With what I am earning today, I am eligible to pay the Income Tax in my country. Now my question to you is can I exploit the IT rules

· 3 Rabiʻ II 1427 AH1 min readFatwa 14206English

Question

I’ve a question regarding the payment of taxes in my country.

With what I am earning today, I am eligible to pay the Income Tax in my country. Now my question to you is can I exploit the IT rules so that I don’t have to pay the tax or pay minimum tax. Whats the ruling in shariah for this?

Answer

Principally, income tax is not a legitimate Shar’ee tax which may be imposed by an Islamic state. However, if a person chooses to adopt the nationality of a non-Muslim country, then he is morally obligated to obey the rules of that country. This is in keeping with the teachings of Nabi [sallallaahu alayhi wasallam] that a Muslim should not behave in such a manner that will bring himself (and Islam) into disrepute (a sure outcome of tax evasion).

However, we sanction tax planning which is employing concession, rebates, etc. available to the taxpayer within the country’s tax framework in order to minimize the tax liability.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai

Answered by
Mufti Ebrahim Desai
Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

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