Utilizing Unlawful Wealth

Utilizing Unlawful Wealth

2nd March 2016

السلام عليكم و رحمة الله و بركاته

Question: What is the legal ruling on paying Zakāt from unlawful income such as benefit fraud? Is it permissible to utilize it for their own needs and if not, then how should one dispose of it?

الجواب حامداً و مصلياً

In the name of Allāh, the Most Gracious, the Most Merciful

Answer

Regarding the above query, taking unlawful advantage of the benefit welfare system in the UK is not permitted and sinful. As a general principle, Zakāt is never calculated upon unlawful earnings and hence, subjected to a separate legal ruling. However, the nature of the query requires an elaborated answer since other perspectives must be taken into consideration. To explain, anyone who does not possess any lawful income apart from the above then Islamically they don’t own that wealth. This income falls into the category of khabeeth (unlawful) according to the Fuqaha terminology, and Khabeeth wealth is not Zakātable even if it reaches the Nisāb level.[1] The money must be returned to the government by contacting the relevant agency. Should this prove impossible then as a final resort it must be given away to the neediest people without the intention of reward with the purpose of disposing of it.[2] Alternatively, some scholars have allowed using Khabeeth wealth to fund non-Islamic public welfare projects.[3] Such projects may include sports centres, health research projects etc.

If the above unlawful income is mixed with other personal lawful earnings then there are two scenarios. If both lawful and unlawful are separable, then the unlawful income must be separated and utilized as explained above and Zakāt becomes payable on the lawful portion if it fulfils the criteria of Zakāt that is. If the mixture of both are inseparable, in that calculating the unlawful amount from the lawful one is not possible and both combined reach the Nisāb level then Zakāt become payable if the majority of income is lawful as ownership is now established in this case according to Imām Abū Haneefah rahimahullah. In the case where the majority is unlawful then Zakāt won’t be calculated and all of it must be disposed of as explained above.[4] It must be noted here that Imām Sāhib’s rahimahullah ruling is based on determining the legality of Zakāt in such a predicament and should not be misconstrued where a person justifies in benefiting from unlawful earnings. One still bears the burden of sin of earning even a small quantity of Harām income.

[Allāh Knows Best]

Written by (Mufti) Abdul Waheed

Answer Attested by Shaykh Mufti Saiful Islam

JKN Fatawa Department

[1] Al-Shāmi Durrul Mukhtar wa hashiyah Ibn Abideen, Book of Zakāt, Bāb Zakāt al-Ghanam, p 218 vol 3

(قَوْلُهُ: كَمَا لَوْ كَانَ الْكُلُّ خَبِيثًا) فِي الْقُنْيَةِ لَوْ كَانَ الْخَبِيثُ نِصَابًا لَا يَلْزَمُهُ الزَّكَاةُ؛ لِأَنَّ الْكُلَّ وَاجِبُ التَّصَدُّقِ عَلَيْهِ فَلَا يُفِيدُ إيجَابَ التَّصَدُّقِ بِبَعْضِهِ

[2] Al-Shāmi Durrul Mukhtar wa hashiyah Ib Abideen, Book of Hadhr wal Ibāhat, Fsl fil Bai, p 553 vol 9

لَوْ مَاتَ رَجُلٌ وَكَسْبُهُ مِنْ ثَمَنِ الْبَاذَقِ وَالظُّلْمِ أَوْ أَخْذِ الرِّشْوَةِ تَعُودُ الْوَرَثَةُ وَلَا يَأْخُذُونَ مِنْهُ شَيْئًا وَهُوَ الْأَوْلَى لَهُمْ وَيَرُدُّونَهُ عَلَى أَرْبَابِهِ إنْ عَرَفُوهُمْ، وَإِلَّا يَتَصَدَّقُوا بِهِ؛ لِأَنَّ سَبِيلَ الْكَسْبِ الْخَبِيثِ التَّصَدُّقُ إذَا تَعَذَّرَ الرَّدُّ

[3] Shaykh Khalid Saifullah Rahmāni, Kitābul Fatāwa, p. 308, vol5

[4] Al-Shāmi Durrul Mukhtar wa hashiyah Ib Abideen, Book of Zakāt, Bāb Zakāt al-Ghanam, p 217-8 vol 3

(وَلَوْ خَلَطَ السُّلْطَانُ الْمَالَ الْمَغْصُوبَ بِمَالِهِ مَلَكَهُ فَتَجِبُ الزَّكَاةُ فِيهِ وَيُورَثُ عَنْهُ) ؛ لِأَنَّ الْخَلْطَ اسْتِهْلَاكٌ إذَا لَمْ يُمْكِنْ تَمْيِيزٌ عِنْدَ أَبِي حَنِيفَةَ، وَقَوْلُهُ أَرْفَقُ إذْ قَلَّمَا يَخْلُو مَالٌ عَنْ غَصْبٍ، وَهَذَا إذَا كَانَ لَهُ مَالٌ غَيْرُ مَا اسْتَهْلَكَهُ بِالْخَلْطِ مُنْفَصِلٌ عَنْهُ يُوَفِّي دَيْنَهُ وَإِلَّا فَلَا زَكَاةَ، كَمَا لَوْ كَانَ الْكُلُّ خَبِيثًا كَمَا فِي النَّهْرِ عَنْ الْحَوَاشِي السَّعْدِيَّةِ.

(قَوْلُهُ: بِمَالِهِ) مُتَعَلِّقٌ بِخَلَطَ، وَأَمَّا لَوْ خَلَطَهُ بِمَغْصُوبٍ آخَرَ فَلَا زَكَاةَ فِيهِ كَمَا يَذْكُرُهُ فِي قَوْلِهِ كَمَا لَوْ كَانَ الْكُلُّ خَبِيثًا (قَوْلُهُ: لِأَنَّ الْخَلْطَ اسْتِهْلَاكٌ) أَيْ بِمَنْزِلَتِهِ مَنْ حَيْثُ إنَّ حَقَّ الْغَيْرِ يَتَعَلَّقُ بِالذِّمَّةِ لَا بِالْأَعْيَانِ ط

(قَوْلُهُ: مُنْفَصِلٌ عَنْهُ) الَّذِي فِي النَّهْرِ عَنْ الْحَوَاشِي: مَحَلُّ مَا ذَكَرُوهُ مَا إذَا كَانَ لَهُ مَالٌ غَيْرُ مَا اسْتَهْلَكَهُ بِالْخَلْطِ يُفْصَلُ عَنْهُ فَلَا يُحِيطُ الدَّيْنُ بِمَالِهِ. أَيْ يُفْصَلُ عَنْهُ بِمَا يَبْلُغُ نِصَابًا

مَنْ مَلَكَ أَمْوَالًا غَيْرَ طَيِّبَةٍ أَوْ غَصَبَ أَمْوَالًا وَخَلَطَهَا مَلَكَهَا بِالْخَلْطِ وَيَصِيرُ ضَامِنًا، وَإِنْ لَمْ يَكُنْ لَهُ سِوَاهَا نِصَابٌ فَلَا زَكَاةَ عَلَيْهِ فِيهَا وَإِنْ بَلَغَتْ نِصَابًا؛ لِأَنَّهُ مَدْيُونٌ وَمَالُ الْمَدْيُونِ لَا يَنْعَقِدُ سَبَبًا لِوُجُوبِ الزَّكَاةِ عِنْدَنَا. اهـ.

Zakāt on Monthly Mortgage

1st September 2015

السلام عليكم و رحمة الله و بركاته

Question: Man is Mālik (owner) of gold on his parent’s side and a Wife is owner of gold on her parent’s side.

  1. From 2009 to 2013, the monthly mortgage payment was £400 (25 year mortgage/house loan). After paying all expenses, £6000 remains in his savings in 2010. This does not increase during 2011,2012,2013. Gold on Man’s parents side is more than 7.5 tolas. Wife has gold more than 7.5 tolas on her parent’s side. What is the ruling of Zakāt on both the man and wife until 2013?
  2. House was repossessed in 2014. The bank sold house at a cheaper price. Total outstanding balance was £17000. Bank is chasing for this. The man’s cash plus gold are no more than £ 17000. Do they still need to pay Zakāt?

 

الجواب حامداً و مصلياً

In the name of Allāh, the Most Gracious, the Most Merciful

Answer

1: In reference to your query, with the exception of the monthly mortgage payment, Zakāt is obligatory on the £6000 savings and the 7.5 tola of gold because of each of them reaches the required Nisāb level. Zakāt for both cash and gold must be calculated separately and not combined. [1] As a note, the man and wife are individually responsible for paying Zakāt on their own Zakatable assets if they are considered the sole owners of it. The man is not liable for paying Zakāt on his wife’s behalf and vice-versa. Whoever is considered the owner of £6000 is responsible for paying Zakāt on it. Any previous years of outstanding Zakāt on both articles should be calculated as well.

2: In this scenario, Zakāt will not be necessary as your debt now encompasses all your savings.[2]

[Allāh Knows Best]

 

Written by (Mufti) Abdul Waheed

Answer Attested by Shaykh Mufti Saiful Islam

JKN Fatawa Department

[1] Durrul Mukhtār wa Hashiyah Ibn Ābideen as-Shāmi, Kitāb Zakāt, Bāb Zakātil Māl, p. 234 vol 3

وَإِنْ تَعَدَّدَ النِّصَابُ تَجِبُ إجْمَاعًا أَيْ بِحَيْثُ يَبْلُغُ قَبْلَ الضَّمِّ مَالُ كُلِّ وَاحِدٍ بِانْفِرَادِهِ نِصَابًا فَإِنَّهُ يَجِبُ حِينَئِذٍ عَلَى كُلٍّ مِنْهُمَا زَكَاةُ نِصَابِهِ

[2] Durrul Mukhtār wa Hashiyah Ibn Ābideen as-Shāmi, Kitāb Zakāt, p.180 vol3

(فَلَا زَكَاةَ عَلَى مُكَاتَبٍ) لِعَدَمِ الْمِلْكِ التَّامِّ…. (وَمَدْيُونٍ لِلْعَبْدِ بِقَدْرِ دَيْنِهِ) فَيُزَكِّي الزَّائِدُ إنْ بَلَغَ نِصَابًا

(قَوْلُهُ وَمَدْيُونٍ لِلْعَبْدِ) الْأَوْلَى وَمَدْيُونٍ بِدَيْنٍ يُطَالِبُهُ بِهِ الْعَبْدُ لِيَشْمَلَ دَيْنَ الزَّكَاةِ وَالْخَرَاجِ لِأَنَّهُ لِلَّهِ – تَعَالَى – مَعَ أَنَّهُ يَمْنَعُ لِأَنَّ لَهُ مُطَالِبًا مِنْ جِهَةِ الْعِبَادِ كَمَا مَرَّ

 

Calculating Zakāt on Stocks

15th June 2015

السلام عليكم و رحمة الله و بركاته

Question: My question is about Zakāt for shops, like book stores, general stores, medical stores etc. First question is, is Zakāt payable on inventory in the shop or income of the shop?

Secondly, if it is on inventory or “goods for sale” which goes up and down every month plus it is not possible to calculate the exact value of items then how to give Zakāt?

الجواب حامداً و مصلياً

In the name of Allāh, the Most Gracious, the Most Merciful

Answer

In reference to your query, Zakāt is calculated on the inventory (current market) value of the business stocks. If it is the case where the market value fluctuates throughout the year then the simplest method to calculate the amount of Zakāt would be to evaluate the current market value towards the end of the lunar year. To illustrate this, for instance, the market value of a particular item was £100 at the beginning of Ramadhān 2014. The market value then increased to £150 by Ramadhān 2015 then the Zakāt will be calculated on the value of £150. In short, the market value at the end of the year when Zakāt is due is considered and not the fluctuating value throughout the year.

[Allāh Knows Best]

Written by (Mufti) Abdul Waheed

Answer Attested by Shaykh Mufti Saiful Islam

JKN Fatawa Department

Non-Muslims Contributing Funds Towards Islamic Projects

4th April 2014

 

السلام عليكم و رحمة الله و بركاته

Question: If a Non-Muslim contributes funding towards an Islamic project (e.g. Masjid) or for any needy Muslim or sending any person for Umrah, then is it permissible to accept it?

الجواب حامداً و مصلياً

In the name of Allāh, the Most Gracious, the Most Merciful

Answer

According to the mainstream view of the Hanafi Fuqaha, it is not mandatory for a donor towards a noble cause; Islamic project such as masjid or spending on the poor and needy Muslims, to be Muslim. A Non-Muslim’s donation can be accepted if he considers such an act rewarding for him provided that he does not spend from such earnings considered unlawful in Islām for instance income by selling alcohol.[1] Moreover, such donation does not involve interfering in the management of the Islamic project.[2]

However, the ruling is different if a Non-Muslim sponsors a Muslim to perform Umrah or Hajj. The general view is that it is not permissible to accept funds from him to perform acts of worship as they are generally not acknowledged as rewarding for them. A sponsor for such a cause must be a Muslim.[3]

 

[Allāh Knows Best]          

Written by (Mufti) Abdul Waheed

Answer Attested by Shaykh Mufti Saiful Islam

JKN Fatawa Department

[1] Ibn Nujaim, Bahr Raiq, Book of Waqf p. 316 vol 5

وَأَمَّا الْإِسْلَامُ فَلَيْسَ مِنْ شَرْطِهِ فَصَحَّ وَقْفِ الذِّمِّيِّ بِشَرْطِ كَوْنِهِ قُرْبَةً عِنْدَنَا وَعِنْدَهُمْ كَمَا لَوْ وَقَفَ عَلَى أَوْلَادِهِ أَوْ عَلَى الْفُقَرَاءِ أَوْ عَلَى فُقَرَاءِ أَهْلِ الذِّمَّةِ فَإِنْ عَمَّمَ جَازَ الصَّرْفُ إلَى كُلِّ فَقِيرٍ مُسْلِمٍ أَوْ كَافِرٍ

Tabyeen Haqaiq Commentry of Bahr Raiq

وَأَمَّا الْإِسْلَامُ فَلَيْسَ بِشَرْطٍ فَلَوْ وَقَفَ الذِّمِّيُّ عَلَى وَلَدِهِ وَنَسْلِهِ وَجَعَلَ آخِرَهُ لِلْمَسَاكِينِ جَازَ وَيَجُوزُ أَنْ يُعْطِيَ الْمَسَاكِينَ الْمُسْلِمِينَ وَأَهْلَ الذِّمَّةِ

[2] Imam Abu Bakr Jassas, Ahkamul Qur’an p. 278 vol 4

فَاقْتَضَتْ الْآيَةُ (مَا كَانَ لِلْمُشْرِكِينَ أَنْ يَعْمُرُوا مَسَاجِدَ اللَّهِ) مَنْعَ الْكُفَّارِ مِنْ دُخُولِ الْمَسَاجِدِ وَمِنْ بِنَائِهَا وَتُوَلِّي مَصَالِحِهَا وَالْقِيَامِ بِهَا لِانْتِظَامِ اللَّفْظِ لِلْأَمْرَيْنِ

[3] Ibn Abideen Shami (ra), Raddul Muhtar, Book of Waqf, Waqf established with necessity, p. 524 vol 6

لَوْ وَقَفَ الذِّمِّيُّ عَلَى حَجٍّ أَوْ عُمْرَةٍ مَعَ أَنَّهُ لَا يَصِحُّ وَلَوْ أَجْرَى الْكَلَامَ عَلَى ظَاهِرِهِ لَا يَدْخُلُ فِيهِ وَقْفُ الذِّمِّيِّ عَلَى الْفُقَرَاءِ لِأَنَّهُ لَا قُرْبَةَ مِنْ الذِّمِّيِّ، وَلَوْ حُمِلَ عَلَى أَنَّ الْمُرَادَ مَا كَانَ قُرْبَةً فِي اعْتِقَادِ الْوَاقِفِ يَدْخُلُ فِيهِ وَقْفُ الذِّمِّيِّ عَلَى بِيعَةٍ مَعَ أَنَّهُ لَا يَصِحُّ فَنُعَيِّنُ أَنَّ هَذَا شَرْطٌ فِي وَقْفِ الْمُسْلِمِ فَقَطْ، بِخِلَافِ الذِّمِّيِّ لِمَا فِي الْبَحْرِ وَغَيْرِهِ أَنَّ شَرْطَ وَقْفِ الذِّمِّيِّ أَنْ يَكُونَ قُرْبَةً عِنْدَنَا وَعِنْدَهُمْ كَالْوَقْفِ عَلَى الْفُقَرَاءِ أَوْ عَلَى مَسْجِدِ الْقُدْسِ بِخِلَافِ الْوَقْفِ عَلَى بِيعَةٍ فَإِنَّهُ قُرْبَةٌ عِنْدَهُمْ فَقَطْ أَوْ عَلَى حَجٍّ أَوْ عُمْرَةٍ فَإِنَّهُ قُرْبَةٌ عِنْدَنَا فَقَطْ