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Thursday, July 16, 2009

Invoicing and Taxes

Q: I am getting some good from another country. Is it permissible to ask the company to create a seperate invoice with a lower value in order to pay less tax on the goods?

In Islam taxation that is imposed on the wealth of people is not permissible, even if such taxes are fixed by Muslim governments, let alone non Muslims. The Muslim Jurists have stated in many of their works that a Muslim is allowed to utilize any method at his disposal to avoid paying taxes, even though such a method may appear dubious or deceptive. In reality one is warding off an unjust imposition, whereas deceit and false pretences are only haraam when the idea is to acquire the property of another unjustly, or cause unlawful loss to the property of another.
And Allah knows best

Mufti Siraj Desai