Does the tax Treatment show the impurity of islamic finance?

Written by Gerry Octaviano, MBA

According to prevailing tax regulation VAT does not impose on  islamic finance scheme if it is simply to fulfill the shariah principle.

The VAT only impose on the delivery of taxable goods from the party who owns the taxable goods (the real seller) to the party who really needs the taxable goods (the real buyer).

From the above explanation, we can raise the following questions:

1. Does it mean the existing islamic finance only unreal translations where actually the goods and/service, parties do not exist?

  And.....

2. Who are the parties that can fix the situations?  

.................. It could be you.......

Allah Wa'Allam