Liberia, Sierra Leone Signed Landmark MoU to Combat Cross-Border Tax Evasion

Monrovia, Liberia: In a significant move to strengthen regional tax administration and curb revenue losses, the Liberia Revenue Authority (LRA) and Sierra Leone’s National Revenue Authority (NRA) have signed a strategic document aimed at improving cross-border tax compliance and tackling tax evasion.

The document, a Memorandum of Understanding (MoU), on Simultaneous Tax Examinations, (STE) was signed on Friday, June 19, in Freetown, by Liberia's Revenue Boss James Dorbor Jallah, and Sierra Leone's Revenue Commissioner General Jeneba Bangura, during the 13th IMF AFRITAC West 2 Steering Committee Meeting.

The agreement establishes a framework for coordinated tax examinations involving businesses and taxpayers operating in both Liberia and Sierra Leone.

It is designed to enhance information sharing, strengthen audit effectiveness, and improve the ability of both revenue authorities to detect and address tax avoidance, tax evasion, and other forms of revenue leakage.

Aligned with the ECOWAS Supplementary Act on Mutual Administrative Assistance in Tax Matters, the initiative reflects growing regional efforts to improve cooperation among tax administrations in addressing increasingly complex cross-border tax challenges.

Under the arrangement, both countries will conduct simultaneous examinations of taxpayers whose operations, transactions, or financial interests span the two jurisdictions.

The cooperation will focus particularly on high-risk cross-border transactions, transfer pricing practices, multinational business arrangements, illicit financial flows, unreported income, and other activities that may undermine domestic revenue collection.

The MoU also provides mechanisms for joint risk assessments, coordinated audit planning, and the exchange of relevant tax information while ensuring taxpayer rights are protected in accordance with national laws and applicable ECOWAS legal instruments governing confidentiality.

Beyond strengthening compliance, the agreement seeks to improve the accuracy of tax assessments, reduce administrative burdens, and create a more predictable business environment.

It is also expected to help prevent double taxation and facilitate the timely resolution of cross-border tax disputes, providing greater certainty for investors and businesses operating in both countries.

Speaking after the signing ceremony, Liberia Revenue Authority's Commissioner General James Dorbor Jallah described the agreement as a major milestone in regional tax cooperation and an important tool for strengthening domestic revenue mobilization.

He noted that as economic integration continues to deepen across West Africa, closer collaboration among revenue administrations is essential to effectively manage cross-border tax risks, improve compliance, and safeguard public revenues.

Meanwhile, Sierra Leone's NRA Commissioner General Jeneba Bangura welcomed the agreement as a demonstration of the shared commitment of Liberia and Sierra Leone to strengthening tax administration and enhancing cooperation in addressing common tax challenges.

According to Bangura, stronger collaboration between the two institutions will help protect national tax bases, improve revenue collection, and contribute to broader regional economic growth and integration.

The agreement reinforces both countries’ commitment to international best practices in tax administration and supports ECOWAS-led efforts to combat tax evasion, aggressive tax avoidance schemes, and illicit financial flows across the region.

It also places Liberia among a growing number of African nations adopting coordinated approaches to international tax cooperation and cross-border compliance enforcement.

The initiative forms part of the LRA’s broader strategy to expand international partnerships and modernize tax administration. Earlier this month, the Authority signed three cooperation agreements with South Korea’s National Tax Service (NTS) aimed at strengthening information exchange, technical collaboration, and institutional modernization.

Under the leadership of Commissioner General James Dorbor Jallah, the LRA continues to pursue reforms and strategic partnerships focused on improving compliance, increasing domestic revenue mobilization, enhancing operational efficiency, and building a modern, intelligence-driven, and taxpayer-centered revenue administration capable of supporting Liberia’s long-term development goals.