Using Zakaat funds on Muslims in Turkey and Afghanistan

Mar 22, 2023 | Banking/ Interest

Question:-

1. If you have interest money, or unlawful money, and you want to discharge it, can you give it to muslims in Turkey or Afghanistan? Can you give it to your local community to fix potholes as the government is not repairing roads? If you give it to an organization, are you allowed to ask for a section 18a certificate and claim a deduction for the amount given in your tax return?

2.  I was out of a job and claimed UIF. According to my calculation, I think I was only entitled to R10 000 but I got paid R50 000. The government doesn’t provide a breakdown of the amount they paid, and when I asked them for a breakdown as they might have overpaid me, they just gave me the formula to work it out. My estimation might be wrong as there are many factors to consider. Am i allowed to use the full R50 000 ?
What should I do with the money if i’m not allowed to use it?

Answer:-

1. Interest money can be given to poor Muslims that are eligible to receive Zakaat, or poor non-Muslims. Hence, it may be given to needy Muslims in Turkey and Afghanistan, on condition that they are eligible to receive Zakaat. We are not sure of what you mean when you say unlawful money; if you are referring to money that was unjustly usurped or stolen from someone then it should be returned to the owner.

2. Interest funds cannot be used to repair potholes as public roads are used by both the wealthy and the poor. Yes, if the funds are given to a poor Muslim person that is eligible to receive Zakaat for example, and he then voluntarily utilizes it to repair potholes, then there is no harm in doing so.

3. There is no problem in requesting a section 18a certificate. However, the refund acquired from the revenue should also be given in charity to the poor. It is not permissible to benefit from interest funds at all, whether directly or indirectly. Since the tax refund was granted because of spending interest funds in charity, it will not be permissible to utilize it.

4. The funds are a gift to you from the government. Since they are confident that the payout was correctly calculated it will be correct for you to utilize the funds.

ALLAH TA’ALA KNOWS BEST!

ANSWERED BY:

Mufti Mohammed Desai

Date: 29 Shabaan 1444 / 22 March 2023

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