KPMG and State Revenue Authorities Meet to Resolve Technical Disputes Over New Tax Laws
KPMG Meets with state Revenue Authorities Over New Tax Laws
Professional services firm KPMG Nigeria and the Network of Revenue Secretaries (NRS) have convened a high level consultative meeting to address growing concerns regarding the interpretation and implementation of recently enacted tax laws. The dialogue seeks to harmonise the perspectives of private-sector consultants and state tax administrators to ensure a more predictable and efficient fiscal environment for businesses operating in Nigeria.
Addressing Regulatory Ambiguities
The introduction of new tax legislation has created significant debate between taxpayers and administrative bodies regarding specific provisions in the Finance Acts and related circulars. KPMG and the NRS focused on identifying clauses that lack clarity, particularly those concerning the taxation of digital services, withholding tax applications, and the jurisdictional boundaries of state versus federal revenue authorities.
According to stakeholders at the meeting, these ambiguities have led to instances of double taxation and inconsistent enforcement across different states. By establishing a shared understanding of the legal text, the groups intend to reduce the frequency of tax audits and litigation, which currently place a significant administrative burden on both the public and private sectors.
Enhancing Revenue Mobilisation Efficiency
The NRS, representing the technical leadership of State Internal Revenue Services (SIRS), emphasised that the goal of recent reforms is to broaden the tax base and improve revenue collection without stifling economic growth. However, professional advisors from KPMG argued that without clear implementation frameworks, the new laws could deter foreign direct investment and complicate compliance for multinational enterprises.
The discussions highlighted the need for the NRS to issue more comprehensive explanatory notes and standard operating procedures. This collaborative approach aims to align state-level practices with national fiscal objectives, ensuring that revenue mobilisation remains sustainable and transparent.
Strategic Focus on Technology and Compliance
A significant portion of the deliberation centered on the digitisation of tax administration. Both parties acknowledged that the successful rollout of the new laws depends on the integration of technology to track transactions and automate filings. KPMG highlighted that while technology simplifies compliance, the underlying legal framework must be robust enough to handle the complexities of modern commerce, including cross-border trade and the gig economy.
The NRS affirmed its commitment to working with professional bodies to refine these digital systems. By incorporating feedback from tax experts, the revenue secretaries aim to create a "taxpayer-friendly" ecosystem that encourages voluntary compliance through simplified processes and reduced human interference.
The engagement between KPMG and the NRS represents a critical step toward institutionalising a consultative approach to tax reform in Nigeria. As the government continues to seek ways to increase the tax-to-GDP ratio, the resolution of these legal debates is paramount. Stakeholders expect that the outcomes of this meeting will inform future legislative amendments and provide the certainty required for long-term fiscal planning by investors and policymakers alike.
