Samba urged to pay SAR 1.3 bln extra zakat levy

Samba Financial Group (Samba) said it would have to pay additional zakat claims of SAR 1.3 billion for the years 2004 to 2009, after the zakat authority applied a new accounting method to banks' long-term investments.

The Saudi General Authority of Zakat and Tax (GAZT) informed the bank of additional zakat demands worth SAR 1.3 billion. The bank has challenged the decision and awaits GAZT's reply.

All banks operating in Saudi Arabia are subject to the same interpretation, and some of them have reported their respective amounts.

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