Q: I supply certain companies with items such as machinery and equipment. Because the amounts are high can I take on people to invest with me where I give them +-10% profit of the profit? For instance if someone puts R100,000 capital can I give him +- R8,000-R10,000 based on that deal, without a guarantee applying on profits. Is that permissible?
A: It is not permissible to fix a sum of money as ‘profit’ for an investor. The percentage profit-share should be stipulated, e.g. 10%, 20%, etc. After paying all trade expenses, the percentage share should be given from the net profit.
Aadiel Moosagie (Mufti)
Council of Ulama Eastern Cape
+27 83 982 6968
[email protected]
www.councilofulama.co.za
@UlamaCouncilEC