INDIVIDUAL INVESTORS' LIABILITY TO ZAKAT: A Comparative Analysis of Assets Valuation Models of Saudi Arabia, the Sudan and Malaysia
INDIVIDUAL INVESTORS' LIABILITY TO ZAKAT: A Comparative Analysis of Assets Valuation Models of Saudi Arabia, the Sudan and Malaysia
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Date
1998-12
Authors
HALIRU, DIKKO
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Abstract
Of the five fundamental pillars of Islam, Zakat and Holy
Pilgrimage to Mecca are the less understood by Muslims, largely,
because pilgrimage is only prescribed on those who are healthy and
have the means to travel and Zakat equally is prescribed on those who
have earned enough to save minimum of N80,000 for 12 months.
The subject of Zakat has even become less popular among the
investing public as it is always wrongly associated with liquid cash not
only encompassing all growing assets.
The contention, is not only limited to whether to pay Zakat on
business assets, but more importantly the valuation framework, which
many willing payers find to be very tasking and easy to avoid payment
on such ground.
The little contribution of this work is more of creating awareness
on the Zakatability of business assets and also shedding more light in
the complex valuation framework within the context of modern
production mechanism and business arena.
We have reviewed the assessment and collection methods of
Saudi Arabia, Malaysia, and the Sudan, which # based fundamentally on shareholders fund (owner's equity) and networking capital
concepts.
In order to effectively and religiously discharge Zakat obligation,
working within the context of "it is better to overpay than deliberate
underpay". It became imperative to reconsider the valuation of
growing assets. The objective is to neutralise the effect of mingling of
the sources and application of funds in business.
Description
BEING A PROJECT SUBMITTED TO THE POSTGRADUATE
SCHOOL, IN PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR THE AWARD OF THE DEGREE OF
MASTERS OF BUSINESS ADMINISTRATION (M.B.A.)
OF THE AHMADU BELLO UNIVERSITY, ZARIA NIGERIA.
DEPARTMENT OF BUSINESS ADMINISTRATION
AHMADU BELLO UNIVERSITY,
ZARIA
DECEMBER 1998.
Keywords
INDIVIDUAL INVESTORS, LIABILITY TO ZAKAT, Comparative Analysis, Assets Valuation Models, Saudi Arabia, Sudan, Malaysia