The Federal Government Monday met with top officials of a 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 Nigeria’s business and professional community over the implications of the new tax framework.
KPMG Nigeria, in a report titled “Nigeria’s New Tax Laws: Inherent Errors, Inconsistencies, Gaps and Omissions,” had expressed concerns over some aspects of the laws, including the taxation of shares, dividend treatment, non-resident obligations, and foreign exchange deductions, and warned that these could affect businesses and taxpayers.
It then called for a review of the tax laws, noting that the “errors, inconsistencies, gaps, omissions, and lacunae” urgently required reconsideration.
Following the spotlight on the tax laws by KPMG, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, defended the Nigeria Tax Act (NTA) and clarified the policy intent, stating that KPMG Nigeria did not understand the reform.
However, in an update, the Executive Chairman of the National Revenue Service (NRS), Dr Zacch Adedeji, during the meeting, clarified some areas of concern in the new Act.
While the KPMG team noted that their earlier opinion on the new tax laws had been misconstrued and expressed regret over the misunderstanding, it was said to have sought further clarity on the provisions of the laws and highlighted areas where recommendations could be made.
Both parties acknowledged that differences in interpretation had contributed to confusion among taxpayers and agreed that sustained dialogue was necessary to address emerging issues.
The team also commended the Executive Chairman for the effective and timely implementation of the reforms and noted that their initial apprehensions had been significantly allayed.
“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.
