Financing terrorism through taxation. The Taliban Layha Code and the “Palestinian tax” as examples of the use of normative solutions to finance terrorism

Abstract

One of the sources of financing terrorist organizations described in the literature is taxation. This practice is particularly prevalent in areas controlled by terrorists where the state apparatus is weak. In some cases, terrorist groups and the states supporting them attempt to frame such a “tax system” within normative bounds. The Layha Code, introduced by the Afghan Taliban in the 21st century, reflected their desire to control fiscal practices and contained provisions, based on the norms of the Quran, that could be placed at the border of tax law and public finance law norms. Meanwhile, the Palestine Liberation Organization obtained funding, among other sources, through the “Palestinian tax”, imposed on Palestinians by the governments of the Arab countries in which they were employed.