Paying interest : interest on taxes

Fatawa Question

[Question one] : Assalam Alaykum Dear Dr. Monzer, I hope you are all well by the grace of almighty. I have a question regarding payment of interest on taxes owed to government. After some adjustments IRS determined that I owe a small amount in interest. I have requested them to waive it based on religious grounds. But I am not very hopeful of a positive answer. I am more likely going to pay and I have strong feeling that it falls into the category of doing something under compulsion. To my understanding there is no sin on a person if he is forced to do something without willful disobedience. There is nothing more I can do except for ask them to waive it. Please provide a scholarly view in the light of Quran and Sunnah. JazakAllah Khair ! [Question two] : Assalam Alikum Dear Dr. Monzer, Thank for your reply. I am very clear on this now after your explanation. Also, when we deposit money somewhere (for example, rental) they put the deposit money in savings account and at the end of rental term send you cheque with deposit amount plus the interest accumulated. In these situations we don't have any control over it as to what they do with the money, and it is usually their normal procedure. I hope that this situation also falls under the same criteria and there is no sin on us. What I normally do is take out the amount of interest and give in charity. Is this the correct approach Islamically ? JazakAllah Khair Regards, Fawad

Fatwa

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Publication Date

2010-07-29

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Taxes
• Usury

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-730477

• APA
• MLA
• AMA