What is the ruling regarding Zakah on wrongfully seized property (Ghasb), stolen property, property withheld unjustly (Majhud), or lost property (Dall)?
Chapter on Zakat on Debt and Charity
Al-Mughni
Book of Zakat
Primary text
The legal ruling concerning wrongfully seized property, stolen property, unjustly withheld property, and lost property is the same. There are two differing narrations regarding Zakah on these items. The first narration holds that no Zakah is due on such property. This view is attributed to Athram and Al-Maymuni, and it is the opinion of Abu Hanifah and Al-Shafi'i in his older opinion. The justification is that the property exited the owner's possession and control, becoming restricted from him, thus negating the Zakah obligation, similar to the property of a Mukatab (a slave working for his freedom).
Supporting text
The second narration holds that Zakah is due because the ownership remains complete. This is analogous to forgetting property deposited with someone else, or being imprisoned or detained such that one is prevented from accessing their property. For both narrations, Zakah is not required to be paid before the property is actually received.