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Is Tax-Evasion permissible in Islam ? Vat is charged separate from selling price so does not belong to the business.

Fatwa 2567English
Finance and Commerce

Question

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Is Tax-Evasion permissible in Islam ? Vat is charged separate from selling price so does not belong to the business.

Answer

Respected Brother-in-Islam

Assalaamu Alaykum Wa Rahmatullaahi Wa Barakaatuhu

Q: Is it a sin to conceal one's actual income to the government to avoid paying exorbitant taxes? A: It is not a sin to conceal your proper income. However, one must avoid all such actions which bring disgrace upon one. Rasulullah (Sallallaahu Álayhi Wasallam) said, 'It is not proper for a believer to disgrace himself. ' (Tirmidhi)

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai
FATWA DEPT.

Answered by
Mufti Ebrahim Desai
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