The following question was asked of a marja`:
We live in a European country that has value taxes that are very high. Keeping this in mind, what is the ruling on Muslims here that evade paying the complete taxes? By that I mean that they avoid taxes by way of deception and trickery.
So when one of them owns a convenience store and the end of the month comes, he does not record and fill out all the invoices for the state or he changes or makes distortions in the buying in and selling book with regards to incomings and outgoings.
In doing this he pays very little tax as in the estimation of the state he has earned very little profit, knowing good and well that these taxes that are given to the country go towards children, the disabled and others who are unable to work. So what is the ruling in this regard?
The marja,` Imam `Abdur-Rahman Ash-Shami, may Allah preserve him, answered with what follows:
You are obliged to adhere to the laws of the country that you are in with regard to that matter and with regard to the generality of the taxes that are to be paid.