Liberia Government Wins US$2.3m Case Against Lone Star GSM Copmany

Liberian Chief Justice, Francis Kporkpo
Liberian Chief Justice, Francis Kporkpo

The Supreme Court has ruled that Lone Star Communications Incorporated is liable to pay tax obligation to the Government of Liberia in the amount of US$2,376,098.78.

The amount includes re-characterized taxable taxes on expatriates’ salaries amounting to US$956,786.20; withholding on non-residents, US$889,682.38 and interest of US$159,391.99 and US$370,238.21.

The high court’s decision is in response to an appeal filed by the Dunbar and Dunbar Law firm in association with now Justice Minister Frederick Cherue on behalf of Lone Star Communications against the Liberia Revenue Authority (LRA).

In its ruling on Friday, September 9, the Supreme Court affirmed that the Board of Tax and Appeal did not err in ruling that under the Revenue Code of Liberia Act of 2000, LRA has the authority to re-haracterize certain arrangements entered into by a taxpayer and other parties with taxable implication and that under the said authority, the appellee (LRA) acted properly in re-characterizing in the taxable period 2009-2011.

The high court added that the Board of Tax Appeal also did not err in disallowing the imposition of said amount on the company.

In a six-count ruling signed by all five members of the court, the court further indicated that the board did not err when it allowed the audit carried out for the period 2009 to 2011 as it was the period for which the LRA was holding the company responsible.

Meanwhile, the Supreme Court has ordered its Clerk to ensure the enforcement of its ruling against Lone Star Communication Incorporated.


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About Cholo Brooks 16944 Articles
Joel Cholo Brooks is a Liberian journalist who previously worked for several international news outlets including the BBC African Service. He is the CEO of the Global News Network which publishes two local weeklies, The Star and The GNN-Liberia Newspapers. He is a member of the Press Union Of Liberia (PUL) since 1986, and several other international organizations of journalists, and is currently contributing to the South Africa Broadcasting Corporation as Liberia Correspondent.