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Partnership on Paper

Answered as per Hanafi Fiqh by CouncilofUlama.co.za

Q: A person is running a business. According to the registration with the necessary government agency the business is a partnership between the person and his mother. However, the son is the one running the business and taking all the liabilities, the mother is only a partner on paper. This is accepted by the son. Now the son has incurred great losses and has been advised to source zakat funds because his debt is far greater than his only asset a piece of land. The debt is at $400,000 and his land has a maximum value of $150,000 (which we doubt he will be able to get). The question is that can the person’s brother and sister give him the zakat to assist him knowing that the mother is a partner in the business? If not then can they make niyyah that the zakat is for the brother’s share of the debt?

A: If in reality the son was the sole owner and proprietor of the business and the mum was included on paper merely for registration purposes then the the complete amount of the the business credit will be considered when determining his eligibility for zakaat.

And Allah Knows Best

Aadiel Moosagie (Mufti)
Council of Ulama Eastern Cape
Tel/Whatsapp: +27 83 982 6968
[email protected]
www.councilofulama.co.za
@UlamaCouncilEC

This answer was collected from CouncilofUlama.co.za, which is operated under the supervision of Council of Ulama Eastern Cape, South Africa.

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