Text copied Link copied

Al-Fatawa – home

﴿ فَاسْأَلُوا أَهْلَ الذِّكْرِ إِن كُنتُمْ لَا تَعْلَمُونَ ﴾

Scholar
Search mode

What is the ruling on buying a car and then selling it before it is registered in his name to evade taxes and insurance?

Machine translationRead the Arabic original
Question:
He says: Honorable Shaykh, may Allah grant you success. Car and real estate dealers sell what they have bought before the car or property is registered in their name. This is because transferring it to their name and possession, in the case of a car for example, incurs a tax from the traffic department, and they are also required to pay insurance. This involves a harm that can be avoided, and it is known that custom and practice have proceeded this way, and there is no harm to anyone. Is this transaction permissible?

Answer:
It appears that this transaction is not permissible. A fatwa has been issued by the Permanent Committee stating that one should not sell the car until he completes its procedures. He should not sell the car if he has bought it until he completes its procedures, or its procedures, until he has full control over it. Before the completion of its procedures, the buyer does not have full control over it. It is also necessary that he move it from the seller’s location. He must move the car from the seller’s location.
Source قناة «العلامة الدكتور صالح الفوزان»، [1202 -2802] ما حكم شراء السيارة ثم بيعها قبل أن تسجل باسمه هروبا من الضرائب والتأمين؟ — youtube.com

The Arabic text is a machine transcription of the audio recording.

Flag this fatwa