KPMG Urges African Businesses to Transform Tax Functions

KPMG has urged businesses across Africa to reinvent their tax functions amid intensifying revenue mobilization efforts and regulatory reforms. During a webinar, Adewale Ajayi, Head of Tax Regulatory People Services at KPMG Africa, highlighted that recent legislative developments indicate a shift towards revenue expansion, necessitating a proactive approach to tax compliance.

He warned that failure to adapt could lead to severe financial penalties and reputational risks. Ajayi outlined five priority areas for strengthening tax functions, emphasizing the need for businesses to adopt technology-driven strategies and develop efficient operational models.

Olufemi Babem, Partner and Lead of Tax Transformation at KPMG West Africa, cautioned against delaying tax upgrades, as this could expose organizations to significant risks. Tania David, a technology leader at KPMG, stressed that successful tax transformation requires a rethinking of processes and data governance, moving beyond mere compliance to embedding tax into core business processes.