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|b This paper discusses the zakat of debt and the impermissibility to use debt to pay zakat. \ -\ Zakatable properties include currencies like gold, silver and paper currencies, be they kept in cash, in current accounts, in deposits with others or debts due from others. \ -\ If these currencies are kept by the owner in cash and they reach a zakatable amount or more, zakat should be paid for them if the specified period lapses. \ -\ If these currencies are debts, they are either deferred or current ones. If these debts are due from a financially capable and trustworthy per¬son, zakat should be paid for them in general, be they deferred or current. If they are deferred, they are often debts for profit estimated through the agreement of both parties for the whole period of deferral. This means that this deferred debt has grown with the profit during the deferral period. Therefore, it cannot be said that it is unjust to im¬pose zakat on a deferred debt. \ -\ However, if the deferred debt is a loan for no profit, the reward for lending it is due from Allah and is not equal to the profit acquired during the deferral period. \ -\ Sheikh Ibn Baaz issued a fatwa solely and collectively with the members of the Permanent Committee of Iftaa that the zakat of debt is due from the creditor if the debt is due from a finan¬cially capable and trustworthy debtor. \ -\ If the debt is deferred, it is the creditor’s choice to defer it. More often than not that the creditor has received a good profit for the term of defer¬ral. \ -\ However, if the debt is due from a financially capable but procrastinating debtor or an insolvent debtor or due from a person whose property is in the hands of a thief, a usurper or denier or due from a person who has no stable property, in this case no zakat is due on the debt. \ -\ No zakat may be paid from the debt accord¬ing to the majority of scholars. The debt is de¬ducted from money owned by person who is re-quired to pay the zakat whether the debt is cur¬rent or deferred. This opinion is dictated by jus¬tice and fairness.
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