I wanted to know whether it is haram to avoid tax by a self-employed individual registering people as employees that do not actually work for them but receive income from them every month? I don’t think this is illegal but I wanted to know if this is haram or permissible? And if haram, on which parties is it haram and what would you have to do with the money received?

If it is breaking the law of the land, such that those caught will be prosecuted, it becomes haram