Tax Reform In Focus As Government Meets KPMG
By FIDELUS ZWANSON
FG–KPMG Talks Highlight Challenges of Implementing Nigeria’s Tax Reforms
Consultation Amid Controversy
THE Federal Government’s meeting with KPMG officials in Abuja underscores the complexities surrounding the rollout of Nigeria’s new tax laws. The engagement comes against the backdrop of widespread debate among businesses and tax professionals following KPMG Nigeria’s critical report on the reforms.
The report questioned the coherence of several provisions and urged a review to address what it described as gaps and inconsistencies.
Professional Concerns and Market Reaction
KPMG’s analysis raised red flags over how the new laws treat share taxation, dividends, non-resident entities, and foreign exchange deductions. Analysts noted that such concerns, if left unresolved, could affect investor sentiment and create uncertainty for taxpayers navigating the new regime.
The firm’s call for review amplified scrutiny of the reforms at a time when the government is seeking to boost revenue and improve fiscal sustainability.
Policy Defence and Technical Engagement
Responding to the criticisms, Taiwo Oyedele defended the Nigeria Tax Act, stating that its objectives had been misunderstood. He emphasized that the reforms aim to simplify tax administration and eliminate inefficiencies.
During the meeting, Dr. Zacch Adedeji addressed technical questions raised by KPMG, offering explanations on how the NRS intends to apply and enforce the new provisions.
Bridging Interpretation Gaps
KPMG officials reportedly noted that their earlier opinion had been misconstrued and expressed regret over the misunderstanding. They sought further clarification on certain provisions and indicated willingness to provide recommendations to improve clarity and compliance.
Both parties agreed that differing interpretations had fueled confusion and that continuous dialogue would be essential as implementation progresses.
Looking Ahead
In a statement, the NRS said the KPMG delegation praised the leadership of the revenue service and acknowledged that many of their initial concerns had been addressed. The firm affirmed its support for the reforms and committed to ongoing professional collaboration aimed at strengthening Nigeria’s tax system and economic growth.
