Not Declaring Income for Tax Purposes

Answered by Ustadh Tabraze Azam

Question: Is it permissible to pay minimum tax by not declaring actual income from business while I pay zakat?

Answer: Wa alaikum assalam wa rahmatullah,

I pray that you are in the best of health and faith, insha’Allah.

It is not permitted to lie, deceive, or do anything against the law.

The Messenger of Allah (Allah bless him and give him peace) said, “Whoever deceives us is not one of us.” [Sahih Muslim]

However, it is permitted to take any legal means to minimize the taxes you pay.

See also: Paying Taxes to a Government that Harms Muslims

And Allah alone gives success.

Wassalam

Tabraze Azam