Zakaat

Zakaat on Intercompany Loans

Q: Is zakaat payable on Intercompany Loans? Company X and Y are owned by Mr. A. Company X lends Y R250 000 as demonstrated on the balance sheet. The loan is a general loan with no specific purpose. The loan is an Asset to X and a liability to Y. Will Company X pay Zakaat on the loan receivable from Y? Will Y subtract the loan in its zakaat calculation?

Saving Tax By Paying Zakaat

Q: I have been told that it is possible for us to form a Family Foundation, register it as a donor organization with the Receiver of Revenue for tax deductions for donations.  As the taxes we pay are used in un-Islamic ways by the Govt., e.g., abortions, corruption, mismanagement of funds, etc, it is better for us to pay as little tax as possible.  Since the donations made by the Foundation are tax deductible, it is a way in which Muslims can minimize their tax burden in a legal way when Zakaat is paid.

Taking Assistance Through Zakaat to Pay Expenses

Q: I earn a salary of R13000.00 and I have seven children. Alhamdulillah, my expenses of rental, lights and water, maid, school fees, an interest free loan that I took to buy a car and petrol add up to R8700.00 which doesn’t leave us much for Food, nappies, clothing and medical. Am I justified in approaching someone for a monthly assistance in the form of zakaat to pay either my rental or lights and water? Neither my wife nor I own any gold or jewellery. A flat that my mother is presently occupying will only become mine after her demise, may Allah grant her long life, aameen. My father left property in India for us but I do not possess the means or the knowhow of acquiring this.