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Bank Aljazira said it was requested to pay additional zakat claims of SAR 462 mln for the years up to 2011, after the zakat authority applied a new accounting method to local banks' long-term investments and financing.
The Bank received the zakat assessments for the years up to (and including) 2011, in which GAZT raised additional demands aggregating to SAR 462.2 million for the years 2006 to 2011, the bank said in its annual review.
Additional demands included SAR 392.9 million on account of disallowance of long-term investments and the addition of long-term financing to the Zakat base by GAZT.
The basis for such additional demands is being contested by the Bank before the Higher Appeal Committee, it added.
All banks operating in Saudi Arabia are subject to the same interpretation, and have yet to announce positions and any additional demands applied to them.
Bank Aljazira said it has not allocated any provisions for the additional claims.
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