Home Economy LRA Welcomes Tax Court’s Ruling -Saves US$20,000 In Revenue

LRA Welcomes Tax Court’s Ruling -Saves US$20,000 In Revenue

by newsmanager

MONROVIA: The State-owned Liberia Revenue Authority (LRA) has welcomed a recent ruling from the Tax Court, denying Eagle Electrical Corporation’s petition for a refund of approximately US$20,000.

In the March Term of Court, the Corporation filed a protest, claiming an ‘unfair increment’ in the Free On Board (FOB) value of their goods. The shipment in question included 512 bath cabinets which the corporation priced at US$3 each and 2,240 toilet accessories priced at US$2 each, imported from Brazil.

The LRA, through its Customs Assessment Unit (CAU) assessed the consignment and determined the lowest researched unit costs to be US$49 for cabinets and US$14.45 for toilet accessories, suggesting that the company had underpriced its imported goods.

During the Court’s hearings, the LRA’s legal team opposed the company’s petition over the LRA’s assessed price, arguing that all actions taken by the LRA were in strict accordance with the Liberia Revenue Code.

According to the LRA legal team, the value of the imports was determined in accordance with Section 1239(e) of the Revenue Code.

Resident Tax Court Judge U-Jay Bright, after considering arguments from both sides, concluded that there were no valid reasons to overturn the findings and decision of the LRA.

This ruling determined that Eagle Electrical Corporation is not entitled to a refund.

The LRA considers the ruling a testament to its commitment and mission to fairly, transparently, and professionally apply the laws to collect the country’s revenue.

The LRA also calls on the business community to adhere to transparency and accountability practices and avoid activities that undermine the collection of legitimate revenue for Liberia’s development.

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