SZTAC 45/2021/IR ; 2018/1751/I
The fundamental principle in recognizing or disallowing losses or expenses is to rely on the taxpayer's accounting system and the information contained therein to determine the treatment of these expenses or losses.
Background
On Sunday, 06 Dhul Hijjah 1442H, corresponding to 18 April 2021, the First Appellate Division for Income Tax Violations and Disputes convened pursuant to Saudi Arabia Royal Decree No. 65474/1439 dated 23 Rabi' Al-Thani 1439H. The meeting took place at its headquarters in Riyadh. The purpose of the meeting was to consider the appeal submitted on 24 Jumada Al-Thani 1436H by [Company Name], against Saudi Arabia Decision No. 3/1436 for the year 1436H issued by the Second Primary Zakat and Tax Objections Committee in Riyadh, regarding objection No. (35/22) concerning the zakat tax assessment for the years from 2007 CE to 2011 CE. The appeal was filed by the Appellant against the General Authority of Zakat and Income. The primary decision rendered in this matter ruled as follows:
First, in form:
The objection of the taxpayer, [Company Name], was procedurally accepted due to its submission within the statutory period and meeting the required criteria.
Second, in merits: