SZTAC 128/2021/IR; 2018/1497/Z
The write-off of amounts to related parties entails the declaration by those parties of the written-off amounts as their income in exchange for the debts that have been dropped.
Background
On Tuesday 19/11/1442 –29/06/2021 the first appeals chamber for Income Tax Interventions and Disputes convened a meeting in accordance with Saudi Arabia Royal Decree No. 65474/143 on the date of 23/12/1439 H.D in its location in Riyadh city. To consider the Appeal that has been submitted on objection H.D, from ... company on the decision of the second primary of zakat and tax objection in Riyadh No.(25) for the year 1438 H.D that has been issued in the appeal No. (38/10) on the zakat assessment for the years from 1990 to 2012 from the appellant against the authority of Zakat, tax and Customs. And the primary decision is the following:
First, in the form:
Acceptance of the objection submitted by the taxpayer /…company In formal terms for the years from 90 to 2012.
Second: In the merits:
1-rejection of the taxpayer's objection to the clause of difference of rounded losses for the reasons contained in the decision.