Egypt’s Dar Al-Ifta: Manipulating Commercial Invoices to Evade Taxes Is Strictly Forbidden
Egypt’s Dar Al-Ifta clarified that issuing invoices with prices lower than their true value to avoid taxes is a form of deception and dishonesty, warning that it is religiously forbidden and punishable by law.
Egypt’s Dar Al-Ifta has issued a clear statement regarding the manipulation of commercial invoices to reduce tax payments, affirming that this act is strictly prohibited in Islam as it involves lying, fraud, and betrayal of trust.
The statement explained that some traders intentionally record false prices to reduce their tax obligations, which falls under the category of false testimony (zūr) prohibited in the Qur’an, as in the verse:
"So avoid the impurity of idols and avoid false statements" (Qur’an, Al-Hajj 30).
The fatwa further noted that this act not only violates Islamic ethics but also constitutes a criminal offense under Egyptian law, as per Tax Law No. 11 of 1991 and Income Tax Law No. 91 of 2005, which impose fines and imprisonment for falsifying invoices or concealing financial records.
Dar Al-Ifta emphasized that honesty in commercial transactions is a fundamental Islamic value and a reflection of true faith, urging all traders to uphold integrity and transparency.
Finally, the institution called on business owners and accountants to comply with state regulations and contribute to building a just and stable society.
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