This indicator reflects the proportion of businesses that have either been approached by tax authorities for on-site inspections or have been obliged to attend formal meetings with tax officials. Such interactions often signal the degree of regulatory oversight in a given region and can highlight the
burdens firms may face in compliance management. Higher percentages may indicate a more stringent tax environment, potentially impacting operational efficiency and strategic planning for businesses. Conversely, lower percentages might suggest a more relaxed regulatory landscape, fostering a conducive environment for entrepreneurship. Understanding this metric can provide insights into the transparency and predictability of the tax system, which are crucial for investor confidence and economic stability.
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