NRS And KPMG Resolve Differences over New Tax Laws
The leadership of the National Revenue Service (NRS) and top officials of KPMG Nigeria, a global professional services firm, yesterday 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.
The Executive Chairman of the NRS, Dr Zacch Adedeji, 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.
