Monrovia (Liberia)-The Governments of Liberia and Portugal have signed an agreement to exchange tax information on how to combat tax crimes.
The Tax Information Exchange Agreement (TIEA), signed in Monrovia at the weekend committed the two countries to sharing information on how to curtail tax evasion.
Liberia’s Deputy Minister of Finance for Revenues, Madam Elfreda Tamba signed on behalf of the Government of Liberia, while Portugal’s Secretary of State for Tax Affairs in the Ministry of Finance, Professor Sergio Vasques signed for his government.
Under the agreement, both Liberia and Portugal are expected to jointly eradicate tax havens, enhance the work of tax authority, reduce trade barriers, increase tax revenues and provide additional information on taxes levied on goods and services.
The (TIEA) is an initiative of the Organization for Economic Cooperation and Development (OECD) as a policy development tool to help countries around the world combat tax crimes.
Liberia is on the “gray list” of the OECD which implies that the country is a tax haven which tax payers from other countries may be using to evade taxes in their homelands.
This agreement brings to two the number of TIEAs signed between the government of Liberia and other countries.
“This is a crystal expression of our unequivocal commitment to openness, fiscal transparency, adherence to the OECD’s applicable guidelines and international laws,” Deputy Minister Tamba said.
Also in rearks at the ceremony, Professor Vasques pointed out that the deal represents the two countries’ commitment to tax transparency and the deepening of economic relations between Portugal and Liberia.
By Terence Sesay, Monday, January 17, 2011