Workshop on Zakah for Islamic Financial Institutions
The Workshop on Zakah for Islamic Financial Institutions was organized by the International Shari‘ah Research Academy for Islamic Finance (ISRA) in collaboration with Bank Negara Malaysia (BNM) on the 3rd of May, 2011, from 8:30 am to 5:00 pm, at Lanai Kijang, BNM.
The workshop was attended by around 50 invited participants from Bank Negara Malaysia (BNM), Islamic Financial Institutions (IFIs), Pusat Pungutan Zakat (PPZ), and universities.
The Zakah Workshop was an event supporting the Islamic finance agenda by serving as a platform for industry experts to elucidate the Shari‘ah issues concerning zakah obligations on Islamic financial institutions (IFIs). They further explored the implications of Shari‘ah decisions on existing zakah practices and the challenges faced by IFIs in determining and discharging zakah obligations.
The workshop started with a recitation of verses from the Holy Qur’an, followed by welcoming and introductory remarks by Assoc. Prof. Dr Akram Laldin, the executive director of ISRA.
The first session consisted of two paper presentations and comments by three discussants. The first paper, titled: “Legal Entity and Zakah Obligations”, was presented by Assoc. Prof. Dr Said Bouheraoua, senior researcher at ISRA. The paper discussed the following issues:
- Legal Entities in Common & Civil Law
- Legal Entities in Islamic Law
- Zakah and its Legal Rulings
- Shari‘ah Rulings on Paying Zakah
- Zakah Obligations on Entirely Privately Owned Islamic Financial Institutions
- Zakah Obligations on Islamic Financial Institutions Owned (Wholly or Partially) by a Government
- Zakah Obligations on Islamic Financial Institutions Owned Entirely or Partially by Non-Muslims
The second paper, titled: Zakah on a Shakhsiyyah ‘Itibariyyah (Legal Entity), was presented by Assist. Prof. Dr Aznan Hassan, member of the Shari‘ah Advisory Council, BNM. The paper discussed the following issues:
- Does Islam Acknowledge the Concept of Legal Entity?
- How to Implement Zakah on Such Legal Entity?
- How to Pay Zakah for Corporate Entities?
- Is Incomplete Ownership Subject to Zakah under the Corporate Zakah?
- Challenges Faced in the Imposition of Corporate Zakah
The presentation of both papers was followed by comments from three discussants: Dr Luqman Abdullah from the Department of Fiqh and Usul al-Fiqh, UM; Dr Azman Mohd Noor, Kulliyyah Fiqh and Usul al-Fiqh, IIUM; and Dr. Mujaini Tarimin, Faculty of Education and Social Sciences, Unisel.
The afternoon session was a forum moderated by Ustaz Suhaimi Mohd Yusuf from BNM and chaired by three panelists: Prof. Dr. Ashraf Md Hashim, member of Shari‘ah Advisory Council, BNM; Dr Luqman Abdullah from the Department of Fiqh and Usul al-Fiqh, UM; and Dr Azman Mohd Noor, Kulliyyah Fiqh and Usul al-Fiqh, IIUM.
The forum title was: “Zakah for Islamic Financial Institutions: Issues and Challenges”. The interaction between practitioners and Shari‘ah experts was excellent. Prior to the conclusion of the workshop, the committee conducted a survey in the form of a vote on the persistent issues regarding Zakah of IFIs, followed by filling out a feedback form. The executive director of ISRA then presented the resolutions and opened the floor for comments. The workshop ended at 5:15 pm with du‘a and tasbih kaffarah.