Al-Babtain says appeal rejected for SAR 32M Zakat differences

Logo of Al-Babtain Power and Telecommunications Co.

Al-Babtain Power and Telecommunication Co. announced that the Zakat, Tax and Customs Authority (ZATCA) issued a Zakat assessment for 2015 to 2018, resulting in Zakat differences of SAR 32 million, according to a statement to Tadawul.

The company submitted an objection to the General Secretariat of Tax Committees and the Committee for Settlement of Tax Violations and Disputes issued a decision in favor of Al-Babtain. However, ZATCA filed an appeal with the General Secretariat of Tax Committees and the decision was upheld in favor of the authority.

Al-Babtain indicated that it took all necessary procedures and introduced an appeal against the decision to the Committee for Settlement of Tax Violations and Disputes. The company submitted all supportive documents for the appeal, but it was rejected on Feb. 5. Accordingly, The decision became final for the SAR 32 million Zakat differences for 2015 to 2018.

The company also noted that the settlement is not expected to have a material impact on its financial results, as part of the assessed differences have been provided for earlier.