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Fatwa CenterRuling on helping companies avoid payment of tax, wholly or partially
Question
As salaam o alaikom. Thank you for answering my previous question. My father wants to start a business where he will have a govt. reg. co. and the purpose is to give bills to other companies which they can show in there accounts. The business will run in a manner that the companies give the amount of fake transaction and added tax (which is less if purchased from a reg. co. than a non-reg. co.) where my father will return the transaction amount and keep the tax amount (for bank records) , of which half will be paid to the govt. The other half will be my fathers profit. These are also known as adjustment bills. Is it halal to run such a business. My father is a very pious man and does his Islamic duties timely and properly. I do want him to commit any sin unknowingly. Please give the ruling according to this that we stay in a non-muslim country and here people have to give lots of taxes apart from our zakaat and donations, so people take different means to avoid tax. Jazak Allah Khair.
Answer
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His Slave and Messenger.
What we understood from the question is that the activity of the company of the father and his project is to employ tricks to lighten taxes for companies in return for a commission. We have explained the ruling of paying off taxes and the ruling of evading them in the Fatwa 85356.
Accordingly, it is not permissible to employ tricks to avoid paying lawful taxes and whoever helps in that matter is committing a sin, even without receiving any return.
However, if taxes are unlawful such as if they are exaggerated and unfair for the person or the company, or they are for no need or greater than the need of the state, then one can employ tricks to evade paying them off or lighten them and the person who exerts efforts to achieve that can take a return for his efforts according to the most preponderant opinion.
Allaah Knows best.
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