In these Procedures, the following words and phrases shall have the meanings assigned thereto, unless the context requires otherwise:

Procedures: Zakat, Tax, and Customs Committee Procedures.

Authority: Zakat, Tax, and Customs Authority.

Board: Board of Directors of the Authority.

Dispute Circuits: Any circuit of the Zakat, Tax, and Customs Dispute and Violation Committees.

Appellate Circuits: Any circuit of the Zakat, Tax, and Customs Dispute and Violation Appellate Committees.

Circuits: Dispute circuits and appellate circuits.

Member: Any member of a circuit, including the head of the circuit.

General Secretariat: General Secretariat of the Zakat, Tax, and Customs Committees.

Secretary General: Secretary General of the Zakat, Tax, and Customs Committees.

Remote Litigation: Litigation between the parties to the lawsuit through the electronic communication means specified by the General Secretariat.

Zakat, Tax, and Customs Laws and Regulations: Zakat, tax, and customs laws and regulations, resolutions and instructions applicable in the Kingdom of Saudi Arabia, and relevant international agreements and treaties to which the Kingdom is a party.

Taxpayer: Any natural or legal person subject to zakat, tax, and/or customs duties, in accordance with zakat, tax, and customs laws and regulations

Internal Committee: The Authority’s internal committee in charge of settling the disputes which arise between the Authority and taxpayers with respect to the Authority's decisions.

Settlement Procedures: Procedures for the settlement of zakat, tax, and customs disputes.

Day: A calendar day, including official state holidays.

The filing of lawsuits, submission of memoranda, and conduct of litigation procedures shall be made in the physical presence of the parties to the lawsuit or be made remotely through electronic means following the requirements set by the General Secretariat.

1. Zakat and tax dispute circuits shall have the jurisdiction to decide on the following:

• a) Violations, disputes, and public and private lawsuits arising from the application of zakat and tax laws and regulations.

• b) Objections filed by persons with interest against decisions issued by the Authority in the application of zakat and tax laws and regulations.

2. Customs dispute circuits shall have the jurisdiction to apply the Unified Customs Law of GCC States and its Implementing Regulations, including the following:

• a) Considering all customs smuggling offenses and the like.

• b) Considering all offenses and violations of said Law and its Implementing Regulations.

• c) Reviewing objections to collection decisions in accordance with Article 147 of said Law 

• d) Reviewing objections to decisions involving fines in accordance with Article 148 of said Law.

• e) Reviewing objections to decisions denying requests for refunds.

3. Appellate circuits shall have the jurisdiction to decide on objections to the decisions of dispute circuits.

4. Circuits shall have the jurisdiction to investigate and decide lawsuits, including the authority to summon witnesses, order the submission of evidence and documents, issue decisions, and impose penalties, in accordance with relevant legal provisions.

A lawsuit may be heard by any circuit with subject-matter jurisdiction to consider such lawsuit irrespective of its territorial jurisdiction, excluding lawsuits relating to committing or attempting to commit customs smuggling offences and the like. In such lawsuits, the circuits under whose territorial jurisdiction the place where the offense was committed is located shall have jurisdiction.

Any person against whom a decision is issued by the Authority may file an objection within 60 days from the day following the date of notification thereof. The Authority shall decide on said objection within 90 days from the filing date. The objecting person may, within 30 days from the day following the date of notification of the rejection or partial acceptance of the objection or upon the lapse of 90 days without a decision being made thereon, take any of the following actions:

• a) Request the referral of the objection to the internal committee for settlement. If the taxpayer rejects the internal committee’s decision or if the period specified in the Settlement Procedures lapses without a settlement being reached, he may object to the Authority’s decision before the dispute circuits within 30 days from the date of notification of the internal committee’s decision or upon the lapse of the period specified in the Settlement Procedures without reaching a settlement. Said objection shall not include any matters that have been settled with the internal committee.

• b) File a lawsuit directly with the dispute circuits.

Without prejudice to the provisions of Article 5 of these Procedures, Authority decisions may not be appealed before any other body in any of the following cases:

• a) If the taxpayer fails to file an objection to the decision with the Authority within 60 days from the day following the date of notification thereof.

• b) If the taxpayer fails to file a lawsuit with the dispute circuits or to request the referral of his objection to the internal committee for settlement within 30 days from the day following the date of notification of the Authority's decision which amends the contested decision or rejects the objection or upon the lapse of 90 days from the date of filing his objection without a decision being made thereon.

• c) If the taxpayer fails to file a lawsuit with the dispute circuits within 30 days from the day following the date of notification of the internal committee’s decision relating to the settlement or from the lapse of the period specified in the Settlement Procedures without a settlement being reached.

Authority decisions shall not be unappealable if the competent circuit finds that such decisions do not meet the legal requirements stipulated in the zakat, tax, and customs laws and regulations.

1. An objection filed by a taxpayer in zakat and tax lawsuits shall not affect his obligation to pay the uncontested legally due amount.

2. The enforcement of decisions related to the collection of contested customs duties, other charges, and established customs fines shall not be stayed unless a bank guarantee or cash security is furnished to fully cover the claimed amounts.