Is it illegal to pay for services in cash ?

Fatawa Question

I had a question pertaining to taxes with reference to an earlier fatwa published on your website: http://alqalam.org.uk/fatawa/can-i-be-held-liable-for-the-tax-evasion-of-my-employers/ In Canada, the Canada Revenue Agency (CRA) warns about what is called the underground economy (UE) [http://www.cra-arc.gc.ca/undergroundeconomy/]. In light of this 1. Is it permissible for Muslims to avail of services where the service provider (such as a carpenter, car mechanic etc.) settles for cash alone for jobs done ? 2. There have been instances in the past where I got my car fixed by a car mechanic and got repairs done to my home by a handyman etc. And paid cash only for the job to them. Should I now repent and return this money back to the CRA ? What if this was done unknowingly in the past ? What if I fear punitive measures from the CRA ? 3. As per the information contained in the website above, the CRA advises individuals to report tax evasion. What is my responsibility in this case as a Muslim ? am I expected to tell on such businesses ? what about businesses that I have dealt with in the past and for businesses / individuals that I come across in the future

Fatwa

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Publisher

al-Qalam Shariah Scholar Panel

Publication Date

2014-11-13

Country of Publication

United Kingdom

Main Subjects

Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Prices
• Taxes
• Payments

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-726224

• APA
• MLA
• AMA