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The performance of tax administrations (TAs) is usually described as their capacity to complete activities with the minimum of resources engaged. Accordingly, tax administration performance is a multifaceted phenomenon, and measuring and benchmarking its performance against other countries or regions remains a puzzle for researchers and practitioners. This paper introduces a new approach for measuring tax administration performance using the Composite I-Distance Indicator (CIDI) based on 11 individual performance measures from 35 European tax administrations over two consecutive years (2018–2019). For the given scores of tax administrations, we conducted a correlation analysis with (a) tax evasion loss and (b) the fiscal deficit of countries in which these tax administrations operate, aiming to assess the strength of the statistical relationship between these variables. The study highlights Denmark and the Netherlands as exemplary models for tax administration, with "Revenue Collection" being identified as a crucial driver of excellence and "Operational Performance" (such as "e-filing" and "on-time filing") forming critical aspects of TA efficiency. Also, the study finds a negative correlation between tax avoidance and tax administration performance. [ABSTRACT FROM AUTHOR]