added that the MoU reflects their shared commitment to protecting tax bases and improving domestic revenue mobilization.
The agreement aligns with the ECOWAS Supplementary Act on Mutual Administrative Assistance in Tax Matters and is expected to prevent double taxation and resolve disputes, creating a more predictable environment for investors.
Article and image source: allafrica.com
