I am currently working 10 hours per week and I want to increase this to 15 InshAllah. I and my employer have an agreement to keep these 5 additional hours secret and he would pay me in cash to avoid taxes. Is this allowed and can you consume the wealth of someone who does so?
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His slave and Messenger.
In a previous Fatwa, we highlighted that taxes are of two kinds:
First, taxes that are imposed for public interest and that are void of aggression or injustice, like those taxes imposed by the state for the services it provides to its subjects or when the state’s resources do not meet the needs and interests of people. This kind of tax is lawful, and thus cannot be evaded; rather, the person has to adhere to paying them, especially since these taxes are collected for meeting people’s interests. However, as for the money gained by a worker, it is lawful under all circumstances even if he evades the tax, and thus should not be denied this money under the pretext of not paying the tax.
Second, taxes imposed by the state for no need, such as when the state’s resources meet its needs and the interests of its citizens, then this kind of tax is unlawful. The individual is thus allowed to evade them since it is an act of injustice, unlawful consumption of people’s rights, and forcible seizure of others’ money.
Allah knows best.
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