The Federal Government on Monday held talks with senior officials of global professional services firm KPMG to address concerns and disagreements arising from the implementation of Nigeria’s new tax laws.

The meeting, which took place in Abuja, followed intense debate within Nigeria’s business and professional communities over the implications of the new tax framework.

KPMG Nigeria had, in a report titled Nigeria’s New Tax Laws: Inherent Errors, Inconsistencies, Gaps and Omissions, raised concerns about several aspects of the laws. These included the taxation of shares, dividend treatment, obligations of non-resident entities, and foreign exchange deductions, warning that the provisions could adversely affect businesses and taxpayers.

The firm subsequently called for a review of the tax laws, noting that the identified “errors, inconsistencies, gaps, omissions, and lacunae” required urgent reconsideration.

In response to the issues raised, 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 had misunderstood the reform.

However, in an update following the meeting, the Executive Chairman of the Nigeria Revenue Service (NRS), Dr. Zacch Adedeji, clarified several areas of concern in the new Act.

While the KPMG delegation noted that its earlier opinion on the tax laws had been misconstrued and expressed regret over the misunderstanding, it sought further clarification on specific provisions and highlighted areas where recommendations could be made.

Both parties acknowledged that differing interpretations of the law had contributed to confusion among taxpayers and agreed that sustained engagement would be necessary to address emerging issues.

The KPMG team also commended Dr. Adedeji for the effective and timely implementation of the reforms, noting that their initial apprehensions had been significantly allayed.

In a statement shared on X, the NRS said: “The Executive Chairman of the Nigeria Revenue Service (NRS), 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.

“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.”