The Federal Government on Monday met with top officials of the global professional services firm, KPMG, to address concerns and disagreements arising from the implementation of Nigeria’s new tax laws.
The meeting, held in Abuja, came amid intense debate within the business and professional community over the implications of the new tax framework on businesses and taxpayers.
The engagement followed a report by KPMG Nigeria titled “Nigeria’s New Tax Laws: Inherent Errors, Inconsistencies, Gaps and Omissions,” in which the firm raised concerns over several provisions of the new laws.
KPMG had flagged issues relating to the taxation of shares, treatment of dividends, obligations of non-resident entities and foreign exchange deductions, warning that such provisions could negatively affect businesses and taxpayers.
The firm subsequently called for a review of the laws, arguing that the “errors, inconsistencies, gaps, omissions, and lacunae” identified in the legislation required urgent reconsideration.
Following the publication of the report, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, publicly defended the Nigeria Tax Act, insisting that the policy intent of the reform had been misunderstood.
Oyedele stated that KPMG Nigeria did not fully understand the objectives and framework of the tax reforms.
However, during Monday’s meeting, the Executive Chairman of the Nigeria Revenue Service, Dr Zacch Adedeji, provided clarifications on areas of concern raised by the firm.
The explanations were said to have helped address ambiguities in the Act and offered insight into the government’s intentions behind the reforms.
In response, the KPMG delegation noted that its earlier opinion on the new tax laws had been misconstrued and expressed regret over the misunderstanding.
The firm also sought further clarity on some provisions of the legislation and highlighted areas where professional recommendations could still be made.
Both parties acknowledged that differences in interpretation had contributed to confusion among taxpayers and agreed that continuous engagement was necessary to resolve emerging issues associated with the reforms.
The KPMG team also commended Adedeji for what it described as the effective and timely implementation of the tax reforms, noting that many of its initial apprehensions had been addressed.
In an update shared on 𝕏, the Nigeria Revenue Service stated, “The Executive Chairman of the Nigeria Revenue Service, 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 added that the firm affirmed the reforms were “both necessary and timely” and pledged continued professional engagement in support of effective tax administration and national economic growth.