Zakat and tax reporting: Disclosures practices of Shariah compliance companies

Noor, Rohaya Md; Rashid, Nik Mohd Norfadzilah Nik Mohd; Mastuki, Nor’azam

doi:10.1109/chuser.2011.6163862

Cited by 8 publications

(6 citation statements)

References 1 publication

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“…The information disclosed is very limited and some of the explanatory notes are absent. If the business has fulfilled their zakat obligation, then they should disclose the related zakat information on their annual report (Noor et al, 2011).…”

Section: Enhancing Governance Through Regulatory and Legal Frameworkmentioning

confidence: 99%

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Comparative Analysis of Business Zakat Computation of Islamic Financial Institutions in Malaysia and Saudi Arabia

Tajuddin

2022

Int. J. Is. Ec. Fi. Res.

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There has been an increasing need for principle-based financial reporting standards of Islamic Financial Institutions (IFIs) including business zakat reporting. In meeting the requirement of the shariah governance framework, business zakat computation is one of the aspects that must be disclosed and presented by IFIs on the face of their financial statements. The disclosure is vital in further promoting transparency and continuous development of IFIs within the tax and zakat environment. The objective of this study is to identify to what extent of business zakat computation among IFIs are in compliance with reporting requirements and rules in Malaysia and Saudi Arabia. In the light of the Malaysian regulatory and legal framework, a new policy document on Financial Reporting for Islamic Banking Institutions has been issued by Bank Negara Malaysia (BNM) in 2019. The Kingdom of Saudi Arabia (KSA) General Authority of Zakat and Tax (GAZT) has published the rules for computing zakat by IFIs also in 2019. A qualitative research approach is adopted in this study by analyzing the annual reports for the financial year ended 2020 of four public listed IBIs in Malaysia and four public listed IBIs in Saudi Arabia. Content analysis procedure was conducted to identify the zakat expenses recognition, measurement for assets and liabilities for zakat, presentation and disclosure of zakat on business. The outcomes of this study highlight the similarities, differences and current state of business zakat computation of the IBIs in Malaysia and Saudi Arabia. Since Saudi Arabia has released the new zakat by-law in 2019, having a priori knowledge of this function will be helpful in assisting Malaysian IFIs towards promoting best practices and highest efficiency. Besides that, business zakat reporting would be able to provide a comparable and reliable financial information of IFIs.

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Section: Enhancing Governance Through Regulatory and Legal Frameworkmentioning

confidence: 99%

“…The disclosure is presented in the annual report under the Report of Shariah committee of IFIs. Zakat reporting disclosures are encouraged among the IFIs as to give clear picture on how business zakat is assessed, what methods used and what is the zakat expense or zakat payable amounts within one accounting period (Noor et al, 2011).…”

Section: Introductionmentioning

confidence: 99%

Comparative Analysis of Business Zakat Computation of Islamic Financial Institutions in Malaysia and Saudi Arabia

Tajuddin

2022

Int. J. Is. Ec. Fi. Res.

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“…2018) in "cluster3", who successfully showed that the Islamic stock market had a negative return on interest rates. Noor et al (2011) was included in the first cluster, who successfully identified that transparency in muamalah (Islamic business law) contracts were necessary. Daud (2017), who was also positioned in the first and second clusters, showed that takaful rules as well as the regulations of Malaysia and Indonesia were governed by the Islamic Financial Services Act 2013 (IFSA 2013) and Law No 40 (UU40) respectively (Daud, 2017).…”

Section: Descriptive Analysis On Shariah Compliance Literaturementioning

confidence: 99%

Shariah Compliance in Islamic Economics: A Bibliometric Analysis

Sholihin

Ali

Wanto

2021

MJES

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This study aims to examine the literature related to shariah compliance in the Scopus database. Furthermore, classification and critical commentary were applied to find a new direction for developing studies on shariah compliance in Islamic economics. The bibliometric approach was used to analyse 233 articles, while a systematic literature review was used to classify issues from 82 articles on this paradigm. The results showed that the examined studies grew significantly and were influential in developing the shariah compliance paradigm. This was indicated by the author’s highest m-index of 0.666. However, this literature primarily concerns financial institutions and their relationship with the paradigm, followed by related literature in various industries, with extensive discussion on ethics and in the normative context. In this regard, shariah compliance issues can be classified into three topics, namely Islamic banks, non-bank financial institutions, and general firms. Shariah compliance was insufficiently used as an instrument to measure the product restructuring impact of an Islamic bank and a reflection of the compliance from the customer psychology perspective. In this context, it is necessary to transform the paradigm into “preventing exploitation” by introducing the customer exploitation index.

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“…The application will be designed mainly to ease the Muslims to perform one of their main obligations which is zakat. Technically, zakat is a fixed proportion collected from the surplus wealth and earnings of a Muslim to be distributed to prescribed beneficiaries [12]. Zakat is paid on the net balance after a Muslim has spent on basic necessities, family expenses, due credits, donations and taxes using specific formulas and calculations [13].…”

Section: The Case Study: Muslim Android Applicationmentioning

confidence: 99%

Requirements analysis of android application using activity theory: A case study

Ahmad

Akhbariee²,

Hafizuddeen³

2013

2013 International Conference of Information and Communication Technology (ICoICT)

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Over the past few years, we can see the enormous increase of the use of smart phones that are based on android platform. Due to that reason, the mobile application development based on android has boosted the developers' interest. Having countless android application on the market is not an assurance of having users' satisfaction. Some of them do not reach users' expectations due to lack of research on dealing with android-based application requirements. With the fast growing of smart phones and their applications, the needs for better application to be produced are needed. Currently there is no specific research on analyzing the requirements for android applications. This paper proposes a new strategy that uses an activity theory to analyze the requirements of android application. It is then discusses a case study of a Muslim android application and presents the results of its requirements analysis using activity theory. The result of this study shows activity theory as an alternative requirement analysis approach to mobile application development that is based on android operating system.

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Zakat and tax reporting: Disclosures practices of Shariah compliance companies

Cited by 8 publications

References 1 publication

Comparative Analysis of Business Zakat Computation of Islamic Financial Institutions in Malaysia and Saudi Arabia

Comparative Analysis of Business Zakat Computation of Islamic Financial Institutions in Malaysia and Saudi Arabia

Shariah Compliance in Islamic Economics: A Bibliometric Analysis

Requirements analysis of android application using activity theory: A case study

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