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Saudi Paper Manufacturing Co. (SPM) reached a settlement with the Zakat, Tax and Customs Authority (ZATCA) on Zakat dues worth SAR 23.49 million for the period in dispute from 2015 to 2018, the company said in a statement to Tadawul today, Aug. 13.
SPM's management carried out all the necessary procedures for objection to the competent committees and obtained a settlement by paying an amount of SAR 10.41 million.
The company has set aside SAR 11.04 million in provision for the disputed period from 2015 to 2018.
The company has also received a letter from the Dispute Settlement Committee for Zakat and Tax, Customs Authority confirming the final decision of the committee regarding a payment of SAR 10.4 million.
The company's current management was keen to amend and end the status of Zakat obligations with ZATCA for the period from 2006 to 2014, extending to 2020, and submitted Zakat declarations for 2021 and 2022.
It is expected that the move to impact positively on SPM by reversing provisions worth SAR 625,107.
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