What was Muhammad's attitude towards lying?
Muhammad treated truth and deception according his own style of situational ethics. Muhammad condoned, and actually permitted, lying to further his goals:
For example,
Narrated Jabir bin 'Abdullah:
Allah's Apostle said, "Who is willing to kill Ka'b bin Al-Ashraf who has hurt Allah and His Apostle?" Thereupon Muhammad bin Maslama got up saying, "O Allah's Apostle! Would you like that I kill him?" The Prophet said, "Yes," Muhammad bin Maslama said, "Then allow me to say a (false) thing (i.e. to deceive Kab). "The Prophet said, "You may say it." ... (Sahih al-Bukhari 5.369, cf. the article on Ka'b bin Al-Ashraf for further details)
Muhammad clearly condoned dishonesty, as well as murder, when it suited his purposes.
Lying today
Imam Abu Hammid Ghazali says: "Speaking is a means to achieve objectives. If a praiseworthy aim is attainable through both telling the truth and lying, it is unlawful to accomplish through lying because there is no need for it. When it is possible to achieve such an aim by lying but not by telling the truth, it is permissible to lie if attaining the goal is permissible." (Ahmad ibn Naqib al-Misri, The Reliance of the Traveller, translated by Nuh Ha Mim Keller, amana publications, 1997, section r8.2, page 745)
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