Financial Crime World

Title: British Businessman Robert Baines Accused of Tax Evasion in Liberia: A Case of Hidden Offshore Companies

Background

  • Tax evasion is a significant issue in Liberia, with individuals and corporations, including foreigners, establishing companies without declaring their true value to the government
  • Africa loses billions of dollars annually to tax evasion, which could otherwise improve living conditions and provide essential services

The Practice of Tax Evasion

  • Involves deliberate misrepresentation of financial affairs to tax authorities
  • Techniques include underreporting income, profits, or gains, and overstating deductions

Robert Baines and the Case of Prometheus International Ltd

Shell Company in a Tax Haven

  • In 2013 and 2014, Baines, a British national, listed his address as Switzerland but established a shell company, Prometheus International Ltd, in the Seychelles
  • Intended for commodity trading, mining, construction, and raw land cleaning

Use of Nominee Shareholder

  • Made ownership difficult to trace through use of a nominee shareholder

Opening of a Bank Account

  • Opened a bank account for Prometheus International at Euro Pacific Bank in St Vincent and the Grenadines
  • Claimed funds were from assignments made through RB Group in Liberia and other European work

Connections to Liberia, Sierra Leone, and European Countries

  • Leaked documents revealed connections between companies linked to Prometheus International and Liberia, Sierra Leone, and European countries

Anticipated Revenue

  • Anticipated half a million dollars in the first year for Prometheus International Ltd

Allegations of Tax Evasion

Storming of the Compound

  • In 2015, Liberian authorities, along with the Liberia National Police (LNP) and the Paynesville Magisterial court sheriff, stormed the compound of Robert Baines and the RB Group on allegations of tax evasion

Seizure of Documents

  • The Liberia Revenue Authority (LRA) seized documents and later named the RB Group as one of several companies involved in significant tax compliance cases in their 2016 Public Expenditure and Financial Accountability Assessment (PEFA) report

Seizure of Containers

  • One of 56 firms with containers seized for non-payment of tax at the APM Terminal

Tax Appeal

  • In 2015, the RB Group filed an appeal against a US$639,165.91 tax bill
  • Argued that LRA had improperly computed depreciation allowance, income, and advance taxes withheld

The Current Status of the Case

No Reply from Robert Baines

  • Efforts to contact Robert Baines, including reaching out to his LinkedIn and Gmail accounts, have been unsuccessful regarding the allegations and leaked documents

Investigation under the Pandora Papers

  • Investigation into these matters was conducted within the framework of the Pandora Papers, coordinated by the ICIJ and CENOZO