Decisions of Zakat and Tax Committees: Notification Mechanisms and Response Deadline

The General Secretariat of the Zakat, Tax, and Customs Committees in the Kingdom of Saudi Arabia has revealed details and procedures for notifications and the exchange of legal memoranda, clarifying the officially approved mechanisms and deadlines for responses, as well as the procedures to be followed in cases where notification is not possible. This announcement comes as part of the Kingdom's ongoing efforts to develop its legislative and legal environment and safeguard the rights of all parties.

General context and development of the zakat and tax system

In recent years, and in line with the objectives of Saudi Vision 2030, the Kingdom of Saudi Arabia has witnessed fundamental transformations in the structure of its financial and economic system. This was clearly demonstrated by the merger of the General Authority for Zakat and Income Tax with the General Authority of Customs, establishing an integrated system that enhances efficiency and transparency. In this context, the General Secretariat of the Zakat, Tax, and Customs Committees plays a pivotal role in resolving disputes, ensuring the rights of all parties, whether individuals or commercial entities, and reinforcing the principles of swift justice and institutional transparency.

System-approved reporting mechanisms

The Secretariat clarified that notification is considered legally valid when delivered via the contact information registered by the plaintiff. In line with the comprehensive digital transformation underway in the Kingdom's justice and business sectors, notification methods are diversified to include text messages sent to the registered mobile phone, verified email addresses, and telephone calls. Notification via the national address, the address recorded in the commercial register, and accounts registered in government e-services are also accepted. The Secretariat emphasized that notification can be carried out at any time without time restrictions, thus expediting procedures. The Secretariat is also entitled to utilize the private sector or relevant authorities to notify parties to a case, ensuring accurate and documented delivery of notifications.

Time limits and procedures for the defendant's absence

Regarding the legal deadlines, the Secretariat clarified that the defendant is obligated to respond to the lawsuit within a period not exceeding 30 days from the date of notification. This period may be extended for a similar duration upon a reasoned and justified request. If the response is not submitted within the specified period, the lawsuit is referred to the competent court for consideration. Furthermore, the plaintiff has the right to review the defendant's response and comment on it within 10 days from the date of notification. If notification is not possible through all the aforementioned means, an official notice will be published in the Official Gazette or a local newspaper, in preparation for completing the procedures and issuing a default judgment against the defendant.

Public rights claims and documentation of sessions

The Secretariat indicated that notification in public rights cases is subject to the procedures stipulated in the Criminal Procedure Law, in accordance with the nature and sensitivity of these cases. Furthermore, all details of the sessions are meticulously documented, including the date and time of the session, the location, the names of the panel members and the parties to the case, as well as all procedures and events that occur during the session, to ensure complete transparency.

Importance and expected impact on the business environment

This meticulous regulation is of paramount importance domestically, as it directly contributes to expediting litigation and reducing the backlog of financial cases, which positively impacts the stability of the legal standing of companies and institutions. Regionally and internationally, the clarity of litigation procedures in the Zakat and tax committees sends a strong message of reassurance to foreign investors, affirming the existence of a safe, fair, and transparent investment environment in Saudi Arabia, thus contributing to raising the Kingdom's ranking in global ease of doing business and competitiveness indices.