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Baazeem Trading Co. received letters from the General Authority of Zakat and Tax (GAZT), requiring it to adjust its Zakat reports for the period from 2014 to 2018, and pay Zakat differences worth SAR 8.57 million, according to a bourse statement.
The Tadawul-listed firm clarified that Zakat reports were submitted for that period, based on the external auditor's calculation mechanism.
According to GAZT letters, Baazeem can challenge the required changes during the 60-day regulatory period from the date of receiving the letters.
Accordingly, the company will submit an appeal during the specified period. The founding shareholders will partly pay the amounts after being approved by the Committee for Settlement of Zakat and Tax Violations, which will mitigate the financial impact on the company's financial results.
The related financial impact will be determined in due course, Baazeem added.
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