Oyedele rebuts KPMG’s flagged ‘errors’ in gazetted tax laws

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has clarified the policy intent behind Nigeria’s newly gazetted tax laws, following concerns raised by KPMG Nigeria, insisting that most issues highlighted by the firm were misunderstandings of policy objectives or disagreements with deliberate reform choices.

In a statement issued on Saturday, Oyedele said while some points raised by KPMG were useful, the bulk of the report mischaracterised the objectives and structure of the new tax framework.

“We welcome all perspectives that contribute to a shared understanding and successful implementation of the new tax laws,” the statement said, noting that “a few points raised by KPMG are useful, particularly where they relate to implementation risks and clerical or cross-referencing issues.”

However, the committee emphasised that “the majority of the publication reflected a misunderstanding of the policy intent, a mischaracterisation of deliberate policy choices, and, in several instances, repetitions and presentation of opinion and preferences as facts.”

It noted that several issues described as “errors,” “gaps,” or “omissions” by KPMG were either incorrect conclusions, matters taken out of context, or areas where the firm preferred different outcomes than those deliberately adopted.

“While it is legitimate to disagree with policy direction, disagreements should not be framed as errors or gaps,” the statement said.

The Chairman provided detailed clarifications on key provisions flagged by KPMG.

On taxation of shares and the stock market, it said the framework is “structured from 0% to a maximum of 30%, which is set to reduce to 25%,” with “99% of investors entitled to unconditional exemption.”

The statement dismissed fears of a market sell-off, noting that “any disposals in December 2025 would have benefited from the reinvestment exemption or enhanced deductions under the new law.”

On the commencement date of the laws, Oyedele said aligning strictly with accounting periods “takes a narrow view of the complex transition issues” involved in a wholesale tax reform, which spans multiple periods, audits, deductions, credits, and penalties.

Regarding indirect transfer of shares, the statement described the provision as a deliberate policy choice aligned with global best practices and BEPS initiatives, aimed at closing long-exploited loopholes by multinationals.