Salam Mufti Saheb I have a few questions relating to my Salary earned in my Job working in Germany. Is it permissible not to declare the whole amount of my Salary to the Gevernment? If I declare only half of my salary to the Government to avoid paying too much tax, is this permissible? Is it permissible to hide money abroad that is not declared to the Government? Would this money remain Halal? I am paying Zakat on the whole amount of my Salary. I want to avoid paying too much tax to the Government
In principle, Muslims residing in non-Muslim countries must abide by those laws of the country that are not un-Islamic.
Rasulullah [Sallallaahu Alayhi Wasallam] advised, ?It is not behoving of a believer to place himself in a place of disgrace?. If a Muslim is convicted for not complying to the government laws of taxes, he will be disgraced. This will also create a bad image for Muslims. As Muslims, we should understand our responsibilities and conduct ourselves with respect.
and Allah Ta’ala Knows Best
Mufti Ebrahim Desai