This indicator reflects the average frequency of engagements between firms and tax officials over the course of a year, capturing the interactions that businesses must navigate in compliance with tax regulations. It encompasses visits or mandatory meetings for firms that have reported such contact, providing insights into the
administrative burden placed on businesses. A higher average indicates a more involved regulatory environment, potentially signifying challenges in compliance or inspection processes. Understanding this metric can help policymakers identify areas requiring reform or streamlining, ultimately aiding in the enhancement of tax administration efficiency and reducing the compliance cost for businesses. By analyzing trends in these visits, stakeholders can better appreciate the engagement dynamics within the tax system and its impact on firm operations.
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