Registering a property on another person's name for tax reasons

Q: My father has purchased a property and is registering it on my name for his own tax reasons. I have to sign legal documents, etc. confirming my ‘ownership’ of this property. However, I will not be the actual owner of the property. I asked my father who really owns the property so that I would know for my own zakaat purposes and inheritance reasons. He replied that he owns the property (and he is thus the one paying zakaat on the rental income).

(1) Despite the property being in my name formally, who truly owns the property in Shari’ah?

(2) Who is responsible for paying zakaat on the rental income?

A:

1. Since he registered the property on your name to avoid certain legal implications and has not made you the owner of it, he will still remain the owner.

2. Since he is the owner, he will have to pay the zakaat on the rental income.

And Allah Ta'ala (الله تعالى) knows best.

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)