Zakat Accounting Review for Takaful Operators in Malaysia

Zakat Accounting Review for Takaful Operators in Malaysia

Mohamad Helmi Ahmad (SCR Strategic and Advisory Sdn Bhd, Malaysia)
Copyright: © 2021 |Pages: 9
DOI: 10.4018/978-1-7998-3452-6.ch011

Abstract

Many would say that most Quranic verses related to zakat were on the compulsory of zakat and its function as a pillar of Islam. Is it the only function of the said Shariah evidences? The author corrects the understanding of majority. That is because most reading materials pertaining to zakat were on the origin of zakat and its nature of business only. Not many found reading materials showing that the provision of zakat in Shariah evidences were also talking on zakat accounting and its matrices and calculations. However, research teams have found that inconsistent calculations and outputs came from various respondents, especially zakat authorities, zakat agents, and Shariah advisors (lectures stand as Shariah Advisory Committee in Takaful Operators). Hence, this research has proved that there is a need to come out with a reviewable version of Zakat Accounting for Takaful Operators due to different nature of business models used therein among the Takaful Operators.
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Zakat Accounting From The Quran And Hadis

Many would say that most of the Quranic verses related to zakat were on the compulsory of zakat and its function as a pillar of Islam. Is it the only function of the said Shariah evidence? It is correct to the understanding of the majority of authors and readers if I may. That is because most of the reading materials about zakat was on the origin of zakat and its nature of business only. To say, not many we found, reading materials showing that the provision of zakat in Shariah shreds of evidence was also talking on zakat accounting and its matrices and calculations.

However, the author found there are also some researchers choosing verse from surah Baqarah verse 282 in their attempt to show that it is the origin of zakat. For instances, zakat accounting was originated from verse 282, Surah Baqarah (Amela Troki, 2015). The author later quoted the following Quranic verses:

‘The origin of accounting from Quranic verses:

يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوٓاْ إِذَا تَدَايَنتُم بِدَيۡنٍ إِلَىٰٓ أَجَلٍ۬ مُّسَمًّ۬ى فَٱڪۡتُبُوهُ​ۚ وَلۡيَكۡتُب بَّيۡنَكُمۡ ڪَاتِبُۢ بِٱلۡعَدۡلِ​ۚ وَلَا يَأۡبَ كَاتِبٌ أَن يَكۡتُبَ ڪَمَا عَلَّمَهُ ٱللَّهُ​ۚ فَلۡيَڪۡتُبۡ وَلۡيُمۡلِلِ ٱلَّذِى عَلَيۡهِ ٱلۡحَقُّ وَلۡيَتَّقِ ٱللَّهَ رَبَّهُ ۥ وَلَا يَبۡخَسۡ مِنۡهُ شَيۡـًٔ۬ا​ۚ فَإِن كَانَ ٱلَّذِى عَلَيۡهِ ٱلۡحَقُّ سَفِيهًا أَوۡ ضَعِيفًا أَوۡ لَا يَسۡتَطِيعُ أَن يُمِلَّ هُوَ فَلۡيُمۡلِلۡ وَلِيُّهُ ۥ بِٱلۡعَدۡلِ​ۚ وَٱسۡتَشۡہِدُواْ شَہِيدَيۡنِ مِن رِّجَالِڪُمۡ​ۖ فَإِن لَّمۡ يَكُونَا رَجُلَيۡنِ فَرَجُلٌ۬ وَٱمۡرَأَتَانِ مِمَّن تَرۡضَوۡنَ مِنَ ٱلشُّہَدَآءِ أَن تَضِلَّ إِحۡدَٮٰهُمَا فَتُذَڪِّرَ إِحۡدَٮٰهُمَا ٱلۡأُخۡرَىٰ​ۚ وَلَا يَأۡبَ ٱلشُّہَدَآءُ إِذَا مَا دُعُواْ​ۚ وَلَا تَسۡـَٔمُوٓاْ أَن تَكۡتُبُوهُ صَغِيرًا أَوۡ ڪَبِيرًا إِلَىٰٓ أَجَلِهِۦ​ۚ ذَٲلِكُمۡ أَقۡسَطُ عِندَ ٱللَّهِ وَأَقۡوَمُ لِلشَّہَـٰدَةِ وَأَدۡنَىٰٓ أَلَّا تَرۡتَابُوٓاْ​ۖ إِلَّآ أَن تَكُونَ تِجَـٰرَةً حَاضِرَةً۬ تُدِيرُونَهَا بَيۡنَڪُمۡ فَلَيۡسَ عَلَيۡكُمۡ جُنَاحٌ أَلَّا تَكۡتُبُوهَا​ۗ وَأَشۡهِدُوٓاْ إِذَا تَبَايَعۡتُمۡ​ۚ وَلَا يُضَآرَّ كَاتِبٌ۬ وَلَا شَهِيدٌ۬​ۚ وَإِن تَفۡعَلُواْ فَإِنَّهُ ۥ فُسُوقُۢ بِڪُمۡ​ۗ وَٱتَّقُواْ ٱللَّهَ​ۖ وَيُعَلِّمُڪُمُ ٱللَّهُ​ۗ وَٱللَّهُ بِڪُلِّ شَىۡءٍ عَلِيمٌ۬ (٢٨٢)

Meaning:

O ye who believe! When ye contract a debt for a fixed term, record it in writing. Let a scribe record it in writing between you in (terms of) equity. No scribe should refuse to write as Allah hath taught him, so let him write, and let him who incurred the debt dictates, and let him observe his duty to Allah his Lord, diminish naught thereof. But if he who owed the debt is of low understanding, or weak, or unable himself to dictate, then let the guardian of his interests dictate in (terms of) equity. And call to witness, from among your men, two witnesses. And if two men be not (at hand) then a man and two women, of such as ye approve as witnesses, so that if one of the two of you (through forgetfulness) the one of them will remind. And the witnesses must not refuse when they are summoned. Be not averse to writing down (the contract) whether it be small or great, with (record of) the term thereof. That is more equitable in the sight of Allah and more for testimony, and the best way of avoiding doubt between you; save only in the case when it is actual merchandise which ye transfer among yourselves from hand to hand. In that case it is no sin for you if ye write it not. And have witnesses when ye sell one to another, and let no harm be done to scribe or witness. If ye do (harm to them) lo! it is a sin you. Observe your duty to Allah. Allah is teaching you. And Allah is knower of all things (Quran: 2:282)’.

We found there is a lack of assurance and careful attention to form such understanding and ground from a few authors and scholars. To add more problem, they wrote books or articles which also has been published in the indexed publication which made available and accessible to the people at large. We can also find the following quote from the same Quranic verse from surah Baqarah verse 282 as the researcher was saying:

Accounting in the concept of Islam is a collection of legal bases and a permanent standard, which is inferred from the sources of Islamic law and is used as a rule by an accountant in his work, both in accounting, analysis, measurement, presentation, and explanation. Thus, the basics of accounting and legal sources of zakat are the Qur'an, hadith, ijma, and qiyas. For example, in the Qur'an mentioned the importance of conducting recording to a transaction made by every Muslim. Allah says in the Qur'an surah al-Baqarah verse 282 (Jaelani, 2016).

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