Meeting Purpose
The Federal Government met with top officials of KPMG Nigeria in Abuja to address disagreements and concerns arising from the implementation of the new tax laws, which took effect on January 1, 2026. The engagement followed intense debate among professional and business groups about the implications of the reforms, including issues raised by KPMG in a critical report on the laws.
Background of the Dispute
Earlier, KPMG Nigeria released a report titled “Nigeria’s New Tax Laws: Inherent Errors, Inconsistencies, Gaps and Omissions,” highlighting perceived flaws in the legislation such as taxation of shares, dividend treatment, non-resident obligations and foreign exchange deduction issues and called for a review of the laws to correct these gaps.
Key Outcomes of the Meeting
Clarifications provided:
The Executive Chairman of the Nigeria Revenue Service (NRS), Dr. Zacch Adedeji, offered explanations on provisions of the Tax Act that had generated confusion.
KPMG adjusts stance:
During the meeting, KPMG officials acknowledged that some of their earlier comments had been misconstrued, expressed regret over misunderstandings, and clarified that they were seeking further clarity on certain provisions and where recommendations could be made.
Acknowledgement of shared goals:
Both parties agreed that differences in interpretation contributed to confusion among taxpayers, and they emphasized the importance of ongoing dialogue to resolve emerging issues related to the new tax framework.
Positive rhetoric:
The KPMG delegation commended the NRS leadership for the effective and timely implementation of the new tax laws, noting that their initial apprehensions had been significantly allayed and affirming that the reforms are necessary and timely.
Why This Matters
This meeting comes amid broader public and professional debate over the Nigeria Tax Act 2025, which consolidated and overhauled the country’s tax legislation. Critics including KPMG and some civil society and business leaders have warned that structural issues could strain compliance and economic activity. Government defenders, including presidential tax reform officials, have maintained that many criticisms stem from misinterpretations and misunderstandings of policy intent, while also acknowledging that some technical clarifications and guidance are needed during implementation.
What’s Next
Both the Federal Government (via NRS) and KPMG have signaled continued professional engagement and dialogue to ensure clarity, address technical concerns, and support effective tax administration and economic growth under the new regime.
Post a Comment
Leave a Reply