A TAX is a mandatory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization to collectively support government spending, public expenditures, or as a way to regulate and reduce negative externalities.^[1] Tax compliance refers to policy actions and individual behavior aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax relief.^[2] The first known taxation took place in Ancient Egypt around 3000–2800 BC.^[3] Taxes consist of direct or indirect taxes and may be paid in money or as its labor equivalent.

All countries have a tax system in place, in order to pay for public, common societal, or agreed national needs and for the functions of government.^{[citation needed]} Some countries levy a flat percentage rate of taxation on personal annual income, but most scale taxes are progressive based on brackets of annual income amounts. Most countries charge a tax on an individual's income as well as on corporate income. Countries or sub units often also impose wealth taxes, inheritance taxes, gift taxes, property taxes, sales taxes, use taxes, environmental taxes, payroll taxes, duties or tariffs. It is also possible to levy a tax on tax, as with a gross receipts tax.