France is a country in Western part of Europe; it is the third largest country in Europe after Russia and Ukraine. France became a country of its own in the ninth century after the German people conquered the area in fifth century at the time of the fall of Western Roman Empire (Zeldin, 1982). In terms of economic power, it is the fifth largest economy and the wealthiest with a GDP of 2.66 trillion. In Europe it is the second largest economy with big part of resources coming from agriculture, large industrial production and a highly skilled work force. France economy is also supported with a vibrant and dynamic service sector which takes large share of economic activity and is responsible for good number of job creation in recent years (Todd,1991). Furthermore the Government of France has developed a well structured economic policy that aims to promote investments and domestic growth in a table fiscal and monetary environment.
To understand the taxation and fiscal policy in France it is important to defined taxation and fiscal policy in economic perspective respectively. Taxation therefore refers to the payments imposed on individuals and legal entities according to their ability to pay without consideration in return to cater for public spending and towards achieving economic and social objective set by the government at a given financial year. Whereas according to (Adams, 1989). Fiscal policy refers to the laid down government policies that affects tax rates, interest rates and government expenditure to control the economy. It controls the government influence on microeconomic condition.