What is the Islamic view on fraudulent benefit claims and tax evasion?
Fraudulent claims and tax evasion are tantamount to ‘corrupt transaction’, which are deemed as impermissible and condemned by the Quran (4: 29) and sunna of the Prophet. (Bukhārī, 3: 24; 8: 61, al-Kāfī, 1: 548) On numerous occasions the Quran warns Muslims against partaking in any corrupt transactions as this guarantees the displeasure of God and warrants severe retribution in the hereafter. Furthermore, the Prophet, who the Quran considers as the best of examples for Muslims, was acclaimed for his truthfulness and honesty. (Quran 33:21) In light of the Prophet’s examples there is no justification for any fraudulent benefit or tax evasion in any civil society.
Furthermore, fraudulent benefit claims and tax evasion is declared illegal and criminalised by the law of the land and therefore, one must abstain from it as there is an obligation on Muslims to abide by the law of the land in which they reside.