Saudi crown prince seeks solution to banks' tax row

Riyadh

CROWN Prince Mohammed bin Salman has directed the Saudi government to resolve a dispute with banks facing higher Islamic tax liabilities, banking sources said, in an attempt to avoid any damage to his push to diversify the economy.

It follows disclosures by major Saudi banks in recent weeks that the government's General Authority of Zakat and Tax (GAZT) is asking them for additional payments of zakat - the name of the tax - for years going back as far as 2002. In some cases, the demands exceed half of a bank's annual net profit.