GACO appeal rejected in ZATCA dispute, ordered to pay SAR 3.7M

Logo of Al Gassim Investment Holding Co. (GACO)

Al Gassim Investment Holding Co. (GACO) received from its tax consultant on Feb. 12 the appellate department’s decision to reject the reconsideration appeal on the committee's previous verdict that turned down the appeal filed against the Zakat, Tax, and Customs Authority (ZATCA).

GACO is now obliged to pay additional amounts for 2018, totaling SAR 3.7 million.

In a statement to Tadawul, the company said there will be no impact on 2023 financials, as a Zakat provision had previously been allocated.

According to data available on Argaam, GACO received in January 2023 a decision from the appellate department stating that the appeal against ZATCA for 2018 claims was accepted in form and rejected in subject. The company had then said it intends to submit a petition to reconsider the decision.

In September 2020, GACO received letters from ZATCA to amend Zakat claims for 2014 to 2018 and settle the differences for the mentioned years, at a total value of SAR 13.26 million.

In December 2021, the firm received the decision of the First Department to determine income tax violations and disputes in Riyadh, which accepted the appeal filed by ZATCA in form and dismissed the company’s lawsuit against ZATCA over the Zakat claims for 2018.