The amnesty tax system A critical analytical study in light of the provisions of Libyan Law No. 7 of 2010 regarding income taxes

Abstract

 For any tax policy reform to succeed, it will contain regulations, each of which has its own merits. One method of tax policy reform is the tax amnesty system for tax penalties, including consequences of non-compliance. Its aim is to achieve a set of goals, including reduction of tax evasion and increase in state revenues. Many countries have applied this system, including the state of Libya, which first introduced it pursuant to Law No. 7 of 2010 regarding income taxes. Its executive regulations set the controls for benefiting from it and a set of effects was described, most of which are negative given the absence of a clear tax policy to make it successful; however, a tax amnesty system could be urgently needed in the future and, if this policy is available, backed by a permanent constitution for the state. Tax amnesty is one of the most important means of reforming the   Libyan tax system and returning lost revenue.