A taxpayer compliance check ensures individuals and businesses are meeting tax obligations by reviewing filings, transactions, and financial records.
This infographic outlines the essentials of a taxpayer compliance check. It is a review by tax authorities to verify whether tax returns and obligations have been met accurately. Triggers include sudden income changes, large transactions, or return mismatches. During the check, tax officials may request income records, transaction proofs, or explanations. Timely response, proper documentation, and accurate disclosures are key to managing compliance reviews and avoiding penalties.