• Home
  • About
    • About Us
    • Testimonials
    • The Team
  • Q&A
    • Worship
      • Purification
      • Salah
      • Zakat
      • Fasting
      • Hajj
      • Qurbani/Udhiyyah
      • Death & Burial
    • Commerce, Finance & Investment
      • Trade & Business
      • Jobs & Services
      • Investments
      • Schemes & Products
      • Islamic Finance & Banking
    • Nikah & Divorce
      • Nikah
      • Divorce
    • Social Issues
    • Medical Issues
    • Wills & Inheritance
    • Advice
  • Research & Essays
  • Articles
  • Contact Us
  • Nisab

chat
Darul Fiqh Darul Fiqh
Darul Fiqh Darul Fiqh
  • Home
  • About
    • About Us
    • Testimonials
    • The Team
  • Q&A
    • Worship
      • Purification
      • Salah
      • Zakat
      • Fasting
      • Hajj
      • Qurbani/Udhiyyah
      • Death & Burial
    • Commerce, Finance & Investment
      • Trade & Business
      • Jobs & Services
      • Investments
      • Schemes & Products
      • Islamic Finance & Banking
    • Nikah & Divorce
      • Nikah
      • Divorce
    • Social Issues
    • Medical Issues
    • Wills & Inheritance
    • Advice
  • Research & Essays
  • Articles
  • Contact Us
  • Nisab

Question:

Assalamu alaikum, are we allowed to claim a donation tax refund from the government for zakat donations and also for haram money that had to be disposed of ? [Question Published as Received]

The Fatwa

In the Name of Allah, the Most Gracious, the Most Merciful

The Answer

[Q1] It is permissible for a corporate company to claim additional tax relief on any donations made to a charity via their company account(s). The amount refunded or deducted from the tax bill of the donating company would be classed as a gift (hibah) from the Government, who are forfeiting their right of taxation due to the taxable amount being donated to a charity.

When a company makes a qualifying donation to a charity or CASC, the amount paid can be set against profits for Corporation Tax purposes. The company can make a claim in its Corporation Tax Self-Assessment return to set the amount of the donation against its taxable profits, to the extent that it reduces the chargeable profit to nil.

[Q2] Donating ḥarām and unlawful money to charity  is solely to absolve oneself from owning impermissible funds. The tax relief is credited by the government, who are independently forfeiting their right of taxation. Hence, the receivable amount in this case will be permissible.

And Almighty Allah Alone Knows Best

Maulana Ammar Y Badat
Trainee Mufti

Reviewed and approved by
Mufti Faraz Adam
Darul Iftaa Muadh ibn Jabal
www.fatwa-centre.com | www.darulfiqh.com 

DISCLAIMER:

The views and opinions expressed in this answer belong only to the author and do not in any way represent or reflect the views of any institutions to which he may be affiliated.

Arguments and ideas propounded in this answer are based on the juristic interpretations and reasoning of the author. Given that contemporary issues and interpretations of contemporary issues are subjective in nature, another Mufti may reach different conclusions to the one expressed by the author. Whilst every effort has been taken to ensure total accuracy and soundness from a Shari’ah perspective, the author is open to any correction or juristic guidance. On the event of any juristic shortcomings, the author will retract any or all of the conclusions expressed within this answer.

The Shari’ah ruling given herein is based specifically on the scenario in question.  The author bears no responsibility towards any party that acts or does not act on this answer and is exempted from any and all forms of loss or damage.  This answer may not be used as evidence in any court of law without prior written consent from the author.  Consideration is only given and is restricted to the specific links provided, the author does not endorse nor approve of any other content the website may contain.

Total
0
Shares
Share 0
Tweet 0
Previous Article
  • Q&A
  • Schemes & products

Taking part in free bets on gambling platforms

  • February 22, 2023
Read More
Next Article
  • Q&A
  • Wills & Inheritance

Does a Pension Investment Form Part of the Sharia Estate of the Deceased?

  • February 27, 2023
Read More
You May Also Find
Read More
  • Halal and Haram
  • Q&A

Consuming a sauce with crustacean-based ingredients

Read More
  • Q&A
  • Salah

How many Sadja Tilawa have to be performed if one listens to multiple Sajda verses from different students?

Read More
  • Q&A
  • Salah

How to fill a gap in the row in front of you

Read More
  • Halal and Haram
  • Q&A

Is the Jus-Roll Puff Pastry Halal?

Read More
  • Q&A
  • Wills & Inheritance

Does a Pension Investment Form Part of the Sharia Estate of the Deceased?

Read More
  • Q&A
  • Schemes & products

Taking part in free bets on gambling platforms

Read More
  • Fasting
  • Q&A
  • Worship

How to deal with confusion in Iftar time

Read More
  • Purification
  • Q&A

Is it permissible to recite Surah Fatiha as a dua in the state of Haydh?

Subscribe to our Newsletter
Recent Posts
  • Consuming a sauce with crustacean-based ingredients
    • March 14, 2023
  • How many Sadja Tilawa have to be performed if one listens to multiple Sajda verses from different students?
    • March 12, 2023
  • How to fill a gap in the row in front of you
    • March 7, 2023
  • Is the Jus-Roll Puff Pastry Halal?
    • February 27, 2023
  • Does a Pension Investment Form Part of the Sharia Estate of the Deceased?
    • February 27, 2023

Darul Fiqh is a Fatwa website providing Islamic answers to everyday Fiqh issues and questions.

Powered by

Subscribe to Our Newsletter
Follow Us

Input your search keywords and press Enter.