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Middle East Specialized Cables Co. (MESC) announced receiving a decision issued by the First Appeal Committee for Income Tax Violations and Disputes to accept the company's appeal regarding the item (Zakat base for invested companies for 2015 to 2018) and reject its appeal regarding the rest of the items.
The company is in the process of submitting a petition to the General Secretariat of Tax Committees to reconsider the decision, according to a statement to Tadawul.
The financial impact will be determined later and any new developments will be announced in due course.
With regards to 2014 returns, MESC submitted a request to implement Ministerial Decision No. 13957, dated Rabie Al-Awwal 7, 1444, which allows the companies to apply the provisions of Ministerial Decision No. 2216, dated Rajab 7, 1440, to the fiscal years that begin before Jan. 1, 2019. The request was accepted by the Zakat, Tax and Customs Authority.
In December 2020, MESC received letters from the General Authority of Zakat and Tax (GAZT) requiring it to amend Zakat declarations submitted from 2014 to 2018. The letters demanded a payment of Zakat differences, totaling SAR 64.96 million, for the period, according to data available with Argaam.
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