The Majlis Archive
Finance - Banking - Business The Majlis Vol 20 No 10, p.3

Is it permissible to take out an insurance policy to pay taxes?

Question

Is it permissible to take out an insurance policy to pay taxes?

Answer

It is not permissible to indulge in a haraam act to counter another haraam act. Insurance is haraam. It is therefore not permissible to take out an insurance policy to pay tax. However, if you have funds in the bank and receive interest on it, then you may use such interest to pay the haraam/zulm tax.

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The Majlis Vol 20 No 10
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