Let’s be honest—nobody wakes up excited to talk taxes. But if you own or run a business in Liberia, your taxes are more than just another bill. They’re the fuel that keeps our country moving—building roads, funding schools, and keeping hospitals running.
By Robert E. Smallwood, CPA, contributing writer
And while paying your fair share is your duty, here’s the part most business owners overlook: you have powerful rights as a taxpayer—and knowing them can save you money, time, and sleepless nights.
Your Tax Playbook: The Liberia Revenue Code
Think of the Liberia Revenue Code (LRC) as your official rulebook. It lays out:
- Your obligations—what taxes to pay, when, and how.
- Your rights—protections that stop the taxman from overstepping.
- The audit process—so you know exactly how the game is supposed to be played.
The golden rule?
You’re only required to pay the correct tax. Not a dollar more. Not a dollar less.
The LRA can only collect what’s legally due—nothing extra.
When the LRA Gets It Wrong
The Liberia Revenue Authority (LRA) is powerful, but it’s not above the law. If they misinterpret the tax code, ignore procedures, or assess you incorrectly, you can fight back—and you should.
Tax disputes can arise for a number of reasons. You can legitimately have a different interpretation of tax laws from LRA. This is normal and happens more often than you expect in a lot of countries. There could be differences accounting method used for determining income and/or expense or the audit process could have errors. These are potential reasons for tax disputes. As they said, “tongue and teeth can fight sometimes” so tax disputes will happen.
Business Owner’s Action Plan
How can you protect your bottom line and keep your tax affairs clean:
1️⃣ Report Accurately – File your taxes based on correct figures. Accuracy isn’t just about avoiding penalties—it builds credibility with the tax authority.
2️⃣ Keep good Records: Keep every receipt, invoice, and ledger for at least 10 years. It would save time a world of headache and time. Documentation is your number 1 defense if the LRA challenges you.
3️⃣ Respond, Don’t Ignore LRA notice? If you receive a notice, letter or assessment from the LRA, DO NOT IGNORE IT!. Review it point-by-point. Respond in writing, clearly. Quick, clear replies reduce risk, show cooperation, and prevent small issues from BIG ISSUES.
4️⃣ Call in the Experts – Remember you are a businessperson not a tax expert, seek help. Facing LRA without a tax advisor is like walking into court without a lawyer or performing brain surgery on yourself. LRA auditors are trained and experienced—you need someone equally skilled on your side.
5️⃣ Your Rights to Appeal: There may be times you and the tax auditor will not agree. The LRC has procedures to handle these times.
If you and the tax auditor don’t agree, follow these steps to appeal the matter:
Why This Matters Right to YOU
Every year, businesses lose money not because they’re dodging taxes—but because they don’t know their rights. The LRA isn’t the enemy, but it is a revenue-collecting authority. If you don’t understand the rules, you and your business will lose money, CASH$
Bottom line: Paying taxes is your duty. Protecting your rights is your obligation and sound business strategy.
About the Author
Robert E. Smallwood, CPA (US), is a tax and business advisor with decades of tax and business experience in Liberia, West Africa, and globally. He leads business and tax advisory projects with TAT Consulting Group, a tax and business consulting firm serving Liberia.
