The Saudi British Bank (SABB) said it would have to pay an additional Zakat claim of SAR 433 million for the years 2005-2009, after the General Authority of Zakat and Tax (GAZT) applied a new accounting method for banks' long-term investments.
The additional levy covers the years until 2009, and additional demands from 2010 onward have yet to be issued by GAZT.
The bank expected a significant zakat exposure, if the tax authority maintained the same interpretation, and said it has not set aside any provisions, awaiting final decision from GAZT.
All banks operating in Saudi Arabia are subject to such additional claims, and a few of them have reported their respective amounts.
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