Is It a Sin to Hide One’s Income to Avoid Dues out of Financial Hardship?


Answered by Shaykh Irshaad Sedick

Question

How serious is undeclared work (earning income without disclosure to avoid lawful dues)? Should such cases be judged differently from crimes like theft or drug dealing, especially when done out of financial hardship rather than greed?

Answer

In the Name of Allah, the Most Merciful and Compassionate.

Thank you for your question. May Allah grant you clarity and provide ease and lawful sustenance.

Undeclared work may not be the same as theft or drug dealing, but it still involves an element of deception and civil disobedience. The Prophet (Allah bless him and give him peace) said, “Whoever cheats us is not of us.” [Muslim] Deceit and dishonesty are undoubtedly sins in Islam, even if the harm is less apparent.

However, our religion also recognizes the difference between greed and hardship. When someone hides income purely to amass wealth or out of stinginess, it is undoubtedly more blameworthy than when one does so under genuine financial duress. However, one must abide by governing laws as long as they conform to Allah’s Law.

Allah (Most High) says: “O believers! Obey Allah and obey the Messenger and those in authority among you. Should you disagree on anything, then refer it to Allah and His Messenger, if you ˹truly˺ believe in Allah and the Last Day. This is the best and fairest resolution.”

Believers should always seek lawful means, speak truthfully, and rely upon Allah for provision. If one has erred, repentance and rectification are required, with trust that Allah forgives those who turn back to Him sincerely.

And Allah knows best.

[Shaykh] Irshaad Sedick
Checked and Approved by Shaykh Faraz Rabbani

Shaykh Irshaad Sedick was raised in South Africa in a traditional Muslim family. He graduated from Dar al-Ulum al-Arabiyyah al-Islamiyyah in Strand, Western Cape, under the guidance of the late world-renowned scholar Shaykh Taha Karaan (Allah have mercy on him), where he taught.

Shaykh Irshaad received Ijaza from many luminaries of the Islamic world, including Shaykh Taha Karaan, Shaykh Muhammad Awama, Shaykh Muhammad Hasan Hitu, and Mawlana Abdul Hafeez Makki, among others.

He is the author of the text “The Musnad of Ahmad ibn Hanbal: A Hujjah or not?” He has been the Director of the Discover Islam Centre, and for six years, he has been the Khatib of Masjid Ar-Rashideen, Mowbray, Cape Town.

Shaykh Irshaad has fifteen years of teaching experience at some of the leading Islamic institutes in Cape Town. He is currently building an Islamic podcast, education, and media platform called ‘Isnad Academy’ and has completed his Master’s degree in the study of Islam at the University of Johannesburg. He has a keen interest in healthy Prophetic living and fitness.