Course outline
I. Introduction to Taxation
II. Types of Taxes
III. Tax Law and Administration
IV. Value Added Tax (VAT)
V. Corporate Income Tax (CIT)
Course Overview
• This course provides an in-depth introduction to the principles and
practices of taxation.
• It explores the nature, purpose, and role of taxation in public finance
and economic development.
• The course also covers essential aspects of tax planning, compliance,
and the ethical considerations involved in fiscal decision-making.
Course Overview
• Special topics such as tax law, value-added tax (VAT), corporate
income tax (CIT), tax avoidance/evasion, international taxation, tax
audits as well as other topics related to Mauritanian taxation are also
discussed to provide a global perspective on modern taxation
systems.
Presentations - Research
work
Topics
1. Tax avoidance vs. tax evasion
2. Tax planning strategies
3. Tax compliance requirements
4. Ethical considerations in tax planning
5. International taxation
6. Tax incentives and subsidies
7. Tax reforms and policy in Mauritania
8. Participatory Budgeting and taxation
9. Tax revenue management
10. History and source of taxation in Mauritania
11. Tax audits
I. Introduction to Taxation
Introduction to Taxation
1. History of taxation
2. Definition and purpose of taxation
3. Principles of a good tax system
4. Role of taxation in government finance
1. History of taxation
• The concept of taxation, in its broadest sense, dates back to ancient
civilizations such as the Egyptian dynasties and the Roman Empire.
• Initially, the Roman fiscal system relied on citizens’ service obligations,
including military duties.
• In ancient Greece, Pericles established the remuneration of public
officials, marking the introduction of a formal tax system that
imposed limited burdens on the population.
1. History of taxation
• From the 15th century, with the strengthening of royal power, taxation
became a royal prerogative, often imposed without public consent,
until enlightenment thinkers in the 17th century promoted the idea of
taxation based on consent and social contract.
• By the 18th century, taxation came to be seen as a contribution
granted by citizens in exchange for public services.
• In the 20th century, especially after the first world war and the great
depression, taxes evolved into instruments of economic and social
policy, used to promote growth and equity.
1. History of taxation
• Notably, Islam introduced one of the first legally grounded and ethical
systems of taxation. The Zakat — a mandatory almsgiving —
represents a core pillar of Islamic practice. The Quran explicitly
commands its collection as a means of purification and social
solidarity. Unlike earlier systems that served rulers’ interests, Islamic
taxation established a public treasury (Bayt Al Mal), separate from
personal wealth.
َل ِّل ِّك َط َق َأ
ُخ ْذ ِم ْن ْم َو ِلِه ْم َص َد ًة ُت ِّه ُر ُه ْم َو ُتَز ِه ِبَه َو َص َع ْيِه ْم ِإَّن
ا م ي ا
َص َالَتَك َس َكٌن َّلُه ْم َو الّلُه َس ِم يٌع َعِليٌم
ِإَّنَم ا الَّص َدَق اُت ِلْلُف َق َر اِء َو اْلَم َس اِكيِن َو اْلَع اِم ِليَن َعَلْيَه ا َو اْلُم َؤ َّلَف ِة
َّل ْل ُل
ُق وُبُه ْم َو ِف ي الِّر َق اِب َو ا َغاِر ِم يَن َو ِف ي َس ِبيِل ال ِه َو اْبِن
الَّس ِبيِل َف ِر يَض ًة ِم َن الَّلِه َو الَّلُه َعِليٌم َح ِكيٌم
القرآن الكريم — سورة التوبة
2. Definition and purpose of
taxation
• Taxation refers to the set of laws, rules, and measures that govern the
collection of taxes within a country.
• It encompasses the practices and mechanisms used by a state or local
authority to levy taxes and other compulsory contributions.
• Taxation plays a crucial role in a nation’s economy, as it provides the
financial resources needed to meet public needs and fund
government expenditures such as infrastructure and social services.
2. Definition of tax
• A tax is a compulsory monetary levy imposed by public authority on
taxpayers, on a definitive basis and without any direct consideration,
for the purpose of financing public expenditures.
• A tax is money that citizens and businesses must pay to the
government.
• It is mandatory, non-refundable, and does not give any direct benefit
in return.
• Taxes are used to finance public services and government activities.
3. Principles of a good tax
system
The collection of taxes must adhere to certain classical principles
established by Adam Smith:
Equity (justice) ;
Certainly ;
Convenience ;
Economy.
• Equity (Justice): Each citizen’s contribution to public expenses should
be proportional to their ability to pay (that is, to the income they
enjoy) without any excessive burden imposed by the state.
• Certainty: Taxation should be certain and not arbitrary, the time of
payment, method of collection, and rate of tax must all be clearly
determined in advance.
• Convenience: A tax is considered convenient when it is collected at a
time and in a manner most suitable for the taxpayer.
• Economy (Efficiency): Taxes should be designed to take as little as
possible from taxpayers beyond what is necessary to meet public
needs.
4. Role of taxation in
government finance
Taxation serves several important roles:
• Budgetary role: to provide financial resources and replenish the
state’s treasury.
• Social role: Beyond promoting equity, taxation can directly
redistribute wealth from higher-income groups to lower-income ones
via progressive tax systems and social spending.
• Economic role: to serve as an instrument of monetary and fiscal
policy.
4. Role of taxation in
government finance
• Developmental role: In developing countries, taxation is an essential
tool to finance infrastructure, education, and public health — all vital
for sustainable development.
• Regulatory role: Taxation can be used to influence or regulate
behaviors — for example, through taxes on tobacco, alcohol, or luxury
goods (sin taxes), or through tax incentives for investment and
innovation.
• Ecological role: to contribute to environmental protection.
Discussion question
What do you think about the general idea and logic of
taxation?