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A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures. Tax compliance refers to policy actions aimed at ensuring that taxpayers are paying the correct amount of tax at the correct time and securing any permitted tax allowances and tax reliefs. The first known taxation took place in Ancient Egypt around 3000-2800 BCE. A failure to pay in a timely manner (non-compliance), along with evasion of or resistance to taxation, is generally punishable by legislation. Taxes consist of direct or indirect taxes and may be paid in money or as its labor equivalent.
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