Friday 10 Shawwal 1445 - 19 April 2024
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Giving a false statement about one’s salary to avoid paying taxes that one has already agreed to pay

Question

A university teacher’s employers have stipulated a condition that they will give him unpaid leave if he gives 25% of the income that he earns from another employer to an interest-based bank, so that they will take part of it as a tax. Is it permissible for him to give an incorrect statement of his income so that he can avoid putting a larger amount in the bank for the tax to be deducted from it?

Answer

Praise be to Allah.

The following question was put to Shaykh Muhammad ibn Saalih al-‘Uthaymeen, may Allaah preserve him, who replied as follows:

It seems that it is not permissible, because he has a contract with them, and if he has a contract with them it is not permissible for him to try to cheat their system.

Question: even if it involves an unfair tax?

Answer: but he agreed to that from the outset.

And Allaah knows best.

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Source: Shaykh Muhammad ibn ‘Uthaymeen