KPMG has clarified that its recent newsletter on Nigeria’s newly enacted tax laws was intended to support understanding and implementation of the reforms, not to criticise government policy.
This is according to a statement issued by the professional services firm on Saturday in response to what it described as varied public reactions and misinterpretations of the publication.
The firm said the clarification became necessary after observing that the newsletter was being presented in ways that did not reflect its original intent or substantive content.
Earlier, Nairametrics reported that the Presidential Fiscal Policy and Tax Reforms Committee, chaired by Taiwo Oyedele, faulted key observations made by KPMG on Nigeria’s newly enacted tax laws.
What KPMG is saying
KPMG stated that its newsletter was not designed to undermine confidence in Nigeria’s tax reforms or question the government’s fiscal direction.
Instead, it said the document was aimed at providing clarity on the interpretation and application of the newly enacted tax laws.
“For the avoidance of doubt, the purpose of the newsletter is to: facilitate clarity in the interpretation of the tax laws, enhance effective and efficient tax administration, reduce or eliminate unintended consequences or disputes, and promote confidence in the tax system by encouraging timely clarification and refinement of the tax laws,” the firm stated.
The firm stressed that its analysis was intended to assist taxpayers, businesses, and tax administrators in understanding the reforms and implementing them effectively.
KPMG described Nigeria’s recent tax reforms—now codified into law—as a significant and transformational step in the country’s fiscal and economic management.
According to the firm, if properly implemented, the reforms have the potential to improve revenue generation, strengthen tax administration, and place Nigeria on a more sustainable fiscal path.
However, the firm noted that complex legislation, particularly one as wide-ranging as tax reform, typically requires ongoing review and refinement after enactment. It explained that its newsletter highlighted areas where further clarity or adjustments may be necessary to prevent unintended outcomes or disputes during implementation.
KPMG also pointed out that post-enactment reviews and calls for legislative refinement are standard global practices and not unique to Nigeria, noting that such processes help ensure laws achieve their intended objectives without creating avoidable administrative challenges.
What you should know
In its earlier report, KPMG raised concerns over several aspects of the new tax laws, including the taxation of share disposals, commencement dates for implementation, indirect transfer of shares, VAT treatment of insurance premiums, and others.
Nigeria recently enacted new tax laws as part of broader fiscal and economic reforms aimed at improving revenue mobilisation.
Professional services firms, including KPMG, PwC, and Deloitte, often publish technical notes and commentaries to help stakeholders interpret new regulations.
They were wrong and should be humble to restate those areas they have been corrected.
This is not sufficient enough to undo the crisis they created but for the clarification by Mr. Taiwo Oyedele.
KPMG must issue a disclaimer on the aspects they wrongly pushed out there. This release is unacceptable and inadequate.
Absolutely. KPMG used words like “errors” and after being corrected, its people claimed they were only seeking clarification. Wonderful!