Monrovia, Liberia – June 21, 2026–The Liberia Revenue Authority (LRA) and Sierra Leone’s National Revenue Authority (NRA) have signed a vital tax cooperation agreement aimed at strengthening cross-border tax compliance, enhancing information exchange, and combating tax evasion between the countries.
The Memorandum of Understanding (MoU) on Simultaneous Tax Examinations (STE) was signed in Freetown by LRA Commissioner General James Dorbor Jallah and NRA Commissioner General Jeneba Bangura on the sidelines of the 13th IMF AFRITAC West 2 Steering Committee Meeting.
The initiative is expected to improve tax compliance among multinational businesses and strengthen the ability of both countries to identify and address revenue leakages.
The agreement is in line with the ECOWAS Supplementary Act on Mutual Administrative Assistance in Tax Matters and establishes a framework for coordinated tax examinations involving taxpayers and business entities operating across Liberia and Sierra Leone.
Under the arrangement, both tax administrations will conduct simultaneous examinations of taxpayers with cross-border operations, transactions, or interests that may have tax implications in both jurisdictions. The initiative is intended to strengthen information sharing, enhance audit effectiveness, improve tax compliance, and support efforts to detect and prevent tax avoidance and tax evasion.
The cooperation will focus on high-risk cross-border transactions, multinational business arrangements, transfer pricing issues, illicit financial flows, unreported income, and other activities that may result in tax avoidance or revenue leakage.
The MoU also provides a framework for identifying and addressing complex international tax risks, including undeclared business activities, non-compliant tax arrangements, and transactions involving jurisdictions that may pose heightened compliance concerns.
Through the agreement, both authorities will exchange relevant information, conduct joint risk assessments, coordinate audit activities, and strengthen collaboration on matters involving taxpayers operating in both countries.
The arrangement seeks to improve the determination of taxpayers’ correct tax liabilities, facilitate the exchange of information on multinational business practices, strengthen administrative cooperation, enhance the effectiveness of cross-border audits, and reduce compliance costs for both taxpayers and tax administrations.
Another key objective is to prevent double taxation and promote the early resolution of cross-border tax disputes, thereby creating a more predictable, transparent, and business-friendly tax environment for investors and companies operating in Liberia and Sierra Leone.
The MoU establishes procedures for selecting cases for simultaneous examination, conducting joint planning exercises, coordinating audit activities, and protecting taxpayer rights in accordance with the laws and administrative practices of both countries.
Information exchanged under the agreement will be protected in accordance with applicable ECOWAS legal instruments and national laws governing taxpayer confidentiality and the use of tax information.
Speaking following the signing ceremony, LRA Commissioner General James Dorbor Jallah described the agreement as an important milestone in regional tax cooperation and a practical mechanism for strengthening domestic revenue mobilization efforts.
He noted that increasing economic integration within the region requires stronger collaboration among tax administrations to effectively address cross-border tax risks, improve compliance, and safeguard government revenues.
For her part, NRA Commissioner General Jeneba Bangura described the agreement as a demonstration of the shared commitment of Liberia and Sierra Leone to strengthening tax compliance, improving information exchange, and enhancing cooperation in addressing cross-border tax challenges.
She noted that closer collaboration between the two revenue administrations would help protect their respective tax bases, improve domestic revenue mobilization, and contribute to regional economic growth and integration.
The agreement further reinforces the commitment of both countries to implementing international best practices in tax administration while advancing ECOWAS efforts to strengthen cooperation among member states in combating tax evasion, illicit financial flows, and aggressive tax avoidance schemes.
The agreement further positions Liberia among a growing number of African countries adopting coordinated approaches to addressing cross-border tax risks and enhancing international tax cooperation.
The initiative is supported by ECOWAS as part of efforts to strengthen regional tax cooperation and combat cross-border tax evasion.
The MoU forms part of the LRA’s broader international cooperation strategy. Earlier this month, the Authority signed three landmark agreements with the National Tax Service (NTS) of the South Korea aimed at strengthening tax administration, enhancing information exchange, expanding technical cooperation, and supporting the modernization of Liberia’s tax administration.
Under the leadership of Commissioner General James Dorbor Jallah, the LRA continues to expand strategic partnerships and implement reform initiatives designed to strengthen compliance, enhance domestic revenue mobilization, improve institutional efficiency, and build a modern, intelligence-driven, and taxpayer-focused revenue administration capable of supporting Liberia’s national development agenda.