Jurisprudential and Legal Foundations of Criminalizing Tax Evasion

Abstract

Tax evasion, as one of the most significant challenges facing tax systems, exerts extensive effects on economic performance and social justice. This phenomenon not only reduces the government’s financial resources but also leads to the expansion of economic inequality and the weakening of public trust in the legal and administrative system. In Iranian law, the criminalization of tax evasion is based on the general principles of criminal law and is inspired by jurisprudential rules such as the necessity of preserving governance and Islam, safeguarding the Islamic society, and recognizing taxation as a public right. Moreover, the obligation of citizens to adhere to public order and social interests provides a firm foundation for prohibiting tax evasion. In fact, tax evasion is not merely a violation of tax regulations but constitutes harm to society and an infringement of public rights, which are generally and specifically prohibited by the Shari‘a. Alongside these principles, the prohibition of akl al-māl bi’l-bāṭil (illicit acquisition of property) and the fundamental necessity of maintaining public order are invoked to confront this phenomenon. From a jurisprudential perspective, the payment of taxes—as part of the civic obligations and as a mechanism to achieve public welfare—is endowed with a legitimate religious basis; therefore, evasion from it amounts to the infringement of public rights and the violation of social justice. From a legal standpoint as well, the legislator, by defining specific instances of tax evasion and prescribing criminal and civil sanctions, aims to protect public interests and secure the state’s financial resources. Consequently, the criminalization of this destructive phenomenon, emphasized within Islamic jurisprudence, is deemed indispensable for ensuring fiscal justice and safeguarding the proper functioning of the economic system within the Islamic community.