Consolidated Financial Statements
54
Notes To The Consolidated Financial Statements For the year ended December 31, 2008 (InThousands Saudi Riyals)
14. Zakat and IncomeTax
The Company’s zakat and tax status
2000 relating to an additional tax claims of SR11.9 million. Sufficient provisions were made to meet these tax claims, and submitted a bank guarantee for the total claims for the appeals to be accepted. The appeals are still pending as of the date of these consolidated financial statements. The National Chemical Carriers (NCC) submitted the zakat returns for all fiscal years up to 2007 and paid the zakat due according to these returns. The Company has received the zakat assessments including income tax assessments for the years 1991 to 2004 which include additional claims amounting to SR 84.6 million out of which NCC paid SR 28.4 millions. NCC filed appeals against these assessments. The appeals are still pending with the DZIT. The NCC is of the opinion that adequate provision for zakat and tax has been made up to December 31, 2008. Zakat assessments are prepared separately for the Company and its subsidiary. Provision for zakat and tax Following is the movement in provision for zakat and tax during the year ended December 31: Zakat and Tax status for the subsidiary (NCC)
The Company submitted the zakat returns for all fiscal years up to 2007 and paid the zakat due according to these returns. The Company finalized its zakat status with the DZIT up to 1988, and its tax status up to 1995. The Company has not yet received the zakat assessment from the DZIT for the years 2001 to 2007. The Company pays withholding tax amounts imposed on payments to non-resident parties to the DZIT on time as per tax regulations. The Company has not yet received the tax assessment from the DZIT for the years 2001 to 2004. Sufficient provisions were made to meet tax claims that might arise for the years of which assessments not received. The Company filed appeals against decisions no. (11, 12, 14) of 1427H for the years from 1989 to 2000 relating to additional zakat claims of SR 61.1 million against the Company. Sufficient provisions were made to meet these zakat claims, and submitted a bank guarantee for the total claims for the appeals to be accepted. The appeals are still pending as of the date of these consolidated financial statements. The Company also filed appeals against decisions no. (13, 15) of 1427H for the years from 1996 to Balance at beginning of the year Amounts paid during the year Provision made during the year Total zakat and tax provision Tax obligation – non current Provision for zakat and tax
2008
2007
152.951 )20.336( 54.471 187.086 )4.000( 183.086
157.125 )22.593( 18.419 152.951 )10.000( 142.951
15. Statutory Reserve
In accordance with Saudi Arabian Regulations for Companies, the Company is required to transfer 10% of the net income to the
statutory reserve until such reserve equals 50% of the paid-up capital. This reserve is not available for distribution to shareholders.
Powered by FlippingBook