FREETOWN, Sierra Leone — In a major step toward strengthening regional tax administration and closing loopholes exploited by tax evaders, the Liberia Revenue Authority (LRA) and Sierra Leone’s National Revenue Authority (NRA) have signed a landmark agreement aimed at enhancing cooperation in the fight against cross-border tax fraud and illicit financial activities.
The Memorandum of Understanding (MoU) on Simultaneous Tax Examinations (STE), signed in Freetown, establishes a framework for the two neighboring countries to jointly examine tax matters involving businesses and individuals operating across both jurisdictions. The agreement is expected to significantly improve tax compliance, facilitate information sharing, and strengthen efforts to detect and prevent revenue leakages that undermine economic development.
The agreement was signed by LRA Commissioner General James Dorbor Jallah and NRA Commissioner General Jeneba Bangura during a ceremony attended by tax officials and regional stakeholders committed to advancing stronger fiscal governance across West Africa.
Under the terms of the partnership, both revenue authorities will collaborate on coordinated tax examinations, joint risk assessments, and the exchange of relevant tax information to identify and address cases of tax evasion, aggressive tax avoidance, and other cross-border financial irregularities.
Officials from both countries emphasized that the initiative represents a proactive response to the increasingly complex nature of modern business operations, where multinational companies and cross-border enterprises often operate across multiple jurisdictions. By working together, Liberia and Sierra Leone aim to ensure that taxes owed are properly assessed, reported, and collected in accordance with national laws and international standards.
The agreement is also expected to strengthen oversight of multinational corporations, improve transparency in cross-border transactions, and enhance the capacity of both countries to combat illicit financial flows that deprive governments of much-needed revenue for national development.
Revenue authorities say the partnership will contribute directly to improved domestic revenue mobilization, enabling both governments to generate additional resources for critical sectors such as education, healthcare, infrastructure, and public services.
Beyond its fiscal benefits, the agreement is viewed as a significant contribution to regional economic integration. By harmonizing aspects of tax administration and increasing cooperation between neighboring revenue institutions, Liberia and Sierra Leone are helping to create a more predictable and transparent business environment throughout the sub-region.
Speaking during the signing ceremony, LRA Commissioner General James Dorbor Jallah described the agreement as a milestone in regional tax cooperation and a practical tool for improving tax compliance.
According to Commissioner General Jallah, stronger collaboration between revenue authorities is essential in addressing the growing challenges posed by cross-border tax evasion and other forms of financial misconduct that undermine economic growth and public trust.
He noted that the agreement reflects Liberia’s commitment to adopting innovative approaches to tax administration while strengthening partnerships that enhance institutional effectiveness and accountability.
For her part, NRA Commissioner General Jeneba Bangura welcomed the partnership as an important step toward deepening cooperation between the two countries.
She emphasized that the agreement demonstrates the shared determination of both institutions to improve information exchange, strengthen compliance mechanisms, and maximize revenue collection through collaborative efforts.
Bangura further noted that effective tax administration requires strong regional partnerships, particularly as businesses increasingly operate across national borders and financial transactions become more complex.
The initiative is being supported by the Economic Community of West African States (ECOWAS), which has been promoting greater regional cooperation among tax administrations as part of broader efforts to combat tax evasion, improve revenue collection, and strengthen economic governance throughout West Africa.
The agreement comes amid growing efforts by the Liberia Revenue Authority to modernize its operations and expand international partnerships aimed at improving efficiency and compliance.
Earlier this month, the LRA signed three separate strategic agreements with South Korea’s National Tax Service (NTS) focused on enhancing tax administration, strengthening information exchange systems, and supporting institutional modernization initiatives.
Those agreements were widely viewed as part of Liberia’s broader strategy to leverage international expertise and technological innovation to improve tax collection and service delivery.
Under the leadership of Commissioner General James Dorbor Jallah, the Liberia Revenue Authority has continued to pursue reforms designed to strengthen compliance, enhance operational efficiency, expand revenue generation, and build stronger relationships with international and regional partners.
Observers believe the latest agreement with Sierra Leone represents another important milestone in those efforts and signals a growing commitment by both countries to work collectively in addressing tax-related challenges that transcend national borders.
As Liberia and Sierra Leone deepen cooperation through the new framework, officials expect the partnership to contribute significantly to more effective tax administration, stronger revenue performance, and improved fiscal transparency, while reinforcing regional efforts to combat tax evasion and promote sustainable economic development.
