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The General Authority of Zakat & Tax (GAZT) said that electronic linkage with competent authorities helped monitor corporate manipulations with financial statements, as some companies were found to be reporting false data to reduce due Zakat and tax, Al-Watan newspaper reported.
It is difficult at this time to exactly determine their manipulations. However, penalties among other regulatory measures will be imposed to identify these violations and take the necessary actions against violators.
GAZT will impose penalties, according to the tax and Zakat regulations, while manipulators will be punished by the Saudi Organization for Certified Public Accountants (SOCPA).
Moreover, a memorandum of understanding will be signed with SOCPA to report violations, GAZT said, noting that the move will increase confidence in corporate financial statements, which are endorsed by licensed accountants, enhance boost Zakat and tax compliance.
GAZT is also coordinating with the Ministry of Commerce to get the financial statements of all companies and enterprises through “Qawaem” portal.
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