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الحمد لله رب العلمين و الصلاة و السلام على سيد الأنبياء و المرسلين
اما بعد
فقد قال الله تبارك و تعالى فى القران المجيد و الفرقان الحميد
يَا
أَيُّهَا الَّذِينَ آَمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ
الرِّبَا إِنْ كُنْتُمْ مُؤْمِنِينَ () فَإِنْ لَمْ تَفْعَلُوا
فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِ وَإِنْ تُبْتُمْ فَلَكُمْ
رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ () وَإِنْ
كَانَ ذُو عُسْرَةٍ فَنَظِرَةٌ إِلَى مَيْسَرَةٍ وَأَنْ تَصَدَّقُوا
خَيْرٌ لَكُمْ إِنْ كُنْتُمْ تَعْلَمُونَ () وَاتَّقُوا يَوْمًا
تُرْجَعُونَ فِيهِ إِلَى اللَّهِ ثُمَّ تُوَفَّى كُلُّ نَفْسٍ مَا
كَسَبَتْ وَهُمْ لَا يُظْلَمُونَ
و قال رسول الله صلى الله عليه و سلم
الْعَارِيَةُ مُؤَدَّاةٌ وَالزَّعِيمُ غَارِمٌ وَالدَّيْنُ مَقْضِىٌّ
My dear
brothers and respected elders,
Almighty
Allah Tabaraka wa Ta’ala has blessed us with innumerable bounties and
favours. Allah Ta’ala states in the Holy Quran, “If you try to count
the favours of Allah, you will never be able to do so.”
وَإِنْ تَعُدُّوا نِعْمَةَ اللَّهِ لَا تُحْصُوهَا
One of the greatest favours of Allah Ta’ala is the religion of Islam
which is complete, comprehensive, perfect and absolute. There are no
flaws and discrepancies in Islam. Islam provides complete guidance in
each and every aspect of our life, be it domestic, social, politics
and business and economics. We do not require guidance from any other
source. In this age of scientific calculations and technological
advancements, we have the comforts and luxuries of many bounties of
Allah Ta’ala. In spite of that, we still complain of grief, agony and
depression. Unfortunately, we have joined Club 99.
Once, a king was sitting in his palace looking out of his balcony. He
saw a labourer with his spade and hoe in hand full of joy an
happiness. The king was puzzled that such an ordinary peasant who
barely owned anything and who had to toil so hard was so happy. He
asked one of his courtiers regarding this. His courtier mentioned that
the reason for this was that he had not yet joined Club 99. The
courtier advised the king to give the labourer 99 gold coins, not more
and not less and then observe his attitude. The king gave a bag of 99
gold coins to the labourer. The following day, on his return home, he
saw this labourer in a very agitated and disturbed state. He summoned
the labourer and asked him regarding his condition. He told the king
that when he took the bag of coins home, he found that there was only
99 gold coins. The whole night he planned and plotted on how to
increase one more coin to top it off to 100. In the morning, this
caused him to get into an argument with his wife and family. During
the day, he was grieved and concerned regarding maintaining the 99
coins and increasing it to one hundred. Being unsuccessful, the
tension had mounted upon him and he was unable to find peace do to
this preoccupation. The courtier then told the king that this peasant
has lost his contentment due to joining club 99. If we do not fulfill
the rights of Allah in our wealth, we will suffer grief, agony and
depression
And our wealth will be a burden on us.
Allah
Ta’ala presents to us the incident of Qaroon in the Holy Quran. He was
the cousin of Musa (AS). Allah blessed him with lots of wealth. The
keys of his treasures were so weighty that a group of people was
required to carry the keys. If that was the condition of the keys of
his treasure, imagine what type of wealth he must have had.
Musa (AS)
was the head of the Banu Israil. Haroon (AS) was his deputy. Qaroon
said, “I am wealthier than the two, why shouldn’t I be the head of the
nation?” Musa (AS) explained to him that Allah decrees the position of
Prophet-hood; no one has any choice in the matter. When a person has
wealth and does not fulfil the rights of it and he abuses the wealth,
that wealth will be a burden for him.
إِنَّ قَارُونَ كَانَ مِنْ قَوْمِ مُوسَى فَبَغَى عَلَيْهِمْ
Allah
says, “Verily Qaroon was from the nation of Musa and he oppressed
them.” It is human nature to revolt against oppression. The Banu
Israel did not submit to the oppression of Qaroon. They revolted
against him and gave him five advices.
The first
advice is (لَا
تَفْرَحْ إِنَّ اللَّهَ لَا يُحِبُّ الْفَرِحِينَ
) don’t be proud, Allah does not like the proud ones.
The
second advice is seek (وَابْتَغِ
فِيمَا آَتَاكَ اللَّهُ الدَّارَ الْآَخِرَةَ)
the life of the hereafter through the wealth Allah has given you.
The third
advice is (وَلَا
تَنْسَ نَصِيبَكَ مِنَ الدُّنْيَا
) Do not forget your share of the world.
The
fourth advice is (وَأَحْسِنْ
كَمَا أَحْسَنَ اللَّهُ إِلَيْكَ)
to favour people as Allah favoured you.
The fifth advice is (وَلَا
تَبْغِ الْفَسَادَ فِي الْأَرْضِ),
do not seek mischief on Earth, Allah does not like the
mischief-makers.
Qaroon
did not take heed to these advices. He did not fulfil the right of his
wealth. Allah Ta’ala tells us in the Quran Karim,
فَخَسَفْنَا بِهِ وَبِدَارِهِ الْأَرْضَ فَمَا كَانَ لَهُ مِنْ فِئَةٍ
يَنْصُرُونَهُ مِنْ دُونِ اللَّهِ
“We made
the earth to swallow him with his wealth and there was no group to
assist him against Allah.”
We should
take heed from the incident of Qaroon. If we don not fulfil the rights
of wealth, then the same wealth will be a burden for us in this world
and the hereafter.
In these
verses, the mindset of a Muslim merchant is expressed. He does not
have a socialist of capitalist mindset. He knows that wealth is from
Allah. He believes in life after death, seeks the pleasure of Allah in
his wealth, and makes an investment for his Akhirat. He considers the
rights of others in his wealth.
We will
never know what impact we can have on the underprivileged with the
little contribution we make to them. Today with the rising cost of
food, how significant is the Hadīth of Rasulullah
صلى الله عليه و سلم
.
Abdullah
ibn Umar (R.A) narrates that Rasulullah
صلى الله عليه و سلم
said
اعبدوا الرحمن و اطعموا الطعام و افشموا السلام تدخلوا الجنة بسلام
Worship
Rahman, Feed people and spread Salam and you shall enter Jannah
peacefully. (Tirmidhi v.4 pg. 287, Dar Ihya al-Turath al-Arabiya)
Umm Bujaid (RA) said, “Oh Prophet of Allah, a beggar comes to my door.
I feel ashamed as I don’t have anything to give him.” Rasulullah
صلى الله عليه و سلم
said, “Give whatever you have even if it is a burnt hoof.” (Tirmidhi
v.3 pg. 52, Dar Ihya al-Turath al-Arabiya)
Once, a
hunger driven student was going house to house begging for food. He
came to one house. A woman gave him a glass of milk. He was satisfied
and satiated and there was no need for him to continue begging for
that day. Life carried on. This student qualified as a specialist in
medicine and finally became a consultant to doctors. Once a woman came
with a rare disease and the matter had to be referred to him. He saw
the name and recognised that it was the same woman that gave him a
glass of milk. He gave orders to offer her full treatment. When she
was cured, obviously the bigger worry is the bill. The professor wrote
behind the bill ‘Fully paid for with a glass of milk’. When she saw
that, she was emotional. The doctor then reminded her how he
appreciated her favour to him with a glass of milk. Today it was his
turn to pay her...
May Allah
give us the ability to fulfil these five advices in the Quraan, Ameen.
We now
proceed with some technical issues of Business and Economics.
1) Medical Aid:
All
conventional medical Aid schemes are impermissible because they have
three prohibited elements in them: interest, gambling and uncertainty.
Let me explain all three in the context of Medical Aid.
There is
interest in conventional medical aid cover:
Take for
example I take out a medical cover and pay a premium of R100 a month.
If something happens to me in the second month, and the bill came to
R10 000, the insurance company is obliged to pay the R9 900 excess on
my behalf. I paid only R100 and get a legal right of more than that
amount. That is riba and interest. You are getting something in lieu
of nothing. It is incorrect to assume that the medical aid company
provides medical services. The official client of the hospital is the
patient and not the medical aid company. If the medical aid company
does not pay the bill, the patient will be responsible for the bill.
Interest is clearly Haram.
Allah
Ta’ala mentions,
أَيُّهَا الَّذِينَ آَمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ
الرِّبَا إِنْ كُنْتُمْ مُؤْمِنِينَ () فَإِنْ لَمْ تَفْعَلُوا
فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِ وَإِنْ تُبْتُمْ فَلَكُمْ
رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ () وَإِنْ
كَانَ ذُو عُسْرَةٍ فَنَظِرَةٌ إِلَى مَيْسَرَةٍ وَأَنْ تَصَدَّقُوا
خَيْرٌ لَكُمْ إِنْ كُنْتُمْ تَعْلَمُونَ () وَاتَّقُوا يَوْمًا
تُرْجَعُونَ فِيهِ إِلَى اللَّهِ ثُمَّ تُوَفَّى كُلُّ نَفْسٍ مَا
كَسَبَتْ وَهُمْ لَا يُظْلَمُونَ
“O you
who believe, fear Allah and give up what still remains of riba, if you
are believers. But if you do not (give it up), then listen to the
declaration of war from Allah and His Messenger. However, if you
repent, yours is your principal. Neither wrong, nor be wronged. If
there is one in misery, then (the creditor should allow) deferment
till (his) ease, and that you forgo it as alms is much better for you,
if you really know. Be fearful of a day when you shall be returned to
Allah, then every person shall be paid, in full, what he has earned,
and they shall not be wronged.” (2:278 – 2:281)
قال رسول الله صلى الله عليه وسلم درهم رباً يأكله الرجل وهو يعلم أشد
عند الله من ستةٍ وثلاثين زنيةً
Furthermore, Rasulullah
صلى الله عليه و سلم
mentions, “If a person consumes a single Dirham of Riba knowingly, it
is considered more severe to Allah than 36 acts of fornication.”
إن الربا وإن كثر فإنه يرجع إلى قل
Rasulullah
صلى الله عليه و سلم
is also reported to have mentioned, “Even if Riba (apparently)
increases, it will eventually lead to a decrease.”
There is
gambling in a conventional medical aid cover:
For
example, I pay R100 premium a month, that is R12 00 per year. I may
get sick and benefit for a cover up of R50 000 or may even lose my
premiums. That is qimaar (gambling). You stand to loose or gain.
يَسْأَلُونَكَ عَنِ الْخَمْرِ وَالْمَيْسِرِ قُلْ فِيهِمَا إِثْمٌ
كَبِيرٌ وَمَنَافِعُ لِلنَّاسِ وَإِثْمُهُمَا أَكْبَرُ مِنْ نَفْعِهِمَا
Allah
Ta’ala states in the Holy Quran, “They
ask you about wine and gambling. Say, In both there is great sin, and
some benefits for people. And their sin is greater than their
benefit.” (2:219)
There is
Gharar (uncertainty) in conventional medical aid cover:
Likewise,
my premiums are in lieu of an uncertain event of the future. If I get
sick, the company will pay and if I do not get sick, then they will
not pay. This is Gharar (uncertainty). I don’t know if I will get sick
or not and to what extent.
Rasulullah
صلى الله عليه و سلم
advised
نَهَى رَسُولُ اللَّهِ صلى الله عليه وسلم عَنْ بَيْعِ الْحَصَاةِ وَعَنْ
بَيْعِ الْغَرَرِ
Rasulullah
صلى الله عليه و سلم
prohibited from dealing in a future uncertain event. (Muslim, v. 5 pg.
3, Dar al-Jeil & Dar al-Afaq Jadidah) That is exactly how medical aid
works. I might as well also explain the first part of the Hadīth. In
the pre-Islamic era, there were different types of transactions for
example, Mulamasah, Munabadhah and Bai al-Hasat. Munabazah and
Mulamasah is where a shopkeeper throws an item to the customer or
where the consumer touches an item and the transaction is concluded
thereby. Bai al-Hasat is where the customer would take a pebble from a
container of pebbles and throw it at a particular item. That would
then qualify that item as the item of sale and that transaction would
be concluded. All of this is prohibited.
In
today’s times, we have the toy machine with toys of different values,
a child puts a R5 coin and the machine picks up a toy of any value and
gives it to the child. That also falls under Bai al-Hasat.
Many
people think that the Ulama have a dogmatic and radical approach;
everything that comes their way, they make it Haram.
Dear
brothers,
Ulama
al-Haqq always have
this approach. Whatever was clearly wrong, they proclaimed it. Imagine
if Ulama kept on giving into the demands of people and issuing rulings
to suit the desires of people, then everything would be Halal, nothing
will be Haram. What will be left of Shar’iah?
Allah
Ta’ala condemned the scholars of the jews and christians for the same
reason.
لَوْلا يَنْهَاهُمُ الرَّبَّانِيُّونَ وَالأحْبَارُ عَنْ قَوْلِهِمُ
الإثْمَ وَأَكْلِهِمُ السُّحْتَ
Why do
not the Ulama and saintly people forbid the people from sin and eating
Haram?
(5:63)
Ibrahim
bin Abdur Rehman Uzri narrates that Rasulullah
صلى الله عليه و سلم
said,
يرث هذا العلم من كل خلف عدوله ينفون عنه تحريف الغالين وانتحال المبطلين
و تأويل الجاهلين
The knowledge of Shar’iah will be carried by just people, upright
people. They will refute extremism of the extremists, wrong
attributions of Batil people and wrong interpretations of ignorant
people. (Baihaqi Sunan Kubra v. 10 pg. 209, Dar al-Baz)
It is
mentioned in the Hadīth that The Ulama of the Ahl al-Kitab used to
condemn the people from the wrong. When the people did not listen,
they stopped condemning people and they joined the people in the
wrong. That is when Allah’s punishment came down.
Nevertheless, Ulama must also be conscience of the needs of the people
and create Halal alternatives for the people. The king at the time of
Yusuf (AS) saw a dream that seven weak cows devouring seven healthy
cows and seven green ears of corn and seven dry ones. Yusuf (AS) did
not only give the interpretation that there will be drought he also
showed the solution to it. At the time of rain, the surplus grain
should be kept and hoarded for the time of drought.
We fully
understand the need of medical aid. We did not have the courage to
proclaim conventional medical aid as Halal as it goes dearly against
entrenched principles of Shar’iah. Interest, Gambling and Gharar.
However,
we have been making an effort for a long time to create an
alternative. The public may not know the vigorous efforts, travels and
meetings we had with various medical aid groups and department of
legislature to amend the law to facilitate for the Muslims.
Unfortunately, this was struck down by the department of legislature.
We have those letters placed on our notice board, look at them.
Alhamdulillah, with the many duas of Ulama and Buzurgan-e-Deen, we
found a Shar’iah compliant alternative to this.
There is
a non-Muslim club called Crescent Life style club. You pay a fee in
lieu of a specific item. For example a magazine etc. The fee is in
lieu of that. The company will offer you many voluntary services, for
example if someone travels and wish to use the executive lounge at the
airport or points for certain purchase send a tow truck if you have a
break down etc. Likewise, if member falls ill, the club will offer
medial aid services to you free of charge. There is no compulsion on
the club to provide you the service and if they refuse, you have no
legal claim against the club. However, the club will value its clients
and offer its services to them.
The Darul
Ifta examined the contracts of the Crescent Life Style Club and
concluded that there is no element of interest, gambling or Gharar in
it and therefore it is permissible. If people subscribe to this,
Inshallah it will grow and we will be able to set up our own medical
aid group.
Brothers,
Allah states,
يَا أَيُّهَا الَّذِينَ آَمَنُوا إِنْ تَنْصُرُوا اللَّهَ يَنْصُرْكُمْ
وَيُثَبِّتْ أَقْدَامَكُمْ
“Oh you
who believe, if you assist Allah, He will assist you and fortify your
stance.”
وَالَّذِينَ جَاهَدُوا فِينَا لَنَهْدِيَنَّهُمْ سُبُلَنَا
“And
those who strive for Us, we will certainly guide them to Our paths.”
If we go
the extra mile to create products according to Shariah, Allah will
assist us. We never had the courage to proclaim conventional medical
insurance permissible due to the prohibited elements in it. We went
the extra mile and Allah assisted us.
Similarly, we are about to conclude a unique investment product;
unique in many ways, unique in its traditional values. We could not
believe that we could create a product with conditions mentioned by
the Fuqaha 1,000 years ago. We made the company go back several times
and Alhamdulillah, they complied with all our conditions. The product
is also unique in terms of its returns, insha Allah. When we are
ready, in a month or two, we will announce this product to the public.
People who are really sensitive to Shariah Compliance will appreciate
this product and its handsome returns. *
2) Rental based on Income:
There are
two forms of hiring in Shar’iah. One is to hire the service of an
individual and the other is the usufruct of a property. Hiring an
individual for his services in mentioned in the Quran Karim. Allah
Ta’ala gives us the incident of Musa (AS) when he left Misr and came
to Madyan, he had no shelter or food to eat. He made Dua to Allah
Ta’ala,
رَبِّ إِنِّي لِمَا أَنْزَلْتَ إِلَيَّ مِنْ خَيْرٍ فَقِيرٌ
O Allah
whatever good you send to me, I am in need.”
Musa
u
saw the people of Madyan drawing water from the well, there were two
young girls standing by the well in one corner for their turn to draw
water. Musa (AS) assisted them and took out water from the well.
These
were the daughters of Shuaib (AS). They went home and told their
father about Musa
u
. Shuaib
u
called for Musa
u
and proposed to him the following:
قَالَ إِنِّي أُرِيدُ أَنْ أُنْكِحَكَ إِحْدَى ابْنَتَيَّ هَاتَيْنِ
عَلَى أَنْ تَأْجُرَنِي ثَمَانِيَ حِجَجٍ
“You work
for me for eight years; I will maintain you and get you married to one
of my two daughters”
In this
contract, the terms and conditions of the employment were clear. There
was no ambiguity it which could lead to confusion and dispute.
When a
person enters into any contract be it hiring the services of an
individual or hiring the usufruct, the terms and conditions of the
contract must be very clear. There shouldn’t be any amount of
ambiguity that could lead to a dispute.
The
general trend in rentals is that the rental is specified in rands for
example R10, 000, and an increase of 10% for example every year.
Recently the Darul Ifta has been receiving queries to a particular
rental structure.
When a
person hires a franchise shop, he is required to pay a rental based on
the turnover of the shop. For example, if the turnover is R 100,000
the rent will be 10% of that, which is R 10,000. So if the turnover is
R 200,000, then rent will be based on that R20,000. We have researched
the issue and found an example in the books of Fiqh. In the past,
there was a practice that if a person hires a person to mine gold, he
offers him a percentage of the mined gold. Likewise, the shop has to
be mined and the payment is based on the money that comes in. This is
a sound mechanism and structure to rent and will not lead to a
dispute. This structure is permissible.
3) Pension Payout Machines:
It is the
responsibility of the government to take care of the elderly citizens,
widows, orphans and the poor and needy. In the past few years, we have
been observing the national budget presented by Minister Trevor Manuel
and we commend the government for making a steady increase in the
pension payout budget. We make Dua to Allah Ta’ala to make our
government grow from strength to strength and assist its citizens in
all other places of need.
Dear
respected elders and brothers; we are a Muslim minority living in a
non-Muslim country. Human beings by nature are nationalistic. We love
our country and enjoy all the resources available to us. We should
preserve these resources and assist the government, especially the
underprivileged indigenous citizens wherever we can. If we help and
assist the government, there will be a two-fold benefit. Firstly,
kindness to humanity transcends colour, race and culture. Islam does
not teach us to restrict assistance to colour, race and culture. We
should be good to humans in general. Secondly, if we help and assist
the government, there will be Khair and good for Islam and the Muslims
of South Africa. By creating a strong bond with the government, they
will assist the Muslim public against the mischief and ploys of the
enemies of Islam.
The
Government hired a company to pay out pensions on their behalf. This
company installs machines in various shops and centres. The pensioner
takes the slip and gets a pay out from the shop that has the machine.
The company pays the shop-owner a fee according to the payout to the
pensioners. The bigger the payout; the bigger is the fee. (A
few people have explained this procedure to us. We also learnt that
the company does not pay the shop owner a fee.)
According to Shar’iah, the fee should be in lieu of real services or
in lieu of expenses incurred.
A mere
payout is not a service. However, the shopkeeper incurs expenses for
providing the service, for example when the company pays him, he pays
the withdrawal fees, the telephone costs etc. The owner can charge the
pensioner a standard fee for the expense he incurs in providing this
service.
It is a
common practice that the shopkeeper puts a condition that only those
who wish to purchase from his shop are eligible to use the machine. If
a person does not intend making a purchase, he cannot use the machine.
This condition is un-Islamic.
Firstly,
a pensioner deserves our compassion. It is against compassion to put
such a condition. What if the pensioner requires money for something
else? He will not be able to fulfil his need if he is compelled to
make a purchase.
Secondly,
it is against Shariah to impose on someone to buy from ones shop.
However,
the shopkeeper may offer a discount incentive to the pensioner. If a
pensioner purchases goods from his shop, he will get a discount on
that. This will encourage the pensioner to make a purchase.
4) Hire – Purchase:
The
concept of Hire-Purchase is that there is a cash price and a credit
price. The cash price is cheaper than the credit price.
For
example, a table is R1000 cash. If one buys it on credit then it is
R1600 over 12 month. That is R 150 per month.
If one
purchases on cash then it is in order. This is permissible. If he
purchases on credit, then although the instalment and final price is
fixed and a person pays timeously, the surplus is regarded as interest
and not the purchase price of the item. That can be tested by if a
person makes early payments; he is entitled to a reduction. If it was
the full purchase price, he will not be entitled to an official
reduction.
Actually,
there are two transactions in HP (Hiring and Purchase). In the course
of monthly payment, it is hiring. When the person makes a final
payment, it is a purchase. This is two transactions in one, which is
prohibited in Shariah.
Shari
analysis of this is that there are two transactions in one. Hiring and
Purchase. According to Shariah, to conduct two transactions in one is
incorrect.
5) Futures and Forwards:
In
futures and forwards, the deal is conducted done now but attributed to
a future date. For example, I purchase 1 ton of grains which is
R10,000 now for the end of May. The price of 1 ton grains shot up to
R11,000. I say to you give me the grains and I pay you R10,000. I sell
the grain to a third party for R11,000 and make R1,000 profit or I may
tell you to retain the grains and pay me the R1,000 difference. If the
purchaser is genuine in quest to purchase the grains, then it is
considered as forwards. If he is not interested in purchasing the
grains and he is only interested in earning a profit, then that is a
futures sale.
This type
of sale is not permissible as it is attributed to a future date. It is
a credit deal on both sales. I owe R10,000 and the seller owes me
grains. Rasulullah
صلى الله عليه و سلم
prohibited this.
نهى عن بيع الكالى بالكالى
6) Lay-by Sales:
If a
person purchases an item on lay-by, in effect it is a promise to sell
and purchase on condition that the full amount of the item is paid.
According to Shariah, this is not a bona fide transaction. At
most, it is a promise to sell. The item will belong to the seller and
the deposit money will be an amanat (trust) by the seller.
In order
to make this transaction Shariah Compliant, the deal can be structured
as a complete deal. The seller sells the item and the item by him by
him until full payment. If the purchaser makes the full payment, well
and good, and if he does not then the purchaser can put a condition
that the payment must be done within 30/60/90 days or else the deal
will be deemed cancelled. As such the item will revert to the
ownership of the seller and the deposit money will be returned to the
purchaser. At times, the purchaser does not claim his money. There
could be an agreement that if the purchaser does not claim the money
within 6 months for example it will be given in charity.
7) Deposits:
It is a
common practise that when a person hires a property the property owner
requests deposit from his tenant. Generally, that deposit serves as a
security against unpaid rent, water, lights or damage to the property.
According
to Shariah, the deposit serves as a Rahn (collateral).
It is
permissible to offer collateral in exchange of an established debt or
a future debt. If the rent is not paid or there is damage to the
property, the property owner is entitled to take the deposit money in
exchange of the amount owed to him. It is incorrect for the property
owner to withhold the deposit for no reason or look for some unjust
reason to justify keeping the deposit.
8) Zakat in business:
Zakat is
one of the pillars of Islam. It is through this institution that Allah
Ta’ala provides for the poor and needy. Allah Ta’ala says
وَفِي أَمْوَالِهِمْ حَقٌّ لِلسَّائِلِ وَالْمَحْرُومِ
“In your
wealth there is a right for the seeker and the deprived.”
There are
severe warnings for those who do not pay out Zakat. Allah say,
وَالَّذِينَ يَكْنزونَ الذَّهَبَ وَالْفِضَّةَ وَلا يُنْفِقُونَهَا فِي
سَبِيلِ اللَّهِ فَبَشِّرْهُمْ بِعَذَابٍ أَلِيمٍ
“And
those who hoard up the gold and silver and do not spend in path of
Allah,
then warn them of the painful punishment.”
Rasulullah
صلى الله عليه و سلم
said that when Zakat is mixed in your wealth, then there would not be
any Baraka in it.
I do not
intend giving a detail discourse on Zakat. However, I want to discuss
Zakat on business related issues.
Zakat is
compulsory on a property purchased for resale. If at the time of
purchasing, the person had the intention of resale then that property
is zakatable. Zakat is not compulsory on the business property.
Zakat is
compulsory on stock-in-trade if this stock exceeds the liabilities of
the business and it is equivalent to the Nisab amount and more than
that.
For
example, if the nisab of Zakat is R1000 and your stock is R10,000 you
owe R 5000 for the stock. You deduct R 5000 and you are left with R
5000. Zakat is then 2.5% of R 5000. The Zakat on stock-in-trade can be
calculated at purchase price, or selling price or market price or bulk
price. However, in doing so, the benefit of the Fuqaraa should be
considered and that more the Zakat is, the greater the benefit will be
for the poor.
Zakat is
not compulsory on fixtures, fittings and machinery of the business.
Zakat on
Loans Receivable:
If one is
owed money on a long-term basis for example 3 years and that amount is
Zakatable according to his personal financial condition, then he has
two options. He could pay Zakat on the entire amount due every year or
when the entire amount is paid. If one did not pay Zakat on the amount
for the past three years, then he will have to pay it at once now.
For
example, I lent Ismail R100,000 to be payable after three years. I am
Sahib-e-Nisab.
I could pay Zakat on R100,000 every year which will be R2,500 or when
Ismail pays me out, I pay R7,500 Zakat for the three years.
9) Inheritance:
Rasulullah
صلى الله عليه و سلم
emphasized on correctly drawing up wills and estates.
عن جابر قال : قال رسول الله صلى الله عليه وسلم
من مات على وصية مات على سبيل وسنة ومات على تقى وشهادة ومات مغفورا له
It had
been reported from Jabir that Rasulullah
صلى الله عليه و سلم
said, “Whoever passed away having left behind a Wasiyah has passed
away upon the Sunnah and the right path. He has passed away with piety
as a martyr and he has passed away in whilst being forgiven.” (Ibn
majah v.2 pg. 901, Dar al-Fikr)
وعن أنس قال : قال رسول الله صلى الله عليه وسلم
من قطع ميراث وارثه قطع الله ميراثه من الجنة يوم القيامة
It has
been reported from Anas that Rasulullah
صلى الله عليه و سلم
said, “Whomsoever severs the inheritance of his heirs, Allah will
sever his inheritance of Jannah on the Day of Judgement.” (Shu'ab al-Iman,
V. 6 pg. 224, al-Ilmiyah)
وعن أبي هريرة عن رسول الله صلى الله عليه وسلم قال : إن الرجل ليعمل
والمرأة بطاعة الله ستين سنة ثم يحضرهما الموت فيضاران في الوصية فتجب
لهما النار ثم قرأ أبو هريرةO
مِنْ بَعْدِ وَصِيَّةٍ يُوصَى بِهَا أَوْ دَيْنٍ غَيْرَ مُضَارٍّ
وَصِيَّةً مِنَ اللَّهِ وَاللَّهُ عَلِيمٌ حَلِيمٌ تِلْكَ حُدُودُ
اللَّهِ وَمَنْ يُطِعِ اللَّهَ وَرَسُولَهُ يُدْخِلْهُ جَنَّاتٍ تَجْرِي
مِنْ تَحْتِهَا الْأَنْهَارُ خَالِدِينَ فِيهَا وَذَلِكَ الْفَوْزُ
الْعَظِيمُ
O
Abu
Hurairah reports that Rasulullah
صلى الله عليه و سلم
said, “Verily a man and a woman strive in the obedience of Allah for
sixty years and then death draws upon them whilst they harmed others
in regards to Wasiyah thus making the Hellfire binding upon
themselves.” Thereafter Abu Hurairah recited the verse, After
Wasiyah that is bequeathed or a debt, not causing harm. A Wasiyah from
Allah and Allah is all-Knowing, most Forbearing. These are the limits
of Allah. Whosoever obeys Allah and His Messenger, he will admit him
into gardens underneath which rivers flow, abiding therein forever;
and that is the great success(Abu Dawud v. 3 pg. 72, Dar al-Kutub
al-Arabi)
Once, a
pious saint visited a sick friend. He remained at the bedside of his
friend for a considerable time. His friend was on his deathbed and it
was only a matter of time before he would pass away. As the evening
was setting in, the family members lit the lanterns. A short while
later, his friend passed away. Immediately the pious saint blew out
the lanterns. When he was asked why he acted in such a peculiar
manner, he responded by saying that the oil that was being used for
the lanterns belonged to his friend. However, as soon as he passes
away, the oil and every other possession of his transferred to the
ownership of his heirs. Thus, it will be impermissible to use their
property without their prior consent.
Another
incident is mentioned regarding Mufti Shafi
رحمه الله
. During his lifetime, he bestowed all of his possessions to his wife
excluding any item that was found in his private room. He asked his
son for a tumbler of water one day. After drinking the water, he asked
his son to return the tumbler to the kitchen. The son responded that
he would return in a little while. Mufti Shafi
رحمه الله
told him to return it to the kitchen quickly. His son asked him what
difference it would make if he returned it now or later. Mufti Shafi
رحمه الله
responded by saying that Malak al-Maut could appear at any time to
extract his soul and if that tumbler was found in his room, then he
would have usurped the right and belongings of his wife.
What is
excluded from the estate?
a)
Haram wealth: Haram wealth is not recognized in Shar’iah. The money
does not belong to you it belongs to someone else. It is for that
reason that debt must be paid out first.
Paying of
Debts:
Ahadith
on the rights of creditors:
وعن محمد بن عبد الله بن جحش قال : كنا جلوسا بفناء المسجد حيث يوضع
الجنائز ورسول الله جالس بين ظهرينا فرفع رسول الله صلى الله عليه وسلم
بصره قبل السماء فنظر ثم طأطأ بصره ووضع يده على جبهته قال : " سبحان
الله سبحان الله ما نزل من التشديد ؟ " قال : فسكتنا يومنا وليلتنا فلم
نر إلا خيرا حتى أصبحنا قال محمد : فسألت رسول الله صلى الله عليه وسلم :
ما التشديد الذي نزل ؟ قال : " في الدين والذي نفس محمد بيده لو أن رجلا
قتل في سبيل الله ثم عاش ثم قتل في سبيل الله ثم عاش ثم قتل في سبيل الله
ثم عاش وعليه دين ما دخل الجنة حتى يقضى دينه
It has
been reported from Muhammad bin Abdillah bin Jahsh that he said, “We
were sitting in the courtyard of the Musjid where the Janazas used to
be placed and Rasulullah
صلى الله عليه و سلم
was sitting amongst us when he suddenly lifted his gaze towards the
sky staring. Thereafter, he turned his gaze and placed his hand upon
his forehead stating, ‘Subhanallah, Subhanallah, what severity has
descended!’ We remained silent for that day and night but we only
witnessed tranquillity until the morning.” Muhammad (the narrator)
then stated, “Thus I asked Rasulullah
صلى الله عليه و سلم
‘What is the severity that descended?’ He
صلى الله عليه و سلم
said, ‘In regards to debt. By the Being in whose grasp lies the life
of Muhammad
صلى الله عليه و سلم
if
a person is martyred in the path of Allah and then brought back to
life and martyred in the path of Allah and then brought back to life
and martyred again in the path of Allah and then brought back to life
and he had a debt upon him, he will not enter Jannah until he repays
his debt!”
(Musnad Ahmad v. 5 pg. 289, Muasasa Qurtuba)
وعن أبي سعيد الخدري قال : أتي النبي صلى الله عليه وسلم بجنازة ليصلي
عليها فقال : " هل على صاحبكم دين
؟ " قالوا : نعم قال : " هل ترك له من وفاء ؟ " قالوا : لا قال : " صلوا
على صاحبكم " قال علي بن أبي طالب : علي دينه يا رسول الله فتقدم فصلى
عليه
Abu
Sa’eed Khudri reported that, “A deceased person was brought before
Rasulullah
صلى الله عليه و سلم
so
that he may perform the Janazah Salah. He
صلى الله عليه و سلم
stated, ‘Is there a debt upon your companion?’ They replied, ‘Yes.’ He
صلى الله عليه و سلم
said, ‘Has he left behind a means of fulfilment?’ They replied, ‘No.’
He
صلى الله عليه و سلم
then said, ‘You perform Janazah Salah upon your companion.’ Ali ibn
Abi Talib then stated, ‘Oh Rasulullah
صلى الله عليه و سلم,
I undertake the responsibility of his debt.’ Thereafter Rasulullah
صلى الله عليه و سلم
came forward and performed the Salah.” (Bayhaqi Sunan Kubra v. 6 pg.
73, Majlis Da’ira al-Ma’arif al-Nizamiya)
وروي أن معاذا كان يدان فأتى غرماؤه إلى النبي صلى الله عليه وسلم فباع
النبي صلى الله عليه وسلم ماله كله في دينه حتى قام معاذ بغير شيء . مرسل
هذا لفظ المصابيح
It has
been reported that Muadh was indebted and his creditors came to
Rasulullah
صلى الله عليه و سلم
Thereafter, Rasulullah
صلى الله عليه و سلم
sold all of Muadh’s wealth because of his debt until Muadh was left
with nothing.” (Bayhaqi Sunan Kubra v. 6 pg. 48, Majlis Da’ira al-Ma’arif
al-Nizamiya)
وعن سعد بن الأطول قال : مات أخي وترك ثلاثمائة دينار وترك ولدا صغارا
فأردت أن أنفق عليهم فقال لي رسول الله صلى الله عليه وسلم : " إن أخلك
محبوس بدينه فاقض عنه " . قال : فذهبت فقضيت عنه ولم تبق إلا امرأة تدعي
دينارين وليست لها بينة قال : " أعطها فإنها صدقة
Sa’d bin
Al-Atwal has stated, “My brother passed away and left behind 300
Dinars and some small children as well thus I intend to spend some of
the money upon them. Rasulullah
صلى الله عليه و سلم,
‘Your brother is being held back on account of his debt thus fulfil it
on his behalf.’ Sa’d then said, ‘I went and fulfilled it for him and
there only remained one woman who was claiming two Dinars for which
she had no proof. He
صلى الله عليه و سلم,
‘Give it to her for verily it is Sadaqah.”
(Musnad Ahmad v. 4 pg. 136, Muasasa Qurtuba)
Rasulullah
صلى الله عليه و سلم
has stated, “Postponing repayment of a debt by a wealthy person is
oppression.”
مطل الغني ظلم (بخارى)
He also states, “Delay (in repayment) of a wealthy person authorizes
attacks on his respect and punitive measures.”
لي الواجد يحل عرضه وعقوبته (ابو داود)
It is unfortunate that many solvent debtors delay in paying their
debts. They duck and dive and claim not having the means to pay their
debts. Yet, they go for Umrah with the family, buy a new BMW and
Mercedes, put up business houses and buy holiday flats. This is Zulm
and oppression to the creditors.
The other things that are excluded from the estate are:
b)
Rahn (collateral): The deceased took a loan and placed an item as
collateral. If there are not sufficient funds to release the
collateral, that will be excluded from the estate. For example, I take
a loan of R 1 million from you and place my house as collateral. If
the estate cannot release the house, the house will be excluded from
the estate. In this, the appropriate ruling of Shariah will be
considered after observing all the laws of Rahn.
c)
Insurances and endowment policies are Haram. They have elements of
interest and gambling in them and they are not recognized as valid
ownership in Shariah. They will be excluded from the estate. The
proceeds of such policies should be given in Sadaqah to the poor and
needy.
d)
Government pension funds will be excluded from the estate if the
payout was after the death of the subscriber. If the Government paid
the subscriber during his lifetime, then that payout will form part of
the estate.
The
Business of the Deceased:
a)
If the deceased owned a business, upon his demise, immediately stock
must be taken to ensure the exact value of the business. It is also
advisable that the heirs or their representatives be present during
stock taking to avoid doubts and suspicion of cheating.
b)
Once a person passes away, all his heirs have a share in the assets of
the actual business.
c)
It is also not permissible for some heirs to run the business and earn
profits without entering into a formal partnership with the heirs. If
the heirs give them consent then they will be partners and all the
laws of partnership will govern that business. The active partners
will be representatives (Wakeels) of the sleeping partners. If there
is a profit, they will share in it. If there is a loss, they will
share in the loss as well.
d)
If the active heirs continue with the business without permission for
the other heirs and the business expands, the heirs will be entitled
to the share according to the expanded business. For example, the
business was R100,000. After five years, the business is R1 million.
The heirs will be entitled to their share from R1 million. Besides
that, if there was a loss, then that will be the responsibility of
only the active partner, not all the heirs. This is the consequence of
not entering into a formal partnership.
e)
If some heirs want an immediate pay out from the business, that is
their right. If the business has cash, that should be given. If the
business does not have cash, then the heir cannot insist on a cash
payout. He will be entitled to the stock of the business according to
his share. I have observed that there is lots of negligence in this
area of inheritance. Some heirs simply go on running the business with
total disregard to the heirs’ rights. Their only excuse is to apply
business skills and acumen. That is important but it is important to
consult a Darul Ifta and then work around the issue.
Often a
father owns a business and the children run the business. The children
are given an allowance from the father for running the business. When
the father passes away the other heirs claim a share in the business
but the children who ran the business get upset as they sacrificed all
their efforts and time in running and promoting the business. That
then leads to family disputes and breaking family ties. What is the
point of trying to secure your children when that very business will
bring grief and disunity to the family? The father should pay a
standard salary or sell a share to the children to secure them.
Gifts:
It often
happens that parents give their children gifts in their lifetime.
Parents should maintain equality among their children. They should not
favour one child over the other. If they do, that will bread animosity
among the children and cause disunity. Nevertheless, if the parents
favoured one child over the other and gave one child more than the
other without a valid reason, that will be a sin but the gifting will
be valid. It is important to understand some basic principles of
gifting in Shariah. Gifting takes place with a proposal, for example,
I say “I am giving you this car as a gift.” You then accept that gift.
Further to that, you take physical possession of the gifted item and
have full ownership of the gifted item. If the item is not in your
possession, the gift is incomplete. If the father claims to give his
car to his son as a gift and the son does not have physical possession
of the car, the car still belongs to the father. Of the father passes
away, the car will form part of the estate. One of the conditions for
a gift to be valid is it must be completely separate and independent.
If a father owns shares in a property and the shares of the property
are not separated, the gifting of such a share is not valid.
10)
Advice & Conclusion:
According
to some Mufassireen, the very last verse that was revealed and upon
which the Wahi terminated was, “Be fearful of a day when you shall be
returned to Allah, then every person shall be paid, in full, what he
has earned, and they shall not be wronged.”
وَاتَّقُوا يَوْمًا تُرْجَعُونَ فِيهِ إِلَى اللَّهِ ثُمَّ تُوَفَّى
كُلُّ نَفْسٍ مَا كَسَبَتْ وَهُمْ لَا يُظْلَمُون
A Muslim
must always be conscious of death, life after death – accountability
in the court of Allah. The more a person is conscious of death, the
more straight and upright he will be. The core of our mutual dealing
is to be truthful and honest.
During
the Hajj al-Wada’, Rasulullah
صلى الله عليه و سلم
said, “A loaned item must be returned, a borrowed animal must be given
back, a debt must be paid and guarantors will be responsible.”
الْعَارِيَةُ مُؤَدَّاةٌ وَالزَّعِيمُ غَارِمٌ وَالدَّيْنُ مَقْضِىٌّ
All
three advises reflect a common course – Be Honest and Truthful! If you
borrowed an item then return it. If you stand as a guarantor then keep
up to it and pay your creditor.
Remember,
truthfulness and honesty yields Baraka in ones wealth.
I will
share two incidents with you and terminate.
Once
person purchased a land and found a bag of gold in it. He went to the
seller to return the bad of gold, saying that I bought the land and
not the gold. This was his honesty. On the other side, the seller said
that I sold you the land with whatever it had. Both refused to take
the bad of gold. They referred the matter to an arbitrator. He asked,
“do you have children?” One had a son and the other had a daughter.
The arbitrator ruled to that they get the boy and girl married and
give both of them the bag of gold. This is Baraka. Both were honest
and Allah gave it to the children of both.
One
person went for Hajj and bought jewellery and lost it. Another person
found the jewellery and he was an honest person. He announced it and
returned it to the owner. The person who found the jewellery was
returning home by boat. They got stranded and landed on an island. He
was a learned person. He stayed on the island and taught children
there. Somebody offered him his daughter in marriage. When he got
married, he was surprised to see the jewellery on his wife. It was
exactly like the one he found in Makkah. His wife told him the history
of the jewellery, how her father bought it and it got lost and an
honest person returned the jewellery.
She said,
“My father always made Dua that Oh Allah grant my daughter an honest
husband like the person who returned the jewellery to me”. The husband
said, “It humbles me to tell you that I am the person who found the
jewellery and returned it to your father.
Once
during Salat al-Kusoof (Salah at the time of Solar eclipse),
Rasulullah
صلى الله عليه و سلم
was shown Jannah and Jahannum. He was also shown Sahib al-Mihjan (the
person with the stick). This person used to go for Hajj and he would
keep a stick which was hooked at the end. He would hook the valuables
of people. If the owner noticed this, he would apologize. If the owner
did not notice it, he would steal the item.
Today, many institutions hook people with Islamic terminologies such
as Murabah, Mudarabah and Musharakah and mislead them. Fear Allah and
accountability after death and make Tawbah.
Allamah Busairi beautifully states,
يا
نفس لا تقنطي من زلةٍ عظمـــــت إن الكبائر في الغفران
كاللمـــــــــمِ
لعل
رحمة ربي حين يقســـــــــــمها تأتي على حسب العصيان في القسمِ
يارب
واجعل رجائي غير منعكـــسٍ لديك واجعل حسابي غير منخــــرمِ
والطف
بعبدك في الدارين إن لـــــه صبراً متى تدعه الأهوال ينهــــــز
O my soul do not become despondent due to your grievous sins.
Verily major sins when pardoned are minor.
Perhaps the mercy of my Lord when distributed,
Would be distributed in proportion to the sins.
O my Lord (Sustainer)! Make my hopes, not unfulfilled by you.
And do not make my reckoning (of deeds) destructive.
Be kind to Your Servant in both the worlds,
For verily his patience, when called upon by hardships, runs away.
It is about time we stopped asking, “What is my bank balance?” We
should start asking, “How did I acquire mu bank balance?” |
