By Ayomide Otitoju
The Federal Government on Monday held talks with senior officials of global professional services firm KPMG in Abuja to resolve concerns arising from the implementation of Nigeria’s newly enacted tax laws.
The meeting followed intense debate within the business and professional community over the implications of the new tax framework. In a recent report titled “Nigeria’s New Tax Laws: Inherent Errors, Inconsistencies, Gaps and Omissions,” KPMG Nigeria had raised concerns about several provisions of the laws, including the taxation of shares, dividend treatment, non-resident tax obligations and foreign exchange deductions, warning that these could negatively affect businesses and taxpayers.
KPMG subsequently called for a review of the legislation, citing what it described as “errors, inconsistencies, gaps, omissions and lacunae” that required urgent reconsideration.
In response to the report, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, publicly defended the Nigeria Tax Act (NTA), clarifying the policy intent of the reforms and stating that KPMG Nigeria had misunderstood aspects of the new framework.
However, during Monday’s engagement, the Executive Chairman of the Nigeria Revenue Service (NRS), Dr Zacch Adedeji, provided further clarification on areas of concern identified in the Act. The KPMG delegation, according to officials familiar with the meeting, said its earlier opinion on the tax laws had been misconstrued and expressed regret over the misunderstanding. The firm also sought additional clarity on specific provisions and highlighted areas where recommendations could be made.
Both parties acknowledged that differences in interpretation had contributed to confusion among taxpayers and agreed that continued dialogue would be necessary to address emerging issues and ensure effective implementation of the reforms.
In an update shared on X, the NRS said the KPMG team commended Dr Adedeji for his leadership and the timely rollout of the new tax laws, noting that their initial apprehensions had 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 stated.
