Working as an Accountant and not Paying Taxes
Question:
I have become self – employed, and have a contract with one company for one year… I found an accountant, he states that I will not pay tax for the first year even though others have told me that this sounds dodgy but am not sure that they are right either… The question I guess is that am I allowed to use an accountant and not question his transactions and professionalism in terms of avoiding tax for my benefit. Is my income halal?
Answer:
Lying and deception are both unlawful and sinful in Shariah, hence it will not be permitted to lie and deceive even to avoid unjust taxes. However, it is permitted to take all lawful means to reduce or even avoid taxes.
The Messenger of Allah (Allah bless him and give him peace) said: “The one who cheats is not of us.” (Sahih Muslim, Sunan Tirmidhi, Sunan Abi Dawud and others)
Therefore, what you need to do is to make your position clear to your accountant. Explain to him that you do not want him to lie, cheat and deceive when he manages your accounts. If you are able to trust him in this, then there is nothing wrong in you using his services, as your responsibility would be fulfilled by you making your position clear. However, if you cannot trust his dealings, you should seek another accountant who you are able to trust and who will manage your accounts according to your wishes and requirements.
Your income will remain Halal as long as it is not acquired through any unlawful means, i.e. your job is lawful and the money comes from a Halal source.
And Allah knows best
[Mufti] Muhammad ibn Adam
Darul Iftaa
Leicester , UK