Eveena

 Essay upon Eveena

Malaysian Accounting Review, Vol. 15 No . two, 13-25, 2011

TECHNICAL COMPARABILITY BETWEEN BUSINESS ZAKAT AND TAX UPON BUSINESS CASH FLOW IN MALAYSIA Rohila Awang Mohd Zulkifli Mokhtar Teachers of Administration and Economics Universiti Malaysia Terengganu Fuzy The focus of this paper is usually to demonstrate the technical evaluation between business zakat and taxation. This paper aims to enhance the knowledge on the part of zakat assessment plus the management of zakat as compared to the system of taxation in Malaysia. This is to minimise the misconceptions that exist in paying zakat as a duty and to improve the responsibilities of an excellent citizen in paying income taxes.

Introduction

There are five support beams in Islam which include syahadah, five times of prayers a day, zakat, as well as, and executing the hajj. Zakat stands as the third pillar of Islam. Essentially, there are two sorts of zakat, namely zakat on wealth (zakat mal) and zakat on personal (zakat fitr). Zakat upon self is definitely paid inside the month of Ramadan before the celebration of Eidul Fitr (1 Syawal) which is a pious day in Islam whereby all Muslims celebrate the day after one month of fasting. The duty is imposed to all Muslims who reside in the whole season of Hijra until the end of Ramadan of that particular year. On the other hand, the types of wealth on which zakat must be paid out are budgetary wealth, plants and animals. Zakat in wealth is payable by a payer at any time in the year following holding the wealth to get 12 months (haul). The zakatable wealth should certainly exceed the exemption limit (nisab). Thus, the riches is zakat at the rate of 2. 5%. Zakat in monetary riches refers to precious metal, silver and trade merchandise. Examples of zakat of monetary wealth will be zakat on savings, zakat on operate goods (business),

ISSN 1675-4077 В© 2011 Accounting Research Institute & Faculty of Accountancy and UPENA, Universiti Teknologi MARA, Malaysia.

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Malaysian Accounting Assessment, Vol. twelve No . a couple of, 13-25, 2011

business expense and personal home (http://ourworld.compuserve.com/homepages/ Abewley/zakat2. html) One of many parties required to pay out zakat is by those who are involved in business. As a result, all Muslim owned companies are required to disburse zakat in the event all the requirements for zakat have been fulfilled. At the same time, these Muslim business people also need to spend tax the liability for a particular year of assessment. The practice of organization zakat way of measuring in Malaysia involves a number of methods (Hamat, 2009). The most common methods are Growth Capital Approach and Working Capital Way. The examination of zakat in respect of both approaches is based on the Affirmation of Financial Placement of a company. On the other hand, the assessment of tax responsibility for firms is based on the Statement of Comprehensive Cash flow of these kinds of companies. The original objective of the paper is usually to demonstrate the assessment of business zakat as compared to the tax evaluation. In addition , the justification to get both checks will be even more clarified. Both business zakat and business tax assessment would involve adjustments whereby the initial sum will be subjected to addition or perhaps deduction. These kinds of adjustment is founded on zakat rules for zakat on organization and tax rules for business income.

Organization Zakat and Tax upon Business Cash flow in Malaysia

Zakat is among the five pillars of Islam and the reason for zakat is to regulate the wealth of Muslims for the welfare from the society. This pronouncement of compulsory act is strongly related to the five time prayers which is reflected inside the Quran. All those who have executed zakat are regarded to should have the help, blessings and appreciation from Kristus, the Al-Mighty God. Linguistically, zakat means growth, enhance and purification of one's prosperity. From the Syariah (Al-Quran, Hadith and Islamic jurisprudence), the term refers to the amount of money or kind which is obtained from the specific types of prosperity when it actually reaches a specific amount at a...

Sources: Malaysian Accounting Review, Vol. 10 Number 2, 13-25, 2011

Appendix B Get of Assertion of Comprehensive Income intended for the year finishing 31 Dec 2009:

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