SZTAC 41/2020/IR;2018/1479/Z
Type
Case
Court
Saudi Arabia Zakat and Tax Appeal Committees
Jurisdiction
Saudi Arabia
Taxonomy
Income Tax, Taxes Management
Decision date
1 Jan 2020
Catchwords
Zakat - Income Tax - Taxes Management
Accounting principles established that if the balance of financial derivatives resulting from the barter contract recognized within the obligations in the company’s financial statements, it must be matched with the losses that are recorded within the rights of the partners. Therefore, when adding the amount of financial derivatives within the components that are subject to zakat in the base, it is necessary to deduct the corresponding loss within the negative components of the base.
Background
In the form, the objection submitted by the Zakat payer/company was accepted
In the merits, the Authority endorsed the addition of the item of derivative financial instruments, to which the transfer of the year has been made, at an amount of 4,051,330 Riyals, to the Zakat base for the Zakat payer for the year 2009.
Where this decision was not accepted by the plaintiff (company...), she submitted to the Chamber an appeal statement that included the following summary: