Article 8 of the Saudi Real Estate Transaction Tax Law

This article governs the Authority's powers to oversee the value of dispositions and the periods within which it exercises them:

1. Verification and recalculation: within a period not exceeding three years from the date of the disposition, the Authority may verify the disclosed value, and must recalculate the tax if it is proven to it that the value is lower than the limits of fair market value, including cases of tax evasion, as the Regulations set out.
2. A disposition of undetermined value: within a period not exceeding three years from the date of the disposition, the Authority must estimate the value of a disposition of undetermined value that has been disclosed to it, in order to calculate the tax.
3. An undocumented or undisclosed disposition: the Authority must calculate the tax due on it.
4. Claiming payment: the Authority must claim within a period not exceeding three years from the date of the disposition, or from the date it became aware of the disposition if it was undocumented or undisclosed.
5. The accredited appraiser: the Authority may use an accredited appraiser to verify fair market value or to estimate the value of a disposition of undetermined value.
6. An exception to the periods: these periods do not affect the Authority's right to claim the tax if the time restrictions the Regulations set for exempt dispositions under Article 3 are breached.

The practical meaning is that lack of documentation or disclosure does not protect against a claim, because the claim period in that case runs from the date the Authority became aware. This article complements Article 7, which specifies who is responsible for payment, and Article 9, which governs the refund of tax paid in excess or by mistake. The Regulations set out the provisions and rules necessary to apply this article. Anyone who receives a claim or a reassessment should consult a lawyer who specializes in real estate and tax cases.