As Revenue Code Takes Precedent Over Concession Deals
Monrovia, Liberia – In its long-running tax dispute with the Liberia Agricultural Company, the Supreme Court of Liberia has ruled in favor of the Liberia Revenue Authority, giving it a resounding legal triumph. The LRA’s stance on the application of advance income tax laws under the Revenue Code of Liberia was upheld by the Supreme Court in its Opinion dated February 12, 2026. The ruling permits the collection of US$1,598,791.61 in legitimate tax obligations in addition to upholding the Authority’s enforcement action.
The fundamental legal finding of the ruling is that the provisions of LAC’s concession agreement are not in violation with the advance income tax requirement outlined in Section 904(a)(1) of the Revenue Code. Unless specifically exempted by law, the Court upheld the enforceability of statutory tax provisions. By accomplishing this, the notion that concession agreements function within the parameters of national statutes was strengthened and the LRA’s interpretation of the law was upheld.
James Dorbor Jallah, the commissioner general, said the decision was important from an institutional and budgetary standpoint. “In this instance, the enforcement of advance income tax obligations protects US$1.59 million in public revenue.” These funds will directly assist national development goals, such as public service delivery, infrastructure, healthcare, education, and security.
As the Authority moves closer to its ambitious domestic revenue projections of more than $1 billion by 2026, he continued, the money obtained via this procedure legitimately belongs to the Liberian people and is a part of the larger endeavor to promote fiscal sustainability.
Chief Legal Counsel Bruce Quaye highlighted the ruling’s legal clarity. From the start, the Revenue Code served as the foundation for our stance. Unless the Legislature specifically specifies differently, concession agreements must function within the parameters of national law, as confirmed by the Supreme Court’s confirmation. This decision increases legal certainty and boosts trust in Liberia’s tax administration.
Margaret Krote, the Commissioner for Domestic Tax, praised the ruling as a historic precedent for taxpayers in comparable circumstances, especially businesses who have concession agreements with the Liberian government. She emphasized that the ruling affirms that no taxpayer in this group is free from having to pay income tax in advance. Commissioner Krote confirmed, “The Department plans to use this ruling to reinforce our position and enforce the collection of advance income tax from all concessionaires.”
The implications of this judgment extend beyond a single case. It establishes a firm precedent that statutory tax obligations apply uniformly to concession entities operating in Liberia. The LRA will apply the Revenue Code consistently and equally to all companies within this category, ensuring fairness, transparency, and adherence to due process. Concessionaires are therefore encouraged to review their compliance posture and align fully with the law.
The expertise and perseverance of the LRA’s technical teams and Legal Services Department are clearly evident in this instance. Through administrative procedures and judicial review, their tenacious efforts have reinforced the legitimacy of Liberia’s revenue administration system. As the Authority increases the tax base, enhances compliance, and safeguards public resources, the message stays clear and balanced: the Revenue Code will be administered fairly and expertly, and lawful tax obligations must be fulfilled.
The landmark decision demonstrates the Liberia Revenue Authority’s institutional commitment to protect the Republic’s financial interests and ensure equitable distribution of the cost of national development.
