Darul Ifta Ibn Masood

Using Insurance Funds To Pay Taxes

· 25 Muharram 1446 AH1 min readEnglish

Question

A person has life insurance for his mother. She is still alive. is it permissible for him to keep the life insurance and once she passes away, he will take his capital amount and use the balance of the money to pay taxes?

Answer

He should cancel the insurance. If he keeps the insurance, then he may use the capital only. The interest will have to be given to poor Muslims that are recipients of Zakaat, or poor non-Muslims. It cannot be used to pay taxes.

Answered by
Mufti Mohammed Desai Saheb
View original Compare with other Darul Iftas
Questions about this ruling, answered only from the archive with sources.

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

Fatawa SA is an independent, read-only index of fatawa already published by Darul Ifta Ibn Masood. It is not a fatwa service. For your own situation, please ask a Mufti. Report an issue

For corrections or mistakes, please email us at fatawasa786@gmail.com.

Source: Darul Ifta Ibn Masood — https://fataawa.co.za/using-insurance-funds-to-pay-taxes/
Fatawa SA: https://fatawa.co.za/fatwa/ibnmasood-33885

People also ask

Is insurance permissible?

“Life insurance policies are Haraam as it is based on interest, gambling and uncertainty (Gharar). Make Taubah and Istighfaar for your mother for engaging in Haraam dealings. There are severe warnings cited in the Mubarak…”

Ibn Masood · 392 fatawa from 7 Darul Iftas on this

What the Darul Iftas say
Is it permissible to avoid paying tax?

“According to the SARS (South African Revenue Service) website, the estate duty is 20% of an estate exceeding R3.5 million. If the estate is R30 million or more, the estate duty will be 25%.”

Ask Imaam · 137 fatawa from 7 Darul Iftas on this

What the Darul Iftas say

Related fatawa