The Extent of the Applicability of International Accounting Standard No. 12 (IAS 12) and Its Role in Achieving Tax Fairness

Abstract

The study aims to identify the possibility of applying International Accounting Standard (IAS-12) in Libyan commercial banks, and to demonstrate its role in achieving tax justice among them. To achieve this objective, the researchers relied on the inductive and deductive approaches, as well as the descriptive-analytical method, to analyze the data collected from the study sample. The study population consisted of commercial banks with foreign partnership in the city of Tobruk. The study sample comprised employees of these banks. A total of (50) questionnaires were distributed to the branches of these banks , and (48) valid questionnaires were retrieved for analysis. After conducting statistical tests, the study reached several findings, the most important of which are: the presence of a positive and effective role for International Accounting Standard (IAS-12) in achieving tax justice, by reducing the differences between accounting profit and taxable profit, and improving the transparency of accounting disclosure for income taxes. The study concluded with several recommendations, most notably: adopting International Accounting Standard (IAS-12) as an approved accounting reference when calculating income tax for commercial banks, in a way that enhances tax justice and unifies accounting treatment, and the necessity of reviewing and updating the Libyan Income Tax Law to comply with the requirements of international accounting standards.