Should he use bank interest to pay off taxes?
Question

                It is compulsory on every resident (whether he is a citizen or not) in the country I live in to pay tax. Sometimes the tax that should be paid is too much, and sometimes it is normal. Some people think that the country does not have the right to collect taxes from people; so they use the interest they get from the banks to pay the tax. What is your opinion about this?.
Praise be to Allah.It is not permissible to 
    deposit money in riba-based banks, unless that is necessary to protect the 
    money, if there is no Islamic bank that is free from riba. In that case one 
    must limit it to putting money in current accounts only [i.e., those that do 
    not bear interest], so as to commit the lesser of two evils, and because 
    necessity should not be exaggerated. 
If any interest is paid on 
    the deposited money, then it must be got rid of, by spending it on various 
    charitable causes. 
The Standing Committee for 
    Issuing Fatwas was asked: I am a student in Britain, and we have to pay some 
    taxes to the government, such as road tax and another tax (VAT) of 15% on 
    anything we buy except food and children’s clothing. Now there is a new tax 
    on municipal services which are provided the local municipality, such as 
    education, waste disposal, swimming pools, parks, leisure centres and social 
    services. Since we do not benefit from most of these services, as they are 
    contrary to the teachings of our religion, and we only benefit from 
    education, waste disposal and children’s playgrounds, and we are obliged to 
    pay these taxes, which are between 3000 and 4000 Saudi riyals per year, my 
    question is: Is it permissible for me to put some money in a deposit 
    account, which is a riba-based account that yields 12% interest per year, 
    and pay some of these taxes using this interest that I will get from this 
    account? Because paying these taxes will put pressure on me financially. 
They replied: It is not 
    permissible for you to open an interest based account in order to pay off 
    taxes with this interest, because of the general meaning of the evidence 
    that riba is haraam. End quote. 
Shaykh ‘Abd al-‘Azeez ibn 
    Baaz, Shaykh ‘Abd al-Razzaaq ‘Afeefi, Shaykh ‘Abd-Allaah ibn Ghadyaan. 
Fataawa al-Lajnah 
    al-Daa’imah (13/366) 
See the answer to question no. 292 
And Allaah knows best.