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Is Tax-Evasion permissible in Islam ? Vat is charged separate from selling price so does not belong to the business.

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Answer

Respected Brother-in-Islam

Assalaamu Alaykum Wa Rahmatullaahi Wa Barakaatuhu

Q: Is it a sin to conceal one’s actual income to the government to avoid paying exorbitant taxes?
A: It is not a sin to conceal your proper income. However, one must avoid all such actions which bring disgrace upon one. Rasulullah (Sallallaahu
Álayhi Wasallam) said, ‘It is not proper for a believer to disgrace himself.
‘ (Tirmidhi)

and Allah Ta’ala Knows Best

Mufti Ebrahim Desai
FATWA DEPT.

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This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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