Trade and Commerce

Bitcoin or Crypto Currency Trading

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Q: Is online trading of Bitcoin, one coin (crypto currency), etc halal?

A:
Trading in Bitcoin currency or crypto currency is permissible. This has become a valid means of exchange over the internet with many companies and individuals. The Bitcoin has become a virtual or digital coin that represents real money. Real money was used to buy Bitcoins which are then used to trade over the internet. The end user is able to cash in the Bitcoins and receive real money for his trade, etc. Therefore this type of trade is Halaal and lawful

Allah Ta’ala Knows Best

Mufti Siraj Desai
Darul-Uloom Abubakr

Last Updated on Thursday, 30 June 2016 08:26

Payment of Debt

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Q: I owed someone money a large amount of money. I'm almost sure the person I sent paid him because I trust that person for years and have never had a problem with them. I checked the money with someone else the day before I sent it to be paid but he denies or doesn't remember me paying him and he didn't give the person a receipt. He didn't wipe out the money that I paid him. If the person that I sent didn't steal the money and did pay him but he must have forgotten because he was very busy so what's the ruling? Basically there's no proof that I paid him but Allah Ta'ala knows the money was paid or not.

A:
If the person you sent with the payment can testify on oath, in front of the other, that he had indeed paid him the money, then you are absolved of the debt. However if he says that he cannot recall delivering the money to the other person (i.e. to your creditor) then he is responsible for the debt, not you. For then it is certain you gave him the money; the doubt is from his side whether he passed it on to your creditor or not; hence he (the one you sent with payment) is responsible to pay the money from his side.

I trust the above is clear

Allah Ta’ala knows best

Mufti Siraj Desai
Darul-Uloom Abubakr

Dealer's Incentive Commission

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Q: My husband recently applied to work as a car salesman and during the interview basic salary and commission as well as 6% of the dealer incentive commission (DIC) was discussed. Is DIC haraam? What exactly is it?

A:
Dealer’s incentive commission is a cash amount that car manufacturers pay to the dealer who buys the cars from them to resell. Sometimes manufacturers want the dealers to sell more of their cars, so they offer a cash payback if the dealer reaches a certain target. According to Shariah this is permissible. It is like a gift or a prize for achieving a certain goal.

However, it must be known that to earn a percentage of DIC as a car salesman is not permissible. The reason for this is that the exact amount of DIC is not known, because some car dealers don’t disclose it, or the amount can fluctuate from one model to another. Since the DIC amount is not known, it is obvious that any percentage of DIC is also unknown and ambiguous. When one is offered an ambiguous or uncertain amount as part of one’s salary, such an agreement of employ is null and void. Therefore, it is not permissible for a Muslim to accept such an employment unless this commission is done away with.

To summarize, there is nothing wrong with the DIC as such; what is wrong is to fix a percentage of the DIC as part of a worker’s salary, because the percentage is uncertain.

Allah Ta’ala knows best

Mufti Siraj Desai
Darul-Uloom Abubakr

FNB Musharakah Contract

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Q: Is the FNB Islamic home finance permissible based on the musharakah contract in South Africa?

A:
The Musharakah contract of FNB Islamic Finance is acceptable. You may enter into such a contract.

Allah Ta’ala knows best

Mufti Siraj Desai

Investment in Livestock

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Q: I have an investment that invests in livestock, I have requested a Rand value of the investment to determine my zakaat for 1436. I would like to know if the way I have gone about calculating my zakaat is correct? I was advised that the value of zakaat on livestock is greater than the respective rand value?

A:
If your investment entails a partnership or joint ownership in livestock then the zakaat has to be calculated according to the number of heads of livestock and not on rand value. There is a table that Shariah has drawn up for zakaat on livestock. You and your partners will have to calculate your zakaat according to this table. However, after you have determined the number of animals to be given in zakaat, you are allowed to give the rand value of those animals in zakaat instead of the actual animals.

If on the other hand, you are not a partner in ownership of the animals but invested your money only to share in profits, then there is no zakaat on the animals but on the cash money you accumulate after one Islamic year. For example, you gave someone R100,000 to do business with the condition that you will receive 50 percent of whatever profits he makes in any Halaal trade. This person then decides to trade in livestock with your cash capital. He buys and sells sheep or cattle, after which he passes on to you half of the profits accrued. In such a case, you are not liable for zakaat on the stock. Instead your zakaat will be payable on the cash money you received that remains in your possession after 12 Islamic months.

Allah Ta’ala knows best

If your investment is any different to what I have described above, please let me know, for the ruling might differ

Mufti Siraj Desai

Domestic Repair Schemes

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Q: Are domestic repair schemes permissible? For example, where one pays £10 a month and when the machine breaks down all costs are covered. Similarly, paying monthly installments for healthcare when the government health systems are failing.

A
: A domestic repair scheme is a form of insurance, and generally Islam does not permit insurance on account of the riba factor. However, if a service agreement is entered into in terms of which the company will service the machine and also do repairs over a fixed period of time, then this is permissible. But just to have a vague agreement that only covers incidental damage indefinitely, this is not permissible.

As regards healthcare, some Ulema have give permission for people who have chronic illnesses or mother who will need maternity care to take out health insurance schemes. One may act on this

Allah Ta’ala knows best

Mufti Siraj Desai
Darul-Uloom Abubakr

Leasing to a Bank

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Q: 1. Is it permissible for an Islamic organisation to rent/lease their property out to a bank?
2. If not, and its already leased out, what is the way forward?

A
: It is not permissible for Muslims to lease premises to a bank. This falls under the Quranic prohibition of aiding and abetting sin. In this case, it is the sin of ribaa.

If premises were already leased to the bank then, firstly, an attempt should be made to cancel the lease. The organisation should consult with its attorneys to see if this is possible, though with banks it might be difficult to do this. So if this is not possible then the next thing to do is to inform the bank that its lease will not be renewed once it expires. Thereafter rental received from the bank should not be used for Musjid or madresa. Instead the organisation should spend it on welfare and social work, such as feeding schemes for the poor, grants to the poor and needy, food parcels, blankets, even bursaries for poor students, etc.

Allah Ta'ala knows best

Mufti Siraj Desai
Darul-Uloom Abubakr
Port Elizabeth
South Africa

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