Jurisprudence and Islamic Rulings -Part 6

Chapter 3

Transactions

Business and Finance: Taxes

42563: Fatwa of the Standing Committee on customs

Question:

I read in the book al-Zawaajir `an Iqtiraaf al-Kabaa'ir (Deterrent to committing major sins) by Ibn Hajar al-Haythami, which speaks of the ruling on mukoos (taxes, levies) and the Prophet's prohibition thereon, that those who impose such taxes will be the most severely punished on the Day of Resurrection. The economies of many states are based on customs taxes levied on imports and exports, so traders add these taxes to the retail prices of their goods. With the money raised in this manner the state undertakes various projects to build the country's infrastructure. I hope that you can explain the ruling on these taxes and the rulings on customs and working in customs. Is the ruling the same as that on mukoos or not?.

Answer:

Praise be to Allaah.

Charging customs taxes on imports and exports is regarded as a kind of mukoos and the maks (sing. of mukoos) is haraam and working in this area is haraam, even if the authorities spend it on various projects to build the country's infrastructure, because the Prophet (peace and blessings of Allaah be upon him) forbade taking the maks and spoke sternly concerning it. It was narrated from `Abd-Allaah ibn Buraydah, from his father, in the hadeeth about the stoning of the Ghaamidi woman who gave birth as the result of zina, that the Prophet (peace and blessings of Allaah be upon him) said: "By the One in Whose hand is my soul, she has repented in such a way that if the one who collects the maks were to repent like that, he would be forgiven." This hadeeth was narrated by Ahmad, Muslim and Abu Dawood.

Ahmad, Abu Dawood and al-Haakim narrated from `Uqbah ibn `Aamir that the Prophet (peace and blessings of Allaah be upon him) said: "No one who collects the maks will enter Paradise." Classed as saheeh by al-Haakim.

Al-Dhahabi said in his book al-Kabaa'ir:

The one who collects the maks is included in the general meaning of the verse in which Allaah says (interpretation of the meaning):

"The way (of blame) is only against those who oppress men and rebel in the earth without justification; for such there will be a painful torment"

[al-Shoora 42:42]

The one who collects the maks is one of the greatest helpers of the oppressors, in fact he is himself an oppressor, because he takes something to which he is not entitled. This is supported by the hadeeths of Buraydah and `Uqbah which are quoted above. Moreover the one who collects the maks has much in common with the bandit, who is a thief. The one who collects the maks, the one who writes it down, the one who witnesses it and the one who takes it such as a soldier or a flag bearer all share the burden of sin and are all consuming haraam wealth. End quote.

This is also consuming people's wealth unlawfully. Allaah says (interpretation of the meaning):

"And eat up not one another's property unjustly"

[al-Baqarah 2:188]

And it was proven that the Prophet (peace and blessings of Allaah be upon him) said, in his khutbah in Mina on the day of Eid during the Farewell Pilgrimage: "Your blood and your wealth and your honour are sacred to you, as sacred as this day of yours in this land of yours in this months of yours." So the Muslim must fear Allaah and give up haraam earnings, and seek halaal earnings, for there are many ways of earning a living in a halaal way, praise be to Allaah. Whoever strives to be independent of means, Allaah will make him so. Allaah says (interpretation of the meaning):

"And whosoever fears Allaah and keeps his duty to Him, He will make a way for him to get out (from every difficulty).

3. And He will provide him from (sources) he never could imagine. And whosoever puts his trust in Allaah, then He will suffice him. Verily, Allaah will accomplish his purpose. Indeed Allaah has set a measure for all things"

[al-Talaaq 65:2-3]

"and whosoever fears Allaah and keeps his duty to Him, He will make his matter easy for him"

[al-Talaaq 65:4]

And Allaah is the Source of strength, May Allaah send blessings and peace upon our Prophet Muhammad and his family and companions.

From Fataawa al-Lajnah al-Daa'imah, 23/489.

(www.islam-qa.com)

45713: He is exempted from paying duties; can he allow others to buy goods in his name?

Question:

Some brothers and I work in the diplomatic corps in a country that lets us off paying duties. Some citizens of that country come to us to buy goods for them in our name so that they can make use of that exemption and not have to pay duties, in return for paying us a sum of money. Is that permissible?.

Answer:

Praise be to Allaah.

This question covers two topics:

1 _ Customs and duties i.e., taxes that are charged on goods and products when moving them to one country to another. Taking these taxes from Muslims is expressly forbidden. This is the maks of which the Prophet (peace and blessings of Allaah be upon him) said: "The one who collects the maks will be in the Fire." Narrated by Ahmad, 16553; classed as saheeh by al-Albaani in al-Silsilah al-Saheehah, 3405. see also question no. 25758.

It is prescribed to avoid paying this forbidden tax by whatever means possible so that it will not harm him or cause more damage, even if he does that by means of a trick or paying some money to avoid this injustice.

If someone were to say that this comes under the heading of a person giving up his rights in return for money, that is permissible. This is what the fuqaha' call waiving one's rights. The Maalikis said that it is permissible to receive payment in return for the right to pre-emption and the Hanafis allowed waiving rights to appointment to public office and forfeiting the right to custody in return for money.

See al-Mawsoo'ah al-Fiqhiyyah al-Kuwaitiyyah, 4/243, 32/83.

The answer is that this is not the same as that, because those who are exempted from paying duties are the members of the diplomatic corps themselves; they are not allowed to exploit this favour to make money by allowing other people to avoid paying duties. Using it to allow the goods of others to pass into the country is a kind of trickery and deceit. If this is permitted, it is only permitted in cases of necessity, not for one to make a profit from it.

There follow some points of advice:

1- Those who work in the diplomatic corps should help their brothers for free, because that comes under the heading of warding off injustice from them. They must do this as much as they can.

2- If they do not want to offer this service for free, then it is not permissible for them to take more than costs of shipping the goods, accompanying them, doing the necessary paperwork, etc.

We also remind them that they have to be kind to their Muslim brethren and have a good intention in doing so; their aim should not simply be to amass wealth. And Allaah is the Source of strength.

Islam Q&A (www.islam-qa.com)

40234: He told the students to pay money towards classroom renovations and he gives them grades accordingly

Question:

The teacher asked us to pay 30 riyals before the exam for renovating the classroom, and he gave extra marks for participation or extra marks in the exam if the participation mark was already complete… and he claimed that this is permissible because the extra marks were not on the exam paper, rather it was in the final total of the marks and the opportunity was available to all students. It was to be paid before the exam and whoever was not able to pay that money could have had the amount reduced and if he was not able to pay at all, he could have been let off, so he could still have the same advantage as the other students had who did pay. Is what he did correct? Please give a detailed reply, quoting evidence.

Answer:

Praise be to Allaah.

The teacher does not have the right to take anything from the students, even if that this for the purpose of renovating the classroom, because that is not the responsibility of the students; rather it is the responsibility of the school. This money in many ways is similar to the haraam maks (customs levy or purchase tax) _ see question no. 39461 concerning the prohibition of the maks.

Marks for participation are only given to students for their efforts and hard work in their studies, not for giving money to the teacher! The same applies to grades in the test, they should be based on what the student has written on his test paper, and have nothing to do with renovation or adornment of the classroom.

If the teacher gives marks to students in return for them giving him money, this goes against the education system and is also wronging people with regard to their wealth, and exposing the poorer students to embarrassment when they have to tell him that they cannot pay all or some of the money.

The teacher has to fear Allaah and give each student the grades that he deserves according to the education system that is in place. He should not ask the students for money, no matter how little.

The teacher should encourage the students to donate money for repairs to the classroom, or for any other charitable cause. That comes under the heading of cooperating in righteousness and piety. It also makes the students get used to spending money on charitable causes. But that should have nothing to do with the grades that the students get.

And Allaah knows best.

Islam Q&A (www.islam-qa.com)

5218: A serious dialogue with a Christian

Question:

A university teacher's employers have stipulated a condition that they will give him unpaid leave if he gives 25% of the income that he earns from another employer to an interest-based bank, so that they will take part of it as a tax. Is it permissible for him to give an incorrect statement of his income so that he can avoid putting a larger amount in the bank for the tax to be deducted from it?

Answer:

Praise be to Allaah.

The following question was put to Shaykh Muhammad ibn Saalih al-`Uthaymeen, may Allaah preserve him, who replied as follows:

It seems that it is not permissible, because he has a contract with them, and if he has a contract with them it is not permissible for him to try to cheat their system.

Question: even if it involves an unfair tax?

Answer: but he agreed to that from the outset.

And Allaah knows best.

Shaykh Muhammad ibn Saalih al-`Uthaymeen (www.islam-qa.com