The leadership of the National Revenue Service (NRS) and top officials of KPMG Nigeria, a global professional services firm, on Monday held a high-level meeting to address concerns and disagreements arising from the implementation of Nigeria’s new tax laws.
The meeting, which took place in Abuja, came amid an intense debate within Nigeria’s business and professional community over the implications of the new tax framework, which is among the most ambitious fiscal reforms in recent years.
In a report titled: “Nigeria’s New Tax Laws: Inherent Errors, Inconsistencies, Gaps and Omissions”, KPMG Nigeria had expressed concerns over some aspects of the laws, including the taxation of shares, dividend treatment, non-resident obligations, and foreign exchange deductions, and warned that these could affect businesses and taxpayers.
Besides, KPMG called for a review of the tax laws, noting that the errors, inconsistencies, gaps, omissions, and lacunae urgently required reconsideration to ensure the stated objectives were met.
But the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, defended the Nigeria Tax Act (NTA) and clarified the policy intent, stating that KPMG Nigeria did not understand the reform.
However, Metrobusinessnews.com (MBN) gathered that the visit was prompted by KPMG’s request for clarification on specific provisions of the laws following the backlash that greeted its initial assessment.
MBN further gathered that the firm acknowledged that its earlier position had generated controversy and wanted to jse the opportunity for further clarification and possibly normalise the relationship.
“It was obvious that Oyedele was bitter about, what he perceived as ‘open confrontation’ from the firm and professional colleagues, to which KPMG was said to have expressed determination to clear the misunderstanding.
The delegation sought further clarity on the provisions of the laws and highlighted areas where they believe recommendations could still be made,” MBN gathered
READ ALSO:FG Reacts To KPMG’s Criticisms Of Multiple Errors, Gaps In Newly Enacted Tax Laws
Consequently, the Executive Chairman of the NRS, Dr ZacchAdedeji, used the meeting to clarify some grey areas in the new Act, while the KPMG team noted that their earlier opinion on the new tax laws had been misconstrued and expressed regret over the misunderstanding.
The KPMG team was said to have sought further clarity on the provisions of the laws and highlighted areas where recommendations could be made. The team also commended the Executive Chairman for the effective and timely implementation of the reforms and noted that their initial apprehensions had been significantly allayed.
“The Executive Chairman of the Nigeria Revenue Service (NRS) Dr. ZacchAdedeji, today received a delegation of top management from KPMG on a courtesy visit. The KPMG executives commended the Executive Chairman for his leadership and the timely implementation of the new tax laws, noting that their initial apprehensions have been significantly allayed.
“They affirmed that the reforms are both necessary and timely, and pledged continued professional engagement in support of effective tax administration and national economic growth,” the NRS said in an update on X.
Both parties acknowledged that differences in interpretation had contributed to confusion among taxpayers and agreed that sustained dialogue was necessary to address emerging issues.