SAVAP International

Research for Peace & Development Search

Home

About Journal

Editorial Board

Advisory Review Board

For Authors Editorial Board, Academic Research International Policy of Journal

Chief Editor: Professor Dr. Muhammad Aslam Adeeb, Current Issue Professor (R) Hafiz Habib Ahmed, Pro-Rector, NCBA&E, Bhawalpur, PAKISTAN. SAVAP International, PAKISTAN. Archives Professor Dr. Chris Atkin, Professor Dr. Ugur DEMIRAY, Director of Graduate Studies and Research, Faculty of Communication Sciences, Faculty of Education, Liverpool Hope Next Issue Anadolu University, Eskisehir, TURKEY. University, Liverpool, UK. Contact Professor Dr. Hong Lin, Professor Dr. Ken Kawan Soetato, Department of Computer and Waseda University, Tokyo, JAPAN. Mathematical Sciences, University of Houston-Downtown, Houston, Texas, Professor Dr.Tahir Abbas, Abstracting/Indexing by: USA. Centre of Excellence in Solid State Physics, University of the Punjab, Lahore, PAKISTAN. Professor Dr. T. F. "Tim" McLaughlin, Department of Special Education, Professor Dr. Rosnani Hashim, Gonzaga University, Spokane, International Islamic University Kuala Washington, USA. Lumpur, MALAYSIA.

Professor Dr. Noraini Binti Idris, Professor Dr. Osamu Aoki, Dean, Faculty of Education, Department Hokkaido University, Sapporo, JAPAN. of Mathematics and Science Education, University of Malaya, Kuala Lumpur, Professor Dr. Pang I. Wah, MALAYSIA. The Hong Kong Instuitute of Education, HONG KONG. Professor Dr. Ghulam Shabir, Chairman, Department of Media Studies, Professor Dr. Sinan Olkun, The Islamia University of Bahawalpur, Faculty of Educational Sciences, Ankra PAKISTAN. University, TURKEY.

Professor. Dr Azman Bin Che Mat, Professor Dr. Kyung-Sung Kim, Academy of Language Study, Universiti Seoul National University of Education, Teknologi Mara, Terengganu Darul Iman, SOUTH KOREA. MALAYSIA. Professor T.D.T.L. Dhanapala, Professor Dr. José António Filipe, The Open University of SRI LANKA. Institution: Instituto Universitário de Dr. Lutfi Oksuz, Lisboa (ISCTE-IUL), Lisboa, PORTUGAL. Director, Turkish Standards Institution, Professor Dr. Dimitrios Nikolaou Konya, TURKEY. Koumparoulis, Department of Economics Dr. B.K. Ravi, and Management Universidad Azteca, Chairman, Department of Communication, MEXICO. Bangalore University, INDIA. Professor Dr. Syed Asif Ali Dr. Yousef Mahmoud Yousef Hameed, Chairman, Department of Computer Associate Professor, Middle East University, Science, Sindh Madressatul Islam Amman, JORDAN. University Karachi, PAKISTAN. Dr. Naoko Suzuki, Professor Dr. Ata ATUN, Associate Professor, Center for University Near East University & SAMTAY Extension, University of Tokushima, JAPAN. Foundation Nicosia, NORTH CYPRUS. Dr. Fariba Tadayon, Professor. Dr. Badar Alam Iqbal Associate Professor, Department of Former Fulbright Visiting Professor, Chemistry, Islamic Azad University – North Claflin University, South Carolina, USA. Tehran Branch, IRAN. Dr. Abdullatif I. AL-Hussein, Dr. Alireza Jalilifar Associate Professor, Department Shariah, Associate Professor of Applied Linguistics, AL-Imam Mohamed Ibn Saud Islamic Dept. of English Language and Literature, University, Al-Hfuf, SAUDI ARABIA. Shahid Chamran University of Ahvaz, IRAN. Dr.Huda Aldulaijan, Associate Professor in Alqura'an Science& Dr. Arab Naz, Altafseer, King Faisal University, SAUDI Chairman, Department of Sociology, ARABIA. University of Malakand, PAKISTAN.

Dr. T. Tammy Orunaboka, Dr. Muhammad Saeed, Associate Professor, Dept.of Human Associate Professor, Institute of Education & Kinetics & Health Education University of Research, University of the Punjab, Lahore, Port Harcourt, Uniport,Rivers State, PAKISTAN. NIGERIA. Dr. Jalil Khavand Kar, Dr. Sorinel CĂPUŞNEANU, Director, Zanjan Science & Technology Park- Associate Professor, Faculty of Finance IASBS, Zanjan, IRAN. and Accounting Artifex University Bucharest, ROMANIA. Dr. Md. Haider Ali Biswas, Associate Professor Mathematics, Khulna Dr. Ramel D. Tomaquin, University, Khulna, BANGLADESH, & Dean, CAS Surigao Del Sur State Electrical and Computer Engineering University, Tandag City Surigao Del Sur, Department, University of Porto, PORTUGAL. PHILIPPINES. Dr. Amic G. Ho, Dr. Muhammad Ashraf Malik, Department of Design, Technological and Impact Factor: Chairman, SAVAP International, Bright Higher Education Institute of HONG KONG. Home, PAKISTAN. Latest News

1/08/2017

ARInt Call for Papers

Last date to submit papers for ARInt. September 2017 issue: 10/08/2017

more

1/08/2017

September 2017 issue will be online on September 15, 2017

more

1/08/2017

ERInt Call for Papers

Last date to submit papers for ERInt. November 2017 issue: 10/10/2017

more

1/08/2017

ERInt. August 2017 issue will be online on August 15, 2017

more

1/08/2017

Invitation for Applications

Last date to apply for post of Member Editorial Board/Reviewer/Assistant Editor: 31/10/2017

more Visitor Number

Russian feder 12

Bangladesh 1

China 1

India 3

Indonesia 3

Malaysia 1

Pakistan 2

[email protected] [email protected]

Copyright © 2011-2015 Academic Research International, SAVAP International. All right reserved. SAVAP International

Research for Peace & Development Search

Home

About Journal

Editorial Board

Advisory Review Board

For Authors Academic Research International ISSN: 2223-9553 Policy of Journal

Academic Research International Current Issue ISSN-L:2223-9553 Online Archives ISSN:2223-9944 Print

Next Issue Issue: Vol.7, Number 1,

Contact January 2016 Articles Accepted: 31

Pages:324 Abstracting/Indexing by:

Part-I: NATURAL AND APPLIED SCIENCES

1. COMPARATIVE EVALUATION OF ARTIFICIAL LIFT METHODS ON A NIGER DELTA FIELD

Okologume Chinedu Wilfred, Ofesi Samuel F. Department of Petroleum and Natural Gas Engineering, Federal University of Petroleum Resources, Effurun, Delta State, NIGERIA.

[Abstract] [Full Paper] Pages 1-16

2. STUDY EFFECT OF DIFFERENT SOLVENT POLARITY ON THE ABSORPTION AND THE FLUORESCENCE SPECTRUM OF PHENOLPHTHALEIN LASER DYE

Dr . Lazem Hassan Aboud, Sara Jawad Shoja Laser Physics Department, College of Science for Women, University of Babylon, IRAQ.

[Abstract] [Full Paper] Pages 17-21

3. OPTIMIZATION OF CHEMICAL TREATMENTS OF COMBRETUM DOLICHOPETALUM FIBER FOR SUSTAINABLE APPLICATIONS

Azeez T.O, Walter P. E, Onukwuli O. D and Menkiti M. C. Biomedical Technology Department, Federal University of Technology, Owerri, Imo State, & Chemical Engineering Department, Nnamdi Azikiwe University, Awka, Anambra State, NIGERIA.

[Abstract] [Full Paper] Pages 22-29

4. AALTO AND THE MODERN(IST) MANNIERA: A CRITICAL READING OF THE MODERNISM AND AALTO AS A BAROQUE MACHINE

Assoc.Prof.Dr. Emine Görgül Department of Interior Architecture, School of Architecture, Istanbul Technical University, TURKEY.

[Abstract] [Full Paper] Pages 30-39 5. A SCALE STUDY OF DETERMINANTS ABOUT FEMALE PARTICIPANTS TO THE LABOR LIFE

Nuray Gökçek Karaca, Erol Karaca Faculty of Health Sciences, Anadolu University, TURKEY.

[Abstract] [Full Paper] Pages 40-50

6. GROSS ANATOMICAL STUDIES ON TESTIS AND EPIDIDYMIS AT PRE-PUBERTAL AND PUBERTAL STAGES OF TEDDY GOAT

Shujat Ali Khan, Illahi Bux Kalhoro, Jameel Ahmed Gandahi, Ahmed Nawaz Tunio, Waseem Ali Vistro, Mashood Ahmed, Khalid Hussain Memon, Mehmood ul Hasan and Syed Khurram Fareed Faculty of Animal Husbandry and Veterinary Sciences, Sindh Agriculture University Tandojam; Baqai College of Veterinary Sciences, Karachi; Department of Microbiology, University of Karachi, Karachi, PAKISTAN.

[Abstract] [Full Paper] Pages 51-57

Impact Factor: 7. STUDIES ON THE STOCKING DENSITY OF HORMONE TREATED TILAPIA (OREOCHROMIS NILOTICUS) FRY Latest News Mst. Sharmin Aktar Maghna, Md. Jahangir Alam, Seikh Razibul Islam, Please Click for Latest News Anowara Khatun, Mst. Niloy Jaman Department of Aquaculture, Bangladesh Agricultural University; Department of Visitor Number Fisheries Management, Patuakhali Science and Technology University; Department of Fisheries Technology, Bangladesh Agricultural University; Department of Poultry Science, Bangladesh Agricultural University; Department of Fisheries Technology, Patuakhali Science and Technology University, BANGLADESH.

Bangladesh 1 [Abstract] [Full Paper] Pages 58-70

Vietnam 1

United states 1 Part-II: SOCIAL SCIENCES AND HUMANITIES

Russian feder 12 8. THE EFFECT OF LEARNING STRATEGY AND WAY OF THINKING TO LEARNING OUTCOMES OF SOCIAL SCIENCE Bangladesh 1 Agus Purwowidodo China 1 State Islamic Institute Tulungagung, INDONESIA. [Abstract] [Full Paper] Pages 71-84

9. SELF-ESTEEM AND SOCIOLOGICAL FACTORS AS CORRELATES OF ALCOHOL CONSUMPTION AMONG UNIVERSITY UNDERGRADUATES

Ekeke Macdonald Ibubeleye, Dr. Orluwene Goodness W., Isukwem Gideon Chidozie Department of Educational Psychology, University of Port Harcourt Rivers State, NIGERIA.

[Abstract] [Full Paper] Pages 85-92 [email protected] 10. PSYCHOMETRIC PROPERTIES OF THE TURKISH VERSION OF THE SIBLING DYADIC TRUST SCALE [email protected] Sühendan Er, Müge Çelik Örücü Primary Education Department, & Guidance and Psychological Counseling Department, Faculty of Education, TED University, Ankara, TURKEY.

[Abstract] [Full Paper] Pages 93-99

11. STUDENT ACADEMIC MOTIVATION OF SECONDARY SCHOOLS OF KHAIRPUR MIRS

Abdul Karim Suhag, Raja Sohail Ahmed Larik, Altaf Ahmed Tagar, Shafique Rahman Solangi, Department of Education, Sindh Madressatul Islam University Karachi, & Shah Abdul Latif University Khairpur Mirs, PAKISTAN.

[Abstract] [Full Paper] Pages 100-109

12. UNDERSTANDING AND APPLICATION OF BLOOM TAXONOMY BY SENIOR SECONDARY SCHOOL TEACHERS IN BOTSWANA

Ernest Benny Fetogang Botswana College of Distance and Open Learning, Gaborone, BOTSWANA.

[Abstract] [Full Paper] Pages 110-122

13. ADAPTATION OF THE SENTIMENTS, ATTITUDES, AND CONCERNS ABOUT INCLUSIVE EDUCATION REVISED (SACIE-R) SCALE ON A TURKISH POPULATION Arzu Kis Education Department, Inonu University, Malatya, TURKEY.

[Abstract] [Full Paper] Pages 123-134

14. ACEHNESE SOCIAL INTERACTION PROCESS IN COFFEE SHOPS

Cut Khairani The Faculty of Social and Political Sciences, Almuslim University Bireuen, Aceh, INDONESIA.

[Abstract] [Full Paper] Pages 135-143

15. CLOUD COMPUTING IN HIGHER INSTITUTIONS IN NIGERIA: IMPLICATIONS FOR EDUCATIONAL EVALUATION

Dorothy C. Inko-Tariah Department of Educational Psychology, Guidance and Counselling, Ignatius Ajuru University of Education, Rumuolumeni, Port Harcourt, Rivers State, NIGERIA.

[Abstract] [Full Paper] Pages 144-150

16. THE GOVERNMENT LEGAL POLICY IN THE ERA OF REFORMATION IN COMBATING CORRUPTION IN INDONESIA

Pius Bere The Faculty of Law, Nusa Cendana University, Kupang, INDONESIA.

[Abstract] [Full Paper] Pages 151-158

17. ARRANGEMENTS VILLAGE POST FINANCE LAW OF THE REPUBLIC OF INDONESIA NUMBER 6 OF 2014 ON THE VILLAGE

Oleh; Heri Soesanto Sudarsono, Moh. Ridwan, Bambang Winarno Brawijaya University, Malang, INDONESIA.

[Abstract] [Full Paper] Pages 159-167

18. RESEARCH OF INTERNET FINANCE SUPPORT FOR “MASS ENTREPRENEURSHIP AND INNOVATION”

Yuzhong Sun, Chuncheng Liu College of Economics and Management, China Agricultural University, CHINA.

[Abstract] [Full Paper] Pages 168-174

19. INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) CHALLENGES ENCOUNTERED IN TEACHING BUSINESS EDUCATION IN RIVERS STATE TERTIARY INSTITUTIONS

Wokocha, Kelechi Da-kaladokubo, Wolugbom, Kioba Rosemary, Appah, Courage Nkem, Olorunfummi, Elizabeth Department of Business Education, Rivers State University of Science and Technology, Port Harcourt, NIGERIA.

[Abstract] [Full Paper] Pages 175-182

20. THE NEWSPAPER TIMELINE: A STUDY OF THE NEWSPAPERS PAST & ITS PRESENT

Vasundara Priya M., Dr. B K Ravi Senior Research Fellow, UGC, & Professor, Department of Communication, Bangalore University, Bangalore, INDIA.

[Abstract] [Full Paper] Pages 183-193

21. DEVELOPING A MODEL OF AN IDEAL EARLY CHILDHOOD EDUCATION TEACHER

Dr. M. Hameed-ur-Rehman, Nuzhat Naz Hamdard Institute of Education and Social Sciences, Hamdard University, Karachi, PAKISTAN.

[Abstract] [Full Paper] Pages 194-206

22. ECONOMIC EMPOWERMENT "PEASANTS" BEEF CATTLE THROUGH THE INTENSIVE SCALE HOUSE DISTRICT TRENGGALEK

Dr. Ec. Tri Lestari, and Dr. Budi Rianto Hang Tuah University Surabaya, East Java, INDONESIA.

[Abstract] [Full Paper] Pages 207-213

23. THE TAXATION IN ISLAMIC LAW PERSPECTIVE Mokhamad Khoirul Huda, Kamarudin, Ninis Nugraheni Faculty of Law, Hang Tuah University, Surabaya, INDONESIA.

[Abstract] [Full Paper] Pages 214-221

24. DIGITAL REFERENCE SERVICES (DRS) AMONG THE PUBLIC & PRIVATE SECTOR UNIVERSITIES LIBRARIES IN KARACHI: A COMPARATIVE STUDY

Muhammad Yousuf Ali, Dr. Kamal Haider Hamdrad University Karachi, & Federal Urdu University Science Arts & Technology, Karachi, PAKISTAN.

[Abstract] [Full Paper] Pages 222-230

25. PREVALENCE AND COMPARISON OF PSYCHOLOGICAL PROBLEMS AMONG HOSTELITES AND DAY SCHOLARS OF UNIVERSITY

Amina Munir, Sidra Khalid, Dr. Riffat Sadiq Department of Psychology, University of Gujrat, & Department of Applied Psychology, Govt. College Women University, Faisalabad, PAKISTAN.

[Abstract] [Full Paper] Pages 231-240

26. DEMOCRACY AND AUTONOMY TRANSFORMATION IN THE GOVERNANCE OF MENGWI VILLAGE, PROVINCE BALI INDONESIA IN THE TRANSITION ERA

I Wayan Gede Suacana, Diah Rukmawati, I Nyoman Wiratmaja Lecture, Faculty of Social and Political Sciences, Warmadewa University, Denpasar- Bali, Head of Government Department, Faculty of Social and Political Sciences, Warmadewa University, Denpasar-Bali, Doctoral Candidate Department of Cultural Studies, Udayana University, Denpasar-Bali, INDONESIA.

[Abstract] [Full Paper] Pages 241-258

27. EVALUATION OF SPATIAL GROWTH DYNAMICS IN THE PERI-URBAN RESIDENTIAL NEIGHBOURHOODS IN MINNA, NIGERIA

Popoola, N. I., Jinadu, A.M., Sanusi, Y. A.,Adeleye, B.M., and Odumosu, J. O. Department of Estate Management and Valuation, Department of Urban and Regional Planning, Department of Survey and Geo-informatics. F. U. T. Minna, NIGERIA.

[Abstract] [Full Paper] Pages 259-270

28. GREEN ACCOUNTING: BUSINESS STRATEGY TECHNIQUES: A COMPARATIVE STUDY OF JUST IN TIME AND ECONOMIC ORDER QUANTITY APPROACH

Mahsina University of Bhayangkara Surabaya, East Java, INDONESIA.

[Abstract] [Full Paper] Pages 271-280

29. DISPUTE SETTLEMENT BORDER REGIONAL FOR KEDIRI REGENCY WITH BLITAR REGENCY OF EAST JAVA

Suprianto, Sudarsono, Abd Rachmad Budiono, Moh. Ridwan Universitas Brawijaya Malang, INDONESIA.

[Abstract] [Full Paper] Pages 281-289

30. PROFILING DISASTERS IN KENYA AND THEIR CAUSES

Julius M. Huho, Janet N. Mashara and Peter K. Musyimi Department of Tourism and Hospitality Management, Department of Humanities, Karatina University, Nyeri, KENYA.

[Abstract] [Full Paper] Pages 290-305

31. COMMUNICATION TRAINING SKILL FOR IMPROVEMENT OF ORAL/AURAL COMMUNICATION AMONG LEARNERS WITH HEARING IMPAIRMENTS IN PRIMARY SCHOOLS FOR THE DEAF IN WESTERN REGION OF KENYA

Nyakado John Abuor, Peter Oracha, Aloys Odeck Department Of Special Needs Education And Rehabilitation, School Of Education, Maseno University, KENYA.

[Abstract] [Full Paper] Pages 306-315

[Next Issue] [Current Issue] [All Issues] [Instructions for Authors]

Copyright © 2011 Academic Research International, SAVAP International. All right reserved.

Academic Research International Vol. 7(1) January 2016 ______

THE TAXATION IN ISLAMIC LAW PERSPECTIVE

Mokhamad Khoirul Huda1, Kamarudin2, Ninis Nugraheni3 Faculty of Law, Hang Tuah University, Surabaya, INDONESIA [email protected], [email protected] , [email protected]

ABSTRACT

The national legal policy on taxation is cited in Article 23, the 1945 Constitution of the Republic of Indonesia. It provides that and other enforceable contribution for state purposes shall be regulated by act. collection is part of a state economic activity that constitutes the study matter of Islamic law. The Islamic law aims to guide humans in a right path. There are various Islamic jurists’ opinions on whether taxes the government collects are allowed or not. The taxes can be collected if the state is under certain conditions and with certain requirements by considering principles of justice, not burdening the people and spreading evenly. The taxes can be collected by the state to fund state expenditure. There is a binding goal why the tax collection is allowed, that is to fund the expenditure for which Muslims is responsible and to fill the empty baitul mal (state treasury). The taxes and are an integral part in fulfilling both state and religious obligations. The Tax Director General Regulation Number PER-6/PJ/2011 regulates implementation of the payment of zakat or compulsory religious donations that can be deducted from gross income when they are paid to one of the bodies or institutions the government has approved. Keywords: taxes, zakat, state, the 1945 Constitution, Baitul Mal

INTRODUCTION Indonesia is based on rule of law (rechtsstaat), not based on rule by law (maachtsstaat). It is asserted in some provisions such as: first, the explanation of the 1945 Constitution on the governance system; second, the assertion of rejecting absolute power; third, the substantial rule of law in Indonesia; fourth, the rule of law is compatible with democracy; fifth, the power of head of the state is not infinite, but limited; and sixth the 1945 Constitution regulates human rights. In welfare state, the tax collection should be based on act (Rochmat Soemitro and Kania Dewi Sugiharti, 2004: 16). The national legal policy on taxation is mentioned in the 1945 Constitution of the Republic of Indonesia Chapter VII and Article 23A, states that "taxes and other enforceable contribution for state purposes shall be regulated by act" (Muhammad Saidi Djafar, 2007 : 5). Similarly, the developed countries use the slogan: "no taxation without representation", that no taxation without the approval of the House of Representatives or "taxation without representation is robbery". It means that taxation without the approval of the House of Representatives is thievery. The taxes have vital and strategic function in executing the governance, regulating the economic field, spreading the income evenly and increasing the development so that every state needs the tax collection can be well done. Moreover, the state income from tax sector becomes one of the key indicators of the government’s success. Whatever the tax system is implemented, the government’s success will be measured by amount of tax collection to the state treasury (Mokhamad Khoirul Huda, 2005: 70). The taxation concerns on citizens’ obligations to the state as public institution that is formed and given an authority to manage state or public interests. The tax collection should be

C opyright © 20 16 SAVAP International ISSN: 2223-9944, e ISSN: 2223-9553 www.savap.org.pk 214 www.journals.savap.org.pk Academic Research International Vol. 7(1) January 2016 ______appoved by people through a legislation or an act the House of Representatives approve. Any tax collection which is not based on legislation is null; the people are not obliged to obey it. However, the taxation the law stipulates makes the government has the coercive right to collect taxes through authorized state apparatus. A total income in the 2015 State Budget is planned to reach Rp.1.793.588,9 billion, upper 7.8% than the target in the 2014 State Budget. A of such a total income is projected to reach Rp.1.379.991,6 billion, upper 10, 0 percent than the target of the 2014 Revised State Budget. The tax revenue reaches 77% of total state income. On the other hand, the amount of the 2015 State Budget is planned to reach Rp. 2.039.483,6 billion, upper 8.7% than the ceiling of the 2014 Revised State Budget. Thus, the 2015 State Budget is deficit of Rp.245.894,7 billion or 2.21 percent of the Gross Domestic Product. (Memorandum of Finance and the 2015 State Budget: 12). Therefore, the taxpayer participation, awareness and compliance to contribute in developing the country through paying the taxes should be also increased. Without the increased taxpayer compliance, there will be no cheap public facilities, no eradication of poverty, and no optimal implementation of the state functions. To reach the tax revenue target, the government has made various improvements of the national tax system. To secure the 2015 tax revenue targets, the government has decided to continue efforts of the . According to Statistics in 2015, a population of Indonesia is 252,168.4 people, (Statistical Agency, 2015: 69), whereas in year 2010 the national population was 237,556,363 people that grew an average 1.4% every year. Meanwhile, the distribution of Indonesian population in 2010, based on their religion is that approximately 87.18% of them are Moslem; 6.96% are Protestant; 2.91% are Catholic; 1.69%, are Hindu; and 0.72% are Buddhist. Looking at the amount of the Indonesian population in 2015, it is a potential for both tax revenue quantity and quality. The most taxpayers are actually Moslems, since they are 87% of total Indonesian population i.e. 252,168.4 people. Furthermore, the Indonesian Moslems are the most population in the world i.e. 202 million; then followed by Pakistan where the Moslems reach 174 million. The tax collection is a part of the state economic activity that also becomes a study matter of Islamic law as other fields of science and knowledge. The Islamic law aims to guide humans in a right path. The economic activity in Islam is a life demand that has divine dimension, as defined in Al-A'rah: 10: “And We have certainly established you upon the earth and made for you therein ways of livelihood. Little are you grateful”. However, until now there is no legal certainty in Islamic law (Suhrawardi K. Lubis, 2004: 1) whether the tax collection is included as halal (lawful) or haram (unlawful). Moreover, the Indonesian Ulama Council has so far not stipulated a fatwa on the taxation (Jawa Pos, 2012: 3). If the tax collection is decided as haram, it will impact Indonesian people and state activity, as asserted in Surah Al-Baqarah (2) 168: “O mankind, eat from whatever is on earth [that is] lawful and good and do not follow the footsteps of Satan. Indeed, he is to you a clear enemy". Based on the background above, it is formulated to analyze the following issue: how the tax liability is in Islamic law perspective; and how the relationship between zakat liability and tax liability is according to positive law of Indonesia.

TAX LIABILITY IN ISLAMIC LAW The state income (Mawarid ad-Daulah) in the economic system of Islam according to Imam Malik, Imam Shafi'i, Abu Ubaid, Imam Al Mawardi, Ibn Taymiyyah and Syyid Sabiq consist of three main classification, namely ghanimah (spoils of war), fai' (property) and

C opyright © 20 16 SAVAP International ISSN: 2223-9944, e ISSN: 2223-9553 www.savap.org.pk 215 www.journals.savap.org.pk Academic Research International Vol. 7(1) January 2016 ______shadaqah/zakat (charity). The word ghanimah is cited in the Qur'an seven times; fai' is mentioned three times; and shadaqah is cited thirty four times (Gusfahmi, 2009: 8). The government of Caliph Umar ibn Khattab (634-644 AD), Umar ibn Abdul Aziz (717-720 AD) and the Abbasid under Caliph Harun al-Rashid (786-803 AD) used Islamic economic system so that the country experienced a golden achievement, including surplus finance for people. Baitul mal (the treasury) during the Islamic caliphate was able to fund arrangement and maintenance of useful affairs for people, so there was directly or indirectly no tax liability for the people. Islam has determined that financing for various purposes is underwritten by baitul mal. However, if baitul mal has no or less fund, Islam obligates entire Moslems to fund it. Allah has obliged to the state and the people to eliminate the danger that can be befall to the people as Hadis Rasullullah Muhammad from Malik and Ahmad Ibn Abbas says: "It should not harm others and yourself." Along with the changing times and conditions, another collection appeared apart from zakat, i.e. taxation that is in Arabic terms called al-usyr, al-maks or dharibah. Currently, the taxation is an obligation for citizens in a country, because the government’s funds are insufficient to finance various "expenditures either routine expenditure or development expenditure", so that if they are not funded, it will arise disadvantages. Meanwhile, preventing disadvantages is an obligation, so the state must also provide what people require to live. Imam Muslim narrates the Hadis: "Imam or the caliph is a protector and regulator towards people’s affairs; and he will be held accountability for the people." Thus, the taxes can be collected if the state enters into certain conditions and certain requirements by considering principles of justice, not burdening the people and spreading evenly. In Islamic law there are three taxation systems, such as: first, known as individual tax that must be paid by kafir zimmi, i.e. non-Moslems who live in an Islamic state and obey the government regulations in protecting life, safety, liberty and other human rights; second, kharaj i.e. a land tax that is applied towards a land the Moslems obtain through the war and then it is returned to and worked by the owner; and third, 'usyur i.e. a tax or including and import (Widi Widodo: 2012). The taxes can be collected by the state to fund the state expenditures. Thus, there is a binding goal why the tax collection is allowed, that is to fund the expenditure for which Muslims is responsible and to fill the empty baitul mal (the state treasury). In detail there are four main causes that the taxation (dharibah) emerges in Islam. First, the ghanimah and fay'i diminish and even surcease at all. In Rasulullah Muhammad and friends era, the state budget sourced from ghanimah and fay'i also diminished, moreover it is recently off. It is a fact that various public interests are financed by both sources, ghanimah and fay’. Second, the target to distribute zakat is limited. Although the acceptance of zakat increases because of the growing number of Moslems, the target to accept zakat is limited. Allah in the Qur'an. (9): 60 says that the target to have the right to receive zakat is indigent, poor, amil, mu'allaf, riqab, gharim fi sabilillah and ibn sabil. Third, the taxation becomes a shortcut to encourage economic growth. Moslem countries have many natural resources but have little funds, so they have to borrow funds to abroad and they must consequently pay the debt and its taxes. Fourth, the taxation is decided as a solution for the Caliph who must fill the people’s needs if the Baitul Mal is in lack financial condition (Gusfahmi, 2009: 9). To this type of the collection apart from zakat, the ulama (the Moslem scholars) have called as dharibah. It is derived from the word dharibah, dharaba, yadhribu, dharban that equivalently means a tax. The taxation is additionally burdened to the Moslems after the first

C opyright © 20 16 SAVAP International ISSN: 2223-9944, e ISSN: 2223-9553 www.savap.org.pk 216 www.journals.savap.org.pk Academic Research International Vol. 7(1) January 2016 ______burden, zakat or charity. Meanwhile, according to Inaya Gazy as mentioned in his book Al- Iqtishad al-Islami wa az-Zakah ad-Dharibah that is translated into Bahasa Indonesia by Zainudin Adnan, the tax means humiliation which is understood from the word jizyah (Surah At-Tawbah (9): 29). This humiliation is mainly burdened to kafir, and it is additionally burdened to Moslems as a part of righteous deeds and their jihad in the way of Allah because of specific condition. Therefore, the term dharibah is more appropriate to be translated as the additional burden the Moslems hold to meet their interests. In Islamic literature, the Moslem scholars variously define the taxation as follows: a. Imam al-Ghazali and Iman al-Juwaini define the taxation as what the rulers obligate to rich people i.e. collecting what can make state and people interests fulfilled when there is no fund in baitul mal (the treasury); b. To Yusuf Qardhawi, the taxation is an obligation that taxpayers have and give it to the state as prevailing provisions without getting refund from the state to fund public expenditures and to implement economic, social and political goals and other goals the state wants to achieve; c. To Gazy Inayah, the taxation is an obligation to pay in cash and bindingly what the government or authorized official has stipulated without any refunding for the taxpayers. The government stipulation is accorded with the taxpayers’ ability and allocated to meet the public food needs and government’s financial demands; d. according to Abdul Karim, the taxation is a treasure Allah obligates to the Moslems to finance several needs and expenditures when the treasury has no fund or money. The taxation regulates a relationship among human beings (mu'amalah); it is therefore is part of Islamic law (Mohammad Daud Ali, 2007: 45). If Islamic law does not regulate the taxation, the government will collect it as a means to oppress the people (Gusfahmi, 2011: 15). Without any shari’a provisions, the government will collect taxes and allocate them as he/she wants; the taxes are therefore defined as a tribute or a property of the king. Only should the Islamic law decide all cases whether a particular tax can be collected or not. Those who do not judge and decide the cases in the Shari'a provisions (the provisions Allah has stipulated), they are unjust (Surah Al-Maidah [5]: 45). The nature of the taxation in Islamic law is: first, that the subject of the taxation (dharibah) is only Moslems, while non-Moslems are imposed jizyah; second, the taxpayers are only the rich people; third, the object of the taxation is only property (al-Amwal), not individual (an- nafs); fourth, it prevails in temporary period; fifth, the amount of the tax collection is limited according to the amount of required financing; and sixth, zakat should be able to deduce the taxes (), not just to deduce income (deductable cost) as recently applied in Indonesia (Gusfahmi, 2009: 11). There is different opinion among Islamic jurists and Islamic economists on what the taxation is allowed or not. The first opinion states that the taxation should not be obliged to the Moslems, because they have been obliged to pay zakat or charity. This opinion is based on shar’i arguments as follow: (a) Allah said in the Holly Qur’an: "O you who have believed, do not consume one another's wealth unjustly but only [in lawful] business by mutual consent...” (Surah An-Nisa’: 29); (b) Rasulullah Sallallaahu 'Alaihi Wasallam said: "Do not do despotically. A Moslem’s wealth is not actually halal unless it is suitable with the owner’s willingness (Hadis from.Iman Ahmad); (c) Hadis from Fathima bint Qais Radhiallahu 'Anha that she heard Rasulullah say: "There is no obligation towards the wealth but zakat"; (d) Hadis Buraidah Radhiyallah 'Anhu in the story of an adultery Ghamidiyah woman states that

C opyright © 20 16 SAVAP International ISSN: 2223-9944, e ISSN: 2223-9553 www.savap.org.pk 217 www.journals.savap.org.pk Academic Research International Vol. 7(1) January 2016 ______

Rasullullah said: "For the sake of the Divine who holds my soul, she has indeed repented. If a tax collector repented as her repentance, his sins whould undoubtedly be forgiven (Hadis from Muslim); (e) Ibn Umar Radiyallah 'Anhu was ever asked whether Umar Ibn Khatab Radiyallah 'Anhu ever collected the taxes from the Moslems. He replied: "No, I never knew it"; and (f) Sheikh Abdul Aziz bin Baz Rahimahullah in his book Huquq ar-Ra'yi wa ar- Ra'iyyah said: "The evil is like tax collection, we therefore expect that the government review the policy” (Muhammad Wasitho Abu Fawaz: 2011). The second opinion states that the taxation can be the Moslems’ when the state indeed requires the funds. The Islamic jurists, in this sense, argue that: first, the Prophet Muhammad said: "There is another obligation on your wealth apart from zakat." This argument is strengthened by a principle of fiqh which states that: "the smaller can be sacrificed to avoid the greater one"; and “everything that a duty or obligation can not be applied without it, is also obligatory." b. Ibn Khaldun in his book Muqqadimah quoted from Tahir Ibn Husain’s letter states: "Therefore, please spread the taxation fairly and equally to all people without treating everyone more important than anyone else because of his position in the community or of his wealth ..." c. Ibn Taimiyah cited in Majmuatul Fatawa the ban to avoid the taxation even though that is unfair based on the argument that not paying the taxes for the taxpayers will impact the greater burden for others." d. Izzuddin delivers a fatwa to King Shaykh al-Mushaffar in obligating the taxation to the people to prepare troops for combating Tatar, while he states: "If enemies enter into and attack Islamic state, the Moslems must resist the attacks, and they may collect from the people what can help them to do jihad against the enemies, but on the condition that there is no funds at all in baitul mal (the treasury), ...” Based on the second opinion, it concludes that there is no duty to pay on the Moslems’ properties and wealth but zakat or charity. However, if the force condition comes, an obligation to pay the taxes emerges. This allowed taxation is to implement the people’s welfare, because government funds are insufficient to fund the routine and development expenditures. Thus, this is the shar’i argument that the government uses to collect the taxes to the people by considering that the main source to fund development is recently derived from the taxes sector.

RELATIONSHIP BETWEEN TAXATION AND ZAKAT IN INDONESIAN LEGAL SYSTEM The taxation and zakat are two different terms in basic aspects to collect, but the same in natural aspects as an effort to take or collect the people’s wealth for social purposes. It is important to discuss the relationship between the taxation and zakat, because firstly, there is a compulsion and obligation to obtain the taxes and zakat (the charity) as well. If a Moslem is late to pay zakat because of his/her weak faith and Islam, the Islamic government can pay his/her zakat and even can fight those who are reluctant to pay zakat. Secondly, the taxes must be paid to public institutions (the state) or authorized institutions and zakat must be too. Basically, zakat must be submitted to the government (amil zakat). Thirdly, the taxpayers must receive compensation from the government, but neither does zakat payers. Fourth, the taxation in modern era has social, economic and political purposes; and zakat as well. Additionally, zakat also has added values for individual and public life (Siti Zulaikha, 2012: 6).

C opyright © 20 16 SAVAP International ISSN: 2223-9944, e ISSN: 2223-9553 www.savap.org.pk 218 www.journals.savap.org.pk Academic Research International Vol. 7(1) January 2016 ______

The taxation and zakat have differences. The first is about the recipient of both. Zakat is paid through the institution amil zakat and directly paid to the person who is entitled to receive zakat, while the taxes are directly paid to the tax office. The second is about the payment time. Zakat fitrah is paid only during Ramadhan; zakat mal is paid when the wealth has reached nisab and owned for a year, while the taxes are paid when it has reached a financial year. The third difference is about the object used as means of payment. The taxes are generally paid in cash, while zakat fitrah can be paid in cash or with staple food such as rice and wheat. The taxation and zakat are an integral activity to carry out the obligations of state and religious life for individual or corporate entity. It is mainly for the individual, because there is stiil no united opinion among Indonesian ulama for the corporate. However, many companies that have paid zakat based on consciousness of sharing. In principle, the taxation and zakat have the same goal, i.e. solving economic problems. Both has been regulated in order to be able to be well managed in an appropriate manner to achieve the purposes by depositing the payment to the official institution the government has approved. In addition, the collection of both is not obliged to all people, but it depends on the minimum threshold to be taxpayer and zakat payer. This threshold in the taxation is known as non , while in zakat this is called as nishab. Since this country was established, zakat has been neglected to be cited in the state constitution. As the most legitimate institutions to manage zakat, the government realizes that during the recent period the opportunity has been wasted. Absolutely, zakat is very potential to enlarge the state revenue, but it is legally in weak position to overcome the poverty in this country. According to Act Number 23 of 2011 on the Management of Zakat in exchange for Act Number 38 of 1999, National Agency for Amil Zakat (the taxes accepting agency) is an authorized institution to manage zakat in Indonesia. National Agency for Amil Zakat means as not only established at the central level, but also at the provinces and regencies or cities throughout Indonesia based on the decision of the Minister of Religious Affairs or the appointed official. Article 2, Act Number 23 of 2011 asserts the principle of managing zakat, such as "integrated". In the Government Regulation Number 60 of 2010 on Zakat or compulsorily Religious Donations that Can be deducted from Gross Income, the object of zakat covers:: (a) an income paid by an individual Taxpayer of Moslems and/or by a homeland corporate taxpayer the Moslem owns to amil zakat institution the government establishes or approves; or (b) a compulsorily religious donations paid by an individual taxpayer of non-Moslems and/or by a homeland corporate taxpayer, non-Moslems own which is recognized in Indonesia to religious institutions, the government establishes or approves. Tax Director General Regulation Number PER-6/PJ/2011 regulates the paying zakat or compulsorily religious donations that can be deducted from gross income. This Regulation has been prevailed since March 21, 2011. When this regulation is prevailed, the Tax Director General Decree Number KEP-163/PJ/2003 is revoked and declared invalid. Zakat that can be deducted from gross income will be taxed. This zakat covers: (1) zakat paid by individual taxpayers of Moslems and/or by a homeland corporate taxpayer the Moslem owns to amil zakat institution the government establishes or approves; (2) a compulsorily religious donations paid by an individual taxpayer of non-Moslems and/or by a homeland corporate taxpayer, non-Moslems own which is recognized in Indonesia to religious institutions, the government establishes or approves.

C opyright © 20 16 SAVAP International ISSN: 2223-9944, e ISSN: 2223-9553 www.savap.org.pk 219 www.journals.savap.org.pk Academic Research International Vol. 7(1) January 2016 ______

To be able to reduce the tax liability, the taxpayer must fulfill requirements by enclosing a payment invoice copy of the Annual Notice of in the Tax Year when zakat or compulsorily religious donations are reduced. The payment invoices via tax office or a bank or ATM must at least contain: (1) the full name and Taxpayer Identification Number of the payer; (2) total payments; (3) date of payment; (4) name of amil zakat agencies or religious institutions, the government establishes and approves; (5) officer signature of amil zakat agency or religious institutions, the government establishes and approves on the direct payment invoice; and (6) the bank officer has validated the via bank payment receipt. Furthermore, in order that the taxes can be deducted from the gross income, (a) the reduction of zakat or compulsorily religious donations should be reported on the Annual Notice of the Taxpayer’s Income Tax in the tax year when zakat or religious donations are paid; (b) In the Annual Notice of Income Tax, zakat or compulsorily religious donations should be reported to determine the net income. However, it is necessary to observe that there is a non deductible zakat or compulsorily religious donations from gross income when (1) the taxpayer does not pay to amil zakat agency or religious institutions, the government establishes or approves; (2) the payment invoice does not meet the requirement. The statement that zakat deducts the taxes is so important, because the zakat potential in Indonesia reaches 84.49 trillion every year. In this sense, a survey conducted by the Public Interest Research and Advocacy Center towards 1.837 of Moslem respondents in 11 major cities of Indonesia in 2000 including Jakarta, Bandung, Semarang, Surabaya, Medan, Padang, Denpasar, Manado, Makassar, Pontianak and Balikpapan shows that the level of public zakat is in high rate; 94% of them declare as muzaki (zakat payer) which every muzaki to paid averages Rp 124.200,00 every year, and thus every muzaki pays approximately Rp. 44.000,00 to Rp. 339.000,00 every year (www.baznas.or.id). The income taxation did not fully present a justice for many taxpayers, because the amount of is not based on the basic value of human needs. Determining the amount of taxable income based on the basic value of human needs is very useful to improve the people’s welfare. Therefore, the people who are exempts have the right to obtain a subsidy in order that their needs can be decently fulfilled. Moreover, the population who are exempts can pay the taxes and zakat. In the future it is necessary to implement a model of zakat and taxation that is in accordance with both the state law and the religious law. Synergic relationships between zakat and taxation should obtain special attention in the future. The efforts to integrate zakat and the taxation can be recently begun through the data exchange between the Taxpayer Identification Number (TIN) and the Zakat payer Identification Number (ZIN), integrated counseling of zakat and taxation, and opening a one-stop counter service between the Tax Office and Amil Zakat Agency.

CONCLUSION Based on the review of the issues above, it can be concluded that the different opinion emerges among Islamic jurists in addressing the tax liability according to Islamic law. The opinion nowadays adopted in the taxation is that a tax can be collected if the state is in certain conditions and with certain requirements by considering the principle of justice, not burdening the people and spreading evenly. It is important to discuss the relationship between taxation and zakat particularly on the provisions that paying zakat or compulsorily religious donations can be deducted from gross income of which the taxes must be paid to the state.

C opyright © 20 16 SAVAP International ISSN: 2223-9944, e ISSN: 2223-9553 www.savap.org.pk 220 www.journals.savap.org.pk Academic Research International Vol. 7(1) January 2016 ______

REFERENCES [1]. Alfitri (2005). The Law of Zakat Management and Non-Governmental Zakat Collectors in Indonesia The International Journal of Not-forProfit Law 8(2) (November 2005). [2]. Ali, M.D. (2007). Hukum Islam, Pengantar Ilmu Hukum dan Tata Hukum Islam di Indonesia. Jakarta: Raja Grafindo Persada. [3]. Djuanda, G.(2006). Pelaporan Zakat Pengurangan Pajak Penghasilan. Jakarta: Raja Grafindo Persada. [4]. Fawaz, M.W.A. (2011). Hukum Pajak dalam Fiqih Islam, Bagaimana Kaum Muslimin Minyikapinya?. Magazine: Pengusaha Muslim. Edisi 17 Volume 2/Juni 2011. [5]. Gusfahmi.(2011). Pajak Menurut Syariah. Jakarta : Raja Grafindo Persada. [6]. Gusfahmi. (2009). Rekontruksi Praktek Zakat dan Pajak Untuk Menanggulangi Kemiskinan. Jurnal Pemikiran dan Gagasan. Vol. II. [7]. Gemala, D., et.al. (2007). Hukum Perikatan Islam di Indonesia. Jakarta: Kecana. [8]. Huda, M.K. (2005). Penegakan Hukum Pidana terhadap Tindak Pidana di Bidang Perpajakan. Jurnal Legality. Volume 13 No. 1. hal. 70. Maret-Agustus. Malang. [9]. Kuat, I.(2011). Asuransi Syariah Tinjauan Asas-Asas Hukum Islam. Jogjakarta: Pustaka Pelajar. [10]. Mas’ud, M.R. (2005). Zakat & Kemiskinan Instrumen Pemberdayaan Ekonomi Umat. Jogjakarta: UII Press. [11]. Soemitro, R. & Dewi, K.S. (2004). Azas-Azas dan Dasar Perpajakan. Bandung: Refika Aditama. [12]. Suhrawardi.(2012). Hukum Ekonomi Islam.Jakarta: Sinar Grafika. [13]. The 1945 Constitution of the Republic of Indonesia. [14]. Widodo, W. (2012). Pajak dalam Perspektif Islam. www.kompasiana.com. 19 Maret 2012. [15]. Zulaikha, S. (2012). Zakat dan Pajak dalam Bingkai Kesejahteraan Sosial. Jurnal Istinbath. 11(1), Edisi Mei 2012.

C opyright © 20 16 SAVAP International ISSN: 2223-9944, e ISSN: 2223-9553 www.savap.org.pk 221 www.journals.savap.org.pk