What is the ruling on a man giving money to another man to trade with, with the profit being shared between them, and appointing him to pay the zakah when the lunar year has passed? And what is the ruling if the owner of the money doubts whether the appointed person paid the zakah?
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The questioner : I have a sum of money that I gave to one of the brothers to work with in trade, and we agreed that the profit would be shared between us. What is the ruling on that? Is it lawful or forbidden? I also instructed this brother, to whom I gave the sum, to pay the zakah on this money for me every time the lunar year passes, and he committed to doing so for me. However, two years have passed and I have heard nothing from him. Should I pay it or not? What is the ruling for me if he did not pay it? Is it obligatory for me to pay it or not?
The Shaykh : This question contains two issues. The first issue is: Is this transaction valid, where you give a person money to trade with, and the profit obtained is shared between you two? The answer to that is: This is a valid transaction, and it is permissible by scholarly consensus. It is called a profit-sharing partnership, due to the benefit it holds for both parties. The worker obtains a benefit through his share of the profit, and the owner of the money obtains a benefit through his share of the profit. The owner of the money provides the capital, and the other provides the work. So the owner of the money obtains this profit with his money, along with his comfort and lack of effort, while the worker obtains his share of the profit with his effort, but without capital to invest in this transaction. The important point is that this transaction is permissible, and there is no blame in it.
As for the second issue contained in this question, it is that you appointed him to pay your zakah every year. This appointment is also valid, for appointing someone to pay zakah is permissible, and appointing someone to slaughter the sacrificial animal of the pilgrimage is permissible, and appointing someone to slaughter the 'Id sacrifice is likewise permissible. If you have doubted whether he paid the zakah in the last two years, ask him. If he has paid the zakah, then he has paid it by your appointment of him, and his payment is sufficient. If he has not paid it, then you pay it.
The Shaykh : This question contains two issues. The first issue is: Is this transaction valid, where you give a person money to trade with, and the profit obtained is shared between you two? The answer to that is: This is a valid transaction, and it is permissible by scholarly consensus. It is called a profit-sharing partnership, due to the benefit it holds for both parties. The worker obtains a benefit through his share of the profit, and the owner of the money obtains a benefit through his share of the profit. The owner of the money provides the capital, and the other provides the work. So the owner of the money obtains this profit with his money, along with his comfort and lack of effort, while the worker obtains his share of the profit with his effort, but without capital to invest in this transaction. The important point is that this transaction is permissible, and there is no blame in it.
As for the second issue contained in this question, it is that you appointed him to pay your zakah every year. This appointment is also valid, for appointing someone to pay zakah is permissible, and appointing someone to slaughter the sacrificial animal of the pilgrimage is permissible, and appointing someone to slaughter the 'Id sacrifice is likewise permissible. If you have doubted whether he paid the zakah in the last two years, ask him. If he has paid the zakah, then he has paid it by your appointment of him, and his payment is sufficient. If he has not paid it, then you pay it.