Cellcom Liberia, GOL Locked In Nearly U.S.300, 000 Tax Duel
Liberia’s Tax Court has ruled that raffle draws constitute gambling in a case filed against the GSM company Cellcom for allegedly failing to remit 30% of the total amount in its 2009 raffle draws that totaled US299, 850.09. Cellcom, court documents reveal that it contends that its raffle draws were mere sales promotions and not gambling as the Government claimed.
Court documents further reveal that the Ministry of Justice and the mobile company have been locked in legal wrangles over the issue, with the mobile company insisting that riffle draws do not constitute gambling from which proceeds must be taxed.
Cellcom defined gambling, court documents say, as 'swaggering of money or something of material value on an event with uncertain outcome with the primary intent of winning additional money or material goods." The court disagreed, and the two parties were expected to hold a pre-trial conference Monday.
Sources say the outcome of the case will set a precedent in the government's tax collection crusade in which many big names are said to be on the list.