The Company’s Zakat and Tax status The Company has filed its zakat returns up to 2012. The zakat assessments have been agreed with the Department of Zakat and Income Tax (“DZIT”) for all the years up to 2000. The “DZIT” has raised the zakat assessment for the years 2001 to 2007 claiming additional zakat liabilities of SR 22 million. The Company filed an appeal against these certain items included in these assessments and DZIT treatment. The DZIT has accepted this appeal in form and discussed the appeal with the second Preliminary Appeal Committee. The company has paid its Zakat expense for the year 2013, and it will fill the Zakat return for 2013 during 2015. The Company did not receive the final assessments for the years from 2008 until 2012.The Company consid- ers that adequate provision is maintained as at December 31, 2014 for any potential zakat and withholding tax. Zakat and tax status of NCC NCC has submitted the zakat returns for all fiscal years up to 2013 and the withholding tax returns up to November 2014 and paid the zakat and withholding taxes due accordingly. This subsidiary company has received zakat and withholding tax assessments for the years 1991 to 2004. This subsidiary company has filed an appeal against some items included in these assessment and treatment. In April 2010, the subsidiary company reached an agreement with the DZIT for a final settlement of the above assessments in the amount of Saudi Riyals 54 million, the subsidiary company paid Saudi Riyals 26 million of this amount during 2011 and the remaining balance is to be paid in installments over five years starting July 2012 . The subsidiary company has received the zakat and withholding tax assessments for the years 2005 to 2008. The subsidiary company has filed an appeal against some items included in these assessments and their treatments, which is still pending. The subsidiary company’s management considers that the provision for zakat and withholding tax is adequate as of 31 December 2014. Zakat and tax status of Bahri Dry Bulk LLC Bahri Dry Bulk has submitted its zakat returns for the years up to 2012, and has not received any Zakat assessment from the DZIT yet. The company will submit its zakat and withholding tax returns for the years up to 2013 during 2015. The Company believes that it maintains an adequate provision for zakat and withholding tax as at December 31, 2014. 19- Other liabilities This item represents the total amounts received from one of the ships building companies as at December 31, 2014 and 2013 against charging this company with the repair costs of the tanks related to the new six vessels built for National Chemical Carrier Company (subsidiary). Therefore, it was agreed to charge the ships building company a total amount of SR 36.75 mil- lion i.e. SR 6.12 million for each ship. During the year ended December 31, 2013, repair of tanks for one of these vessels was made during its maintenance period, which resulted in saving of SR 5.2 million. This amount was recognized as other income (note 22). As the National Chemical Carrier Company do not have a maintenance plan for the remaining vessels for the next 12 months, the item was classified as non-current liabilities.
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Annual Report 2014
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