[risyGreeple]

Typically many Western countries impose high taxes on their citizens , compared to Muslim countries.
So, people have a tendency to play with the tax payment to the govt. If you go to a shop there, you will see the prices like 1.99 , 4.99 etc. I asked someone why they do not use simple figures like 2.00 , 5.00. He said that a higher tax rate will be imposed if the businessman use 2.00 instead of 1.99 !!!


Recenty I was talking to a friend of mine living in the UK. He told me that his friend, a practicing brother, works in a organization owned by the Muslim authority.

When this guy take salary from the organization , he takes the money in cash , no money receipt or bank transfer. As a result, both he and his organization can play with the tax payment to the non Muslim governments.

I am wondering if such a practice is widespread in Muslim communities in the UK. What is the Islamic
rule on such a tax avoidance scheme ? Is it Halal ? or , makruh ? or simply Haram ?

Do you know any fatwa on this issue ?

[Symnunidanimb]

according to a mufti who i personally asked, tax avoidance is halal.

[risyGreeple]

according to a mufti who i personally asked, tax avoidance is halal.

Would you please elaborate his reasoning behind this ? A detailed answer will be highly appreciated.

[Symnunidanimb]

Would you please elaborate his reasoning behind this ? A detailed answer will be highly appreciated.

sorry brother i was quite young when i put this question to him and it was a long time ago so i dont remember the details. the alim in my eyes was a pious and very knowledeable person so i took his word for it. you will probably get muftis who differ with him so its up to you who you follow.

[Cd9JfGHR]

Would you please elaborate his reasoning behind this ? A detailed answer will be highly appreciated.

The simple reason would be that it is your money. Nobody has the right to take your money under the disguise of tax. So if you can protect your money in this way, it would be allowed.

However, they also state that disgracing yourself in the community and putting the Muslims in trouble is also impermissible.

[gregmcal]

If there are legitimate ways of avoiding tax and vat then utilise that.

I think many Scholars would disagree also on the point that you should abide by the rules of your country.

On the other hand some people have cash in hand jobs and their employer wouldn't want to show them working full-time as this would incur employer tax and national insurance contributions on the employer, so in many instances the employer to save money wouldn't want to show the employee working full-time to hmrc (uk) - and the employee i feel wouldn't be at fault because he needs to earn a living.

Wallahu A'lam.

[AblemTee]

...and what about avoiding tax while living in a muslim country, the Islamic Republic of Pakistan for instance

[BEyng6hj]

what about people who are self employed and show that they earn less money by declaring there income less that what it really is, so they can get money from the government(benefits) is this halal ?

[risyGreeple]

...and what about avoiding tax while living in a muslim country, the Islamic Republic of Pakistan for instance

Is income tax in Pakistan high ? I think , its much lower than the UK ?

[risyGreeple]

If there are legitimate ways of avoiding tax and vat then utilise that.

I think many Scholars would disagree also on the point that you should abide by the rules of your country.

On the other hand some people have cash in hand jobs and their employer wouldn't want to show them working full-time as this would incur employer tax and national insurance contributions on the employer, so in many instances the employer to save money wouldn't want to show the employee working full-time to hmrc (uk) - and the employee i feel wouldn't be at fault because he needs to earn a living.

Wallahu A'lam.

The problem is that some parts of tax system is quite oppressive in the Western world. So I am wondering if there is any comprehensive fatwa from a well-reputed scholar on this tricky issue.

[gregmcal]

what about people who are self employed and show that they earn less money by declaring there income less that what it really is, so they can get money from the government(benefits) is this halal ?

well if they are self employed and having good income and then lie to get government benefits, then that would be classed as decieving, this is plain wrong.

like i said if you know the ins and outs sometimes there are loop-holes that allow you to dodge tax and vat legitimately.

If your SE then you need to have a good tax accountant lol.

[discountviagraman]

Avoiding tax is good and highly recommended, says me

[BEyng6hj]

Avoiding tax is good and highly recommended, says me

is that avoiding it the legal way or the non legal way ?

[discountviagraman]

is that avoiding it the legal way or the non legal way ?

Both

[gregmcal]

The problem is that some parts of tax system is quite oppressive in the Western world. So I am wondering if there is any comprehensive fatwa from a well-reputed scholar on this tricky issue.

I think one needs to analyze the situation they are in, if they are earning £300 tax free per week and say to hmrc they are working part-time (because the employer wants to dodge employer tax and national insurance) then this is out the hands of the employee, and he needs to earn a living I (as we know of the hard times in Europe in terms of jobs) - but he should try his best to tell him employer to show him working full-time. But if this person by earning so much doesn't show he is working atleast 16 hours and says he is un-employed to rake in extra governmental income then this again is plain wrong.

[gregmcal]

Both

My brother it can come back to you later if done the illegal way, and trust me; iv seen many cases go into investigation and whilst some facing fines in the tens of thousands others faced jail sentence.

[Symnunidanimb]

My brother it can come back to you later if done the illegal way, and trust me; iv seen many cases go into investigation and whilst some facing fines in the tens of thousands others faced jail sentence.

unless of course you are a multinational corporation or a high ranking councillor then you can avoid tax till the cows come home and will be untouchable.

[gregmcal]

unless of course you are a multinational corporation or a high ranking councillor then you can avoid tax till the cows come home and will be untouchable.

But we're not : )

Anyway the best money is the money that is hard earned.

[BEyng6hj]

Both

but the non legal way doesn't that = fraud which = haraam ?

[Lyikmcmb]

Anyway the best money is the money that is hard earned.

Agree, but after working hard the government wants to take as much as they can get there hands on...
Isn't that a crime in itself?