The_Open_Door_deel1

Notes:
TABLE 3
TAX PAYMENTS BY THE LIBERIAN
DEVELOPMENT CORPORATION 1963 - 1977
(in U.S. dollars)
Corporate Income Tax
Paid To The Government
Year of Liberia"!
1963 $ 14,000
1964 68,000
1965 38,000
1966 55,000
1967
1968 $
1969 95,000
1970 106.000 2
1971 60,000
1972 72,000
1973 $240,000
1974 175,000
1975 167,0003
1976 83,000
1977 45,000
(1) Amounts rounded to nearest thousands
(2) Excluding an additional assessment of $22,433;
(3) Excluding an additional assessment of $85,250,
S ource:
- Concession Secretariat, Ministry of Finance, Monrovia,
In spite of this, however, the distribution of power and knowledge
of international and even national loopholes remained very
inequal. By a mere change in its accounting system the company
reduced its tax liability in 1974 by more than $ 63,000. The
Government of Liberia contended the legality of this action on
formal grounds, as the Deputy Commissioner of Income Tax of the
Ministry of Finance, Johnnie Gaye told the present author in
December 1978, but never took action in this matter. The Liberian
Development Corporation has on more than one occasion resorted to
retro-active changes in the methods of accounting used, which
affected the (book) values of its investments and the statements
of income and retained earnings. In 1971 the company retroactively
adopted the equity method of accounting for its 90? interest in
The Liberia Company which had formerly been carried at a stated
value of $ 312,501 only. This change of method resulted in an