Under-invoicing goods

Question:-

When importing goods from other countries, the goods are not invoiced at the actual purchased price but under-invoiced to save on duties. Is such a practice acceptable or considered as a lie in Islam?

Answer:-

We assume that your query pertains to whether under-invoicing goods is considered as a lie or not. If the actual purchase price of the item was R20 but was invoiced at R10 then this cannot be considered as a lie, as in actual fact one did pay R10. He simply didn’t state the full amount paid for the item; he only mentioned part of the purchase price.

Notwithstanding the above, many custom officials are fully aware of goods being under-invoiced and such an action could ultimately lead to one being prosecuted. It is Haraam to bring any form of humiliation upon oneself, hence we advise abstention from such practices.

ALLAH TA’ALA KNOWS BEST!

ANSWERED BY:

Mufti Mohammed Desai

Date: 01 Jumadal Ukhra 1443 / 04 January 2022