The Judge of the Tax Court, Temple of Justice, Peter W. Gbeneweleh, on April 23, 2021 in the case involving Afric Diam Company, thru its Chief Executive Officer, Mustapha Tounkara, movant, and the Liberia Revenue Authority (LRA) Commissioner General, Thomas Doe Nah, respondent, denied a motion to dismiss filed by lawyers of the movant.
Judge Gbeneweleh, in his ruling, pointed out that the court holds that taxes are essential for national development in any country, including Liberia; as such, the court is not in agreement with the contention of the movant that the recovery of its unpaid taxes due government should await the reconstitution of the Board of Tax Appeals by the President of Liberia.
The judge told both parties in court that the issuance of a writ of summons, which brought the movant under the jurisdiction of the court, is an assumption of its original jurisdiction over the tax matter in the absence of a functional and operation Board of Tax Appeals for the purpose of assessing and collecting government’s revenue.
Judge Gbeneweleh further said that the court also holds that the matter is not before the court for judicial review of the ruling of the objection and protest panel of the LRA in the absence of the Board of Tax Appeals; rather, it assumes original jurisdiction upon the complaint filed by the plaintiff to hear the tax matter on its merits. He indicated that the court’s recourse of section 12 (b) and (c) of the Liberia Revenue Code of 2000, as amended 2011, which the court quoted for the benefit of the ruling: “Judgment Debt: If any person fails to pay tax when due, the minister may file, with the clerk or registrar of court of competent jurisdiction, a statement certified by the minister setting forth the amount of tax due by the person. The statement shall be treated for all purpose as a civil judgment lawfully given in that court in favor of the minister for a liquid debt in the amount specified in the statement. The court shall issue a writ of execution in respect to the debt against the defaulter.”
In the case under review, the defendant (taxpayer) filed a complaint before the panel against the payment of the assessed bill herein stated above. The plaintiff filed an answer to the defendant’s complaint before the panel, and the defendant filed a reply upon which pleadings before the panel rested. The protest and objection panel of the Liberia Revenue Authority (LRA) confirmed the Audit Report and held the defendant (taxpayer) liable for the payment of assessed bill of US$2,517,535.52 owed the Government of Liberia (GOL) for the taxable periods 2011—2015.
On October 24, 2017, the defendant herein filed an appeal to the Board of Tax Appeals, along with an appeal bond of US$3,776,303.28, which was recorded and confirmed by the court, and the parties before the court also admitted that the Board of Tax Appeals before which defendant appealed is currently undetermined, as it has not been reconstituted by the President of Liberia since 2018.
It can be recalled that the Audit Division within the Liberia Revenue Authority (LRA), audited the respondent for a taxable periods 2011—2015 and thereafter submitted its audit report to the taxpayer, the respondent herein, in may 2017, with a tax bill of US$2,517,535.52. The respondent filed an objection and protest with the objection and protest panel within the LRA on May 22, 2017.