Question :
My brother and sister gave me a sum of money to invest. I used some of this money to operate a dental imaging device. How should I distribute the profit between my brother and sister, and is it permissible for me to deduct (20%) of their profits for savings?
The Answer :
Praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions. It is permissible to deduct a portion of the capital owners' profits - provided they agree - to protect the capital. This is because it is established in Sharia that there is no profit unless the capital is safe. In this regard, Al-Imam Ibn Qudamah, may Allah have mercy on him, said: "Whenever there is a loss and a profit in the capital, the loss is compensated from the profit, whether the loss and profit occur in one instance, or the loss in one transaction and the profit in another, or one of them in one journey and the other in another. This is because the meaning of profit is what exceeds the capital, and what does not exceed it is not profit, and we do not know of any disagreement on this matter." [Al-Mughni by Ibn Qudamah/Vol. 5/P.41].
Regarding the Mudarib (you) using a portion of the capital belonging to its owners (your brother and sister); if there was no prior agreement between you on this matter, then the default is that their share in the imaging device is calculated according to their respective shares in the capital provided to you. This is because the capital provided to you is a partnership between the capital owners, so the portion invested in the device is according to their shares in the total capital.
In conclusion, it is permissible to deduct a portion of the capital owners' profits, provided they agree to it. As for the profit distributed between them, it should be according to their respective shares in the capital, due to the absence of a prior agreement between them on the method of profit distribution. And Allah The Almighty Knows Best.
