The Federal Government on Monday held a meeting with senior officials of global professional services firm, KPMG, to resolve concerns and disagreements linked to the implementation of Nigeria’s new tax laws.
The Abuja meeting followed sustained debate within Nigeria’s business and professional circles over the impact of the newly introduced tax framework.
KPMG Nigeria had earlier raised issues in a report titled “Nigeria’s New Tax Laws: Inherent Errors, Inconsistencies, Gaps and Omissions,” highlighting concerns around share taxation, dividend treatment, obligations of non-residents, and foreign exchange deductions, warning that the provisions could negatively affect businesses and taxpayers.
The firm subsequently called for a review of the tax laws, stressing that the “errors, inconsistencies, gaps, omissions, and lacunae” required urgent reconsideration.
Following the attention drawn to the laws by KPMG, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, defended the Nigeria Tax Act (NTA), explaining the policy direction and stating that KPMG Nigeria misunderstood the reform.
Providing further clarification at the meeting, the Executive Chairman of the National Revenue Service (NRS), Dr Zacch Adedeji, addressed some of the contentious areas in the new Act.
While the KPMG delegation said its earlier position had been misconstrued and expressed regret over the misunderstanding, it sought additional clarification on specific provisions and pointed out areas where recommendations could still be made.
Both sides acknowledged that differing interpretations had contributed to confusion among taxpayers and agreed that continuous engagement was necessary to resolve emerging concerns.
The KPMG team also praised the Executive Chairman for the effective and timely rollout of the reforms, noting that their earlier concerns had been largely resolved.
“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.
“They affirmed that the reforms are both necessary and timely, and pledged continued professional engagement in support of effective tax administration and national economic growth,” the NRS said in an update on X.