The Acting Judge of the Tax Court, Temple of Justice, presided over by Judge Peter W. Gbeneweleh, on April 14, 2021 dismissed a protest against an assessment bill of US$65,932.49 on withholding service rendered in the case involving Omega Insurance Company, through its President, Charles L. Ananaba, and the Liberia Revenue Authority (LRA), through its then Commissioner General, Elfrieda Tamba.
Judge Gbeneweleh, in his ruling, pointed out that the court holds that the Government of Liberia (GOL) cannot provide basic services to its citizenry without taxes, and the court is not in agreement with the contention of the movant that the recovery of its unpaid taxes, owed government, should await the reconstitution of the Board of Tax Appeals by the President of Liberia.
Judge Gbeneweleh added that “this is the ruling of this court—that the motion to dismiss is hereby denied and the resistance thereto sustained, and so ordered”.
He further said that RIA filed a 10-count complaint before the court on January 20, 2021, praying that the court holds the defendant, Charles L. Ananaba, liable for the total outstanding tax liability of US$65,932.49.
According to the judge, a writ of summons was issued on January 12, 2021, which was served on defendant Ananaba on January 22, 2021 by Bailiff Johanna W. Eddie of the court.
He also said that on February 22, 2021 defendant Ananaba withdrew his answer and filed an 18-count amended answer, with a motion to dismiss for lack of jurisdiction. The defendant denied the averments as contained in the plaintiff complaint.
He indicated, “As herein stated supra, an appeal from a determination of the minister to the Board of Tax Appeals is only available to taxpayers under section 59 and 60(a)(1) of the Liberia Revenue Code of 2000 as amended 2011, but not the Liberia Revenue Authority (LRA), the respondent herein. Either the taxpayers or the respondent may appeal from the ruling of said board to the Liberia Tax Court within 30 days as of the board’s decision for appellant review by the court under section 60(a)(1)and (2) of the Code.”
It can be recalled that on April 20, 2016 the Analysis, Assessment and Accounting Section of the Liberia Revenue Authority (LRA) conducted a desk audit, which was served on the Omega Insurance Company along with an assessment notice in the sum of US$34,913.30.
Court records in this case showed that the amount represented withholding for service rendered on re-insurance paid in 2015, including interest and penalty. On January 11, 2017, the LRA issued an amended Assessment Tax Bill to cover the periods January—December 2015 and January—December 2016, in the amount of US$65,932.49, including penalties and interests of US$18,453.83.
The defendant filed its objection and protest before the Objection and Protest Panel within the LRA. The Panel heard the objection and protest, and upheld the decision of the LRA, holding defendant liable in the amount of US$65,932.49 for withholding on re-insurance services.