The Income Tax Board of Appellate Commissioners of the National Revenue Authority (NRA) yesterday delivered judgment against a prominent Lebanese Businessman Toufic Houballah of Malama Thomas Street in Freetown and ordered him to pay Le2.8billion Leones (Le2, 885,682,299) for business income and property income within 30 days.
Toufic Houballah owner of properties situated at 19 and 21 Malama Thomas, 44 Sani Abacha Street and 60d Main Road Calaba Town failed to pay property taxes owed to the NRA over many years.
After an NRA assessment of Toufic Houballah’s properties since January 1994 to July 2014, the appellant was of the view that a person whose business is that of ‘holding’ and ‘letting’ out properties is not allowed the 20% deduction under section 120 of the income tax Act, 2000 as amended.
Toufic Houballah challenged the NRA property tax assessment through the Income Tax Board of Appellate Commissioners of the National Revenue Authority for him to pay the sum of Le 540,971,570 and not the sum of Le 3,039, 682,919 that was put forward by the National Revenue Authority the respondent.
Toufic Houballah the appellant was represented by Lawyer Alhaji M. Kamara and Lamin John Kamara while the NRA (respondent) was represented by Lawyer Tufflo Fynn, Dr. Sheku Kamara and Mr. O Browne.
Reading the judgment the Board Chairman and commissioner of the Income Tax Board of Appellate Commissioners of the National Revenue Authority Lawyer James O Fofanah said it was proved based on receipts received by the NRA that the total rent collected for each of the properties in question was above the exempt threshold set by law which was Le 1,500,000 now Le 1,800,000.
Toufic Houballah told the Income Tax Board of Appellate Commissioners of the National Revenue Authority Board of Commissioners that there are 8 shops on 44 Sani Abacha Street six of them are paying six thousand United States Dollars (USD$6,000) per year, one small shop is paying four thousand United States Dollars (USD$4,000) the security post is paying one thousand five hundred united states dollars (USD$1,500) and the biggest shop is paying twelve thousand dollars (USD$12,000) since the 90’s
The Income Tax Board of Appellate Commissioners found out that all the properties owned by Toufic Houballah he is collecting thousands of dollars exceeding the NRA threshold for property threshold taxes.
According to the Income Tax Board of Appellate Commissioners the National Revenue Authority has been very accommodating to the appellant Toufic Houballah just to encourage him to pay his taxes appropriately but he failed to make use of the opportunities granted him.
The Board said in the judgment that the arguments of Toufic Houballah is one of those businessmen in society who are in the habit of willfully or deliberately refusing to pay taxes.
The Board also believes that some businessmen connive with certain unscrupulous NRA officials to out rightly avoid paying their taxes to the detriment of the Government and people of Sierra Leone.
The Income Tax Board of Appellate Commissioners has stated that there certainly had to be an end to the negative conduct of businessmen and women in the payment of taxes.
The Income Tax Board of Appellate Commissioners also instructed the National Revenue Authority to take steps to properly assess the properties of Toufic Houballah owner of properties situated at 19 and 21 Malama Thomas, 44 Sani Abacha Street and 60d Main Road Calaba Town with a view to making the correct assessment of the taxes.
The appellant Toufic Houballah told his lawyer Ahaji M Kamara not to appeal the judgment at the High Court of Sierra Leone and they will engage NRA on a payment plan
By Saidu Bah
Friday October 07, 2016