The Federal Government on Monday held talks with senior officials of global consulting firm KPMG to address concerns and differing views surrounding the implementation of Nigeria’s newly introduced tax laws.
The meeting, which took place in Abuja, followed growing debate within business and professional circles about the potential impact of the new tax regime on companies and taxpayers.
The engagement was prompted by a report issued by KPMG Nigeria titled “Nigeria’s New Tax Laws: Inherent Errors, Inconsistencies, Gaps and Omissions,” in which the firm highlighted perceived shortcomings in several aspects of the legislation.
In the report, KPMG raised concerns over issues such as the taxation of shares, dividend treatment, obligations of non-resident companies, and foreign exchange deductions, warning that these provisions could have adverse consequences for businesses and taxpayers. The firm consequently called for a review of the laws, citing what it described as errors, inconsistencies, gaps and omissions.
Reacting to the report, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, publicly defended the Nigeria Tax Act, arguing that the intent and structure of the reforms had been misunderstood. He maintained that KPMG Nigeria did not fully grasp the objectives underpinning the tax changes.
However, at Monday’s meeting, the Executive Chairman of the Nigeria Revenue Service, Dr Zacch Adedeji, offered detailed clarifications on the areas of concern raised by KPMG. The explanations reportedly helped to clear ambiguities in the Act and provided better insight into the government’s rationale for the reforms.
In response, the KPMG delegation said its earlier views on the new tax laws had been misinterpreted and expressed regret over the misunderstanding. The firm also requested additional clarification on certain provisions and pointed out areas where further professional input could be provided.
Both parties acknowledged that differing interpretations had contributed to confusion among taxpayers and agreed that sustained engagement would be essential in addressing emerging issues related to the reforms.
The KPMG team further commended Adedeji for what it described as the timely and effective rollout of the tax reforms, noting that many of its initial concerns had been resolved.
In a statement shared on 𝕏, the Nigeria Revenue Service confirmed that Dr Adedeji received KPMG’s top management team on a courtesy visit, adding that the firm praised his leadership and the implementation of the new tax laws.
According to the statement, KPMG affirmed that the reforms were “necessary and timely” and pledged continued professional collaboration to support efficient tax administration and Nigeria’s economic growth.