What is tax reporting?

Tax reporting is the process of compiling, organising, and submitting financial information to regulatory authorities to fulfil tax obligations. It involves detailing key financial data such as income, expenses, deductions, and credits. The purpose of tax reporting is to accurately calculate tax liabilities or refunds while ensuring compliance with applicable tax laws and regulations.

For both individuals and businesses, proper tax reporting is essential to meet legal requirements, maintain transparency in financial transactions, and avoid penalties. It also plays a crucial role in financial planning, helping businesses and individuals manage their finances more effectively.