Is it permissible to take from the zakah for a person whose money was lost in trade and who has debts?

Question:
The questioner says: In my country, I have wealth that exceeds the nisab. I gave it to a merchant to increase it for me, but then I needed this money. When I asked him for it, he told me he could not give me anything because taxes were imposed on him that took all the money. I have been demanding it from him for eight months, but to no avail. I have debts, and nothing is left with me. Is it permissible for me to take from the zakah? Please advise us, and may Allah reward you.

Answer:
As long as the situation is as you described, that your money came to be with this man and was lost from him, taken by taxes, and nothing remained with him, and he has become unable to pay, and you have debts and are in need, there is no harm in your taking from the zakah. This is because you have become poor, your money was lost, and you have debts. You are among those entitled to the zakah, so you may take from it.