Tuesday, January 5, 2010

Obligatory Zakah for Corporate Entity

I found this is great article for us....

The Indonesian council of ulama has issued a fatwa of zakah (charitable deeds) which is wajib or obligatory for corporate entity, but to whose accountability? Because in Islamic rule, wajib means compulsory where the doer will get the reward in the hereafter but the one who refused to do so will received a punishment (as he has committed a sin), and yet, for a corporation, who will be responsible and oblige to follow the said fatwa? Who will get the punishment in the hereafter, for not paying zakah? Those questionnaires have emerged during the seminar of the fatwa of zakah by Indonesian Council of Ulama, which is obligatory and how it will be applied, the seminar was held on (2/4) at BNI Syariah.

In responds to those questionnaires, Wahfiudin, MBA, the Islamic bankers, and members of shariah board of Dompet Dhuafa has responded:

“For corporate entities the obligation to pay zakah is for the stock holders and the middle management individually, not under the name of a corporation. As explained by Wahfiudin.

Yet, there is some other problem, such as: for public entity where the stock has been listing in a stock exchange there will be some complication, since the owner of the stocks will rapidly change on daily basis.

“Therefore, before going to implement this fatwa, all legal aspects must be made cleared first,” exclaimed Wahfiudin.

Read more at pkesinteraktif