Is it permissible to over claim benefits by under-declaring income?

Q: Is it permissible to over claim benefits by under-declaring income?

الجواب حامدًا و مصليًا و منه الصدق و الصواب

A: It is not permissible to over claim benefits by under-declaring one’s income. Any excess benefit fraudulently received in this manner is unlawful and must be returned to the state. However, if the excess benefit is deposited in an account that receives permissible income and the latter forms the majority, then the benefit claimant secures proprietary rights over the excess benefit despite the fraudulent nature of the claim. However, the claimant also incurs a debt for the same amount which is payable to the state. If the excess benefit is deposited in an account that receives only unlawful income or the majority received therein is unlawful, then the benefit claimant does not secure proprietary rights over the excess benefit until he has returned the same amount to the state. Without such return he is not authorised to utilise the excess benefit claimed.

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