The slightly altered words of Shakespeare "we know where we are, but we know not where we may be" may be self evident in many spheres of life. However the words are certainly very apt when one looks at the changes that have been made to the tax laws in various jurisdictions to facilitate Shari'ah compliant financing.
In this article we have a bird's eye look at how Shari'ah compliant financing in the UK, US, Germany, Luxembourg and Ireland have been/will be facilitated in the future and are attractive for Shari'ah compliant investors in making their real estate or private equity investments, in or through such jurisdictions.
Why worry about Tax?
Tax can be an inhibition to Shari'ah compliant financing because various jurisdictions' tax codes have not been designed with Shari'ah compliant structures in mind. However, the UK, French, Luxembourg and Irish Governments have amended or clarified their tax codes in order to facilitate Shari'ah compliant financing.
What are different jurisdictions doing? Read Full Story