Banque Saudi Fransi contests extra zakat levy

Banque Saudi Fransi (BSF) said it is contesting an additional zakat claim of SAR 1.71 billion for the period of 2005-2013 made by the Saudi General Authority of Zakat and Tax (GAZT).

GAZT informed the bank of the extra claim, after the authority applied a new accounting method to the long-term investments of banks.

All lenders operating in Saudi Arabia are subject to the same interpretation and each have been required to pay varying amounts. Many of the banks have also challenged the authority’s request.

BSF said it has not allocated any provisions for the additional claims.

Last week, it was reported that Crown Prince Mohamed bin Salman had asked officials to resolve such disputes with banks that are required to pay higher zakat. Lenders in the Kingdom are facing a total of SAR 9.8 billion ($2.6 billion).