Riyad Bank urged to pay SAR 3.5 bln extra zakat levy

Riyad Bank said it would have to pay an additional zakat claim of SAR 3.5 billion for the years 2008-2013, after the zakat authority applied a new accounting method to the long-term investments of banks, according to the lender's financial statements seen by Argaam.

The Saudi General Authority of Zakat and Tax (GAZT) informed the bank of the additional zakat demands worth SAR 3.5 billion, which is higher than the originally estimated figure. The difference is attributable to the application of a new interpretation by GAZT.

Other banks operating in Saudi Arabia are subject to the same interpretation, and have yet to announce positions and any additional demands issued by GAZT.

Riyad Bank said it has not yet allocated any provisions for the additional claims.