Q: My employer wants me to exagerate the time spent on tasks on a timesheet for a client. الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: You cannot make a dishonest claim even if it is at the insistence of your employer. If it is normal practice that the time taken to register the time […]
Read more...Category: Tax, Benefits, Fraud, and Copyright Fatawa
Do I have to pay tax on tips received during employment?
Q: Does my husband have to pay tax separately for small tips received during his employment? (For example, an average of £5 cash in hand per day). If it is obligatory to pay tax on this and he refuses to do so what is my extent of my obligation towards getting him to do this? […]
Read more...Is it permissible to give Sadaqah from your child benefit money or is the permission of the child required?
Q: Is it permissible to give Sadaqah from your child benefit money or is the permission of the child required? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Child benefit is a payment to and the property of the parent with parental responsibility. Whilst it is intended and indeed expected that the parent will use the […]
Read more...Can I reduce my tax liabilities through lying, as Islamically we are entitled to whatever we earn?
Q: Can I reduce my tax liabilities through lying, as Islamically we are entitled to whatever we earn? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: If the revenues of the state are not sufficient to meet its expenditure needs a tax may be levied on the population provided it is proportionate to the need. […]
Read more...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 […]
Read more...Can I be held liable for the tax evasion of my employers?
Q: What is the ruling on tax in Islam; specifically, employment tax? If I have a job where I am given cash in hand, so that the company can avoid tax, would I also be liable for escaping tax? Alternatively if I am hired privately to do a one off job, for example to paint […]
Read more...Is it permitted to claim unemployment benefits if one is readily able to find work but prefers to stay at home instead?
Q: Is it permitted to claim unemployment benefits if one is readily able to find work but prefers to stay at home instead? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: There are two main unemployment benefits: · Job Seekers Allowance (JSA) · Income Support (IS). JSA can only be rightfully claimed by […]
Read more...Are Muslims permitted to eat food bought from haram income (such as money falsely claimed in government benefits)?
Q: Are Muslims permitted to eat food bought from ḥarām income (such as money falsely claimed in government benefits)? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: If one receives state benefits fraudulently the amount of excess benefit so received without entitlement must be returned to the state. If the excess benefit is […]
Read more...Is it illegal to pay for services in cash?
Q: I had a question pertaining to taxes with reference to an earlier fatwa published on your website: http://alqalam.org.uk/fatawa/can-i-be-held-liable-for-the-tax-evasion-of-my-employers/ In Canada, the Canada Revenue Agency(CRA) warns about what is called the Underground Economy (UE) [http://www.cra-arc.gc.ca/undergroundeconomy/]. In light of thi 1) Is it permissible for Muslims to avail of services where the service provider(such as a […]
Read more...Is a HMRC tax deposit Zakatable?
Q: I have a question regarding the calculation of my zakat liability. My money has been deposited with HMRC to pay for outstanding tax liabilities. In theory I could still withdraw that money before 2019, but in this case interest would accrue and I would have to pay it all back in 2019 regardless. The […]
Read more...Should I make up for my previous under declared taxes?
Q: A brother estimates 3 years of under declared taxes and has no cash or funds or Job to be able to make up the missed payment. He also has some unsecured debt which he is unable to pay. He owns a house however his wife and children live in this. Essentially he does not […]
Read more...Due to the nature of the IR35 tax legislation, Can I take out insurance cover?
Q: HMRC have made a law against disguised employees in (April 2000) who are operating under a Ltd company. This law is called IR35. The problem is no matter how safe you think you are if case goes to court its just simply your word against theirs. If you represent yourself you will mostly likely lose the […]
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