Zakat on shares - Open Letter to the North American Fiqh Council, Shariyah Review Board and Sh. Joe Bradford
A new methodology to calculate zakat on long term shares has been growing in influence. It argues for a 70% discount on zakat obligations against long term shares. In the below letter, I question the precise illah by which minority corporate shareholding is treated as if it were a direct partnership in zakatable assets, despite the corporation’s separate legal personality and the shareholder’s lack of tasarruf over underlying assets.
