IslamQA

Underinvoicing to pay lesser government duty

Answered according to Hanafi Fiqh by Askimam.org

I am an importer of goods and have always been honest in paying my government duties. I have noticed that importers request their suppliers to under-invoice the consignment in order to pay a lesser amount in government duty.By me importing goods the proper way, I will be more expensive and will not be competitive in the market. Is it permissible for me to under invoice the consignment in order to be competitive in the market?

Answer

Every person who resides in a country or acquires its citizenship and
enters into an agreement with that government should follow the laws of that
land, therefore, he is under obligation to follow the laws unless a law of
the land that compells him to do an act which is prohibited in Shariah. On
the basis of this principle, since smuggling is illegal, a Muslim is
required to abide by this restriction. (Justice Mufti Taqi Usmani, Pakistan)

From Al Mahmood 10

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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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