Taxpayer Compliance

Taxpayer compliance refers to the degree to which individuals and businesses adhere to tax laws and regulations. This includes accurately reporting income, paying taxes owed on time, and following legal guidelines for deductions and credits. High compliance levels contribute to government revenue and effective public services. Factors influencing compliance include tax education, perceived fairness of the tax system, the likelihood of audits, and penalties for non-compliance. Overall, taxpayer compliance is essential for a functioning economy, as it ensures that necessary funds are available for government operations and societal needs.