Service: Zakat Consulting and Dispute Resolution
Client Sector: Services (Contracting)
Challenge
A contracting company faced a substantial additional zakat assessment due to a discrepancy in the interpretation of certain zakat base items by the Zakat, Tax and Customs Authority. This resulted in a financial burden and systemic risks to business continuity.
Our Role
The Thamer Al-Faleh Certified Public Accountants and Professional Consultants team conducted a thorough review of the case, which included:
Analysis of the financial statements for the years in dispute
Review of the disputed zakat base items
Preparation of a legal and technical objection brief supported by relevant documents and applicable accounting standards
Methodology
We employed a comprehensive methodology combining meticulous accounting analysis, a systematic understanding of zakat applications, and the drafting of a professional objection based on applicable regulations and bylaws, accurately reflecting the company’s position.
The result:
The efforts resulted in the acceptance of the objection by the relevant committees, and the complete cancellation of the disputed zakat assessment amount, which contributed to easing the financial burden on the client, preserving his cash flow, and supporting his financial stability.
