However, I wish for the Christians and Muslims who frequent this blog to explore this issue before I present any conclusion. Let's hear the arguments and the defenses, and let's let the Muslims defend their doctrine. If they can clarify the doctrine to be a noble one, then that would be great and this will not be an issue of division. If not, the non-Muslims will have solid reason to believe that ignoble principles are advanced by Allah.
Allow me to post the appropriate Islamic scripture without much commentary.
Verses and Ahadith
This verse implies that Muslim can be deceptive with non-Muslims, feigning friendship "by way of precuation":
Let not the believers Take for friends or helpers Unbelievers rather than believers: if any do that, in nothing will there be help from Allah: except by way of precaution, that ye may Guard yourselves from them.
This hadith states that people are allowed to lie if the purpose is to make peace between people:
He who makes peace between the people by inventing good information or saying good things, is not a liar.
Sahih Bukhari 3:49:857
This hadith shows Muhammad allowing a lie to be told in order to kill an enemy:
The Prophet said, "Who is ready to kill Ka'b bin Ashraf (i.e. a Jew)." Muhammad bin Maslama replied, "Do you like me to kill him?" The Prophet replied in the affirmative. Muhammad bin Maslama said, "Then allow me to say what I like." The Prophet replied, "I do".
Sahih Bukhari 4:52:271
Example of Taqiyya?
Below is an investigation of an imam in Australia who attempts to deceive the police by vandalizing his own mosque, and then blaming it on someone else. Is this taqiyya? I'm not providing an answer, I'm asking you to tell me in the comments section :-)