FG Meets KPMG Over Concerns on New Tax Laws

Federal Government Meets KPMG Over Concerns on New Tax Laws
Adedeji clarified grey areas, easing earlier fears raised by KPMG
Both sides agreed on continued dialogue to support tax reforms

The Federal Government on Monday held a high level meeting with top officials of global professional services firm, KPMG, over concerns arising from the implementation of Nigeria’s newly introduced tax laws.

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EKO HOT BLOG reports that the meeting took place in Abuja amid growing debate within the business and professional community on how the new tax framework could affect businesses, investors and taxpayers across the country.

The engagement followed a recent report by KPMG Nigeria titled “Nigeria’s New Tax Laws: Inherent Errors, Inconsistencies, Gaps and Omissions,” which raised concerns over several provisions of the legislation. The firm had pointed to issues around the taxation of shares, dividend treatment, obligations of non resident entities and foreign exchange deductions, warning that such areas could create challenges for businesses.

KPMG had called for a review of the laws, arguing that the “errors, inconsistencies, gaps, omissions, and lacunae” identified required urgent attention to prevent unintended consequences for the economy.

Following the publication of the report, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, publicly defended the Nigeria Tax Act, stating that the policy intent of the reforms had been misunderstood. He said KPMG Nigeria did not fully grasp the objectives and framework guiding the tax changes.

However, at Monday’s meeting, the Executive Chairman of the Nigeria Revenue Service, Dr Zacch Adedeji, provided detailed clarifications on the areas raised by KPMG. The explanations were said to have addressed ambiguities in the Act and offered clearer insight into the government’s intentions behind the reforms.

In response, the KPMG delegation noted that its earlier position had been misconstrued and expressed regret over the misunderstanding. The firm also requested further clarity on some provisions and identified areas where professional input could still be useful.

Both parties agreed that differing interpretations had contributed to confusion among taxpayers and stressed the need for continuous engagement to address emerging issues.

In a statement shared on 𝕏, the Nigeria Revenue Service said, “The Executive Chairman of the Nigeria Revenue Service, Dr Zacch Adedeji, 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.”

The statement added that KPMG affirmed the reforms were “both necessary and timely” and pledged continued professional engagement to support effective tax administration and national economic growth.