What does ‘Taking The Piss’ mean?

Given the British tendency to mock and satirise anything and everything possible, ‘taking the piss’ is in fact one of the most popular and widely-used British slang terms. To ‘take the piss’ means to mock something, parody something, or generally be sarcastic and derisive towards something.

For example, ‘The guys on TV last night were taking the piss out of the government again.’