Tax Compliance refers to the act of adhering to tax laws and regulations set forth by local, regional, or national tax authorities. It involves accurately reporting income, expenses, and other financial information on tax returns, paying taxes owed in a timely manner, and maintaining proper records and documentation to support these filings. Tax compliance ensures that individuals and businesses fulfill their legal obligations, avoid penalties or audits, and contribute fairly to public services and infrastructure. It can include both voluntary compliance, where taxpayers follow the rules on their own initiative, and enforced compliance, where authorities step in to ensure adherence.