Nigeria’s Federal Government has met with representatives of KPMG, a global professional services firm, to address concerns and disagreements arising from the implementation of the country’s new tax laws. The meeting, held in Abuja, follows intense debate within Nigeria’s business and professional community over the implications 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 affect businesses and taxpayers, and called for a review of the tax laws, citing “errors, inconsistencies, gaps, omissions, and lacunae” that urgently required reconsideration.
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 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.
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 KPMG team sought further clarity on the provisions of the laws and highlighted areas where recommendations could be made. The meeting marked a significant step towards resolving the disputes and ensuring a smoother implementation of the new tax laws.
The new tax laws aim to improve Nigeria’s tax system and increase revenue generation. The implementation of these laws is crucial for the country’s economic growth and development. The meeting between the Federal Government and KPMG demonstrates the government’s commitment to addressing concerns and ensuring that the tax laws are effective and fair.
The National Revenue Service has commended the KPMG team for their professional engagement and has pledged to continue working together to support effective tax administration and national economic growth. The meeting has helped to allay initial apprehensions and has paved the way for further collaboration between the government and private sector stakeholders. As Nigeria continues to implement its new tax laws, it is essential that all stakeholders work together to ensure a successful outcome.
