The Nigerian government has met with representatives from KPMG, a global professional services firm, to address concerns regarding the country’s new tax laws. The meeting, held in Abuja, aimed to resolve disagreements and clarify issues arising from the implementation of the new tax framework.
KPMG Nigeria had previously expressed concerns over certain aspects of the laws, including taxation of shares, dividend treatment, non-resident obligations, and foreign exchange deductions. The firm warned that these could have adverse effects on businesses and taxpayers, and called for a review of the tax laws.
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, had defended the Nigeria Tax Act, stating that KPMG Nigeria did not fully understand the reform. However, during the meeting, the Executive Chairman of the National Revenue Service, Dr. Zacch Adedeji, clarified some areas of concern in the new Act.
The KPMG team noted that their earlier opinion on the new tax laws had been misconstrued and expressed regret over the misunderstanding. They 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 meeting marked a significant step towards resolving the disputes and ensuring effective implementation of the new tax laws. The KPMG team commended the Executive Chairman for the timely implementation of the reforms, noting that their initial apprehensions had been significantly allayed. The reforms are seen as necessary and timely, and KPMG pledged continued professional engagement in support of effective tax administration and national economic growth.
The development is crucial for Nigeria’s business and professional community, which has been debating the implications of the new tax framework. The government’s willingness to engage with stakeholders and address concerns is expected to boost confidence in the tax system and promote a more favorable business environment. As the country continues to implement the new tax laws, ongoing dialogue and collaboration between the government and stakeholders will be essential for ensuring a smooth transition and minimizing potential disruptions.
