The Federal Government on Monday held talks with top officials of global professional services firm, KPMG, to address concerns and disagreements arising from the implementation of Nigeria’s new tax laws.
The meeting, which took place in Abuja, followed intense debate within the country’s business and professional community over the implications of the new tax framework.
KPMG Nigeria had earlier raised concerns in a report titled “Nigeria’s New Tax Laws: Inherent Errors, Inconsistencies, Gaps and Omissions,” warning that certain provisions could negatively affect businesses and taxpayers. The firm highlighted issues around the taxation of shares, dividend treatment, non-resident obligations, and foreign exchange deductions, calling for a review of the laws.
According to KPMG, the “errors, inconsistencies, gaps, omissions, and lacunae” identified in the new tax regime required urgent reconsideration to prevent unintended consequences.
In response to the report, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, defended the Nigeria Tax Act (NTA), stating that KPMG Nigeria had misunderstood the intent of the reforms and clarifying that the policy objectives were aligned with long-term fiscal sustainability.
However, during the meeting, the Executive Chairman of the Nigeria Revenue Service (NRS), Dr Zacch Adedeji, addressed several areas of concern and provided clarifications on key provisions of the Act.
The KPMG delegation reportedly acknowledged that its earlier position had been misconstrued and expressed regret over the misunderstanding. The firm also sought further clarity on the implementation of the laws and highlighted areas where constructive recommendations could be made.
Both parties agreed that differences in interpretation had contributed to confusion among taxpayers and stressed the need for continuous engagement to address emerging issues as the reforms are implemented.
The KPMG team commended the NRS leadership for the effective and timely rollout of the reforms, noting that many of their initial concerns had been significantly addressed.
In an update shared on X, the NRS stated that the meeting was cordial and productive.
“The Executive Chairman of the Nigeria Revenue Service (NRS), Dr Zacch Adedeji, today received a delegation of top management from KPMG on a courtesy visit. The KPMG executives commended the Executive Chairman for his leadership and the timely implementation of the new tax laws, noting that their initial apprehensions have been significantly allayed,” the statement read.
The update added that KPMG affirmed the reforms were necessary and timely, and pledged continued professional engagement in support of effective tax administration and Nigeria’s economic growth.
